Equities Sector Coverage: Wall Street Plummets As Investors Get Bearish

Sector Recap |

nyse, wall street, economy, stock marketInitial Jobless Claims came in at 387,000 still above the 350,000 recessional thresholds. Existing Home Sales fell 1.5% in May to an annual rate of 4.55 million. Leading Indicators rose 0.3% in May. The Philly Fed Index plunged to -16.6 in June, which is a surprise contraction. The Dow Jones Industrial Average traded up to 12,857.39 then down to 12,580.88 breaking back below its 50-day simple moving average at 12,745. The NASDAQ declined from 2930.93 to 2859.08 breaking back below its 50-day simple moving average at 2915.

Asian stocks were mixed on Thursday. The Nikkei 225 ended the day at 8,824 – up 0.82%. The Hang Seng ended the day at 19,265 – down 1.30%. European exchanges closed lower on Thursday. The FTSE 100 ended the day at 5,566 – down 0.99%. The DAX ended the day at 6,343 – down 0.77%. The CAC 40 ended the day at 3,114 – down 0.39%. The yield on the 10-Year US Treasury rose from 1.623% to 1.666% then declined to 1.594 on weaker than expected economic data.

Gold declined from $1608.2 the Troy ounce to $1564.8 versus the 50-day and 200-day simple moving averages at $1612.7 and $1673.6. Crude oil declined from $81.20 per barrel to $78.05 versus the October 4, 2011 low at $74.95. The euro versus the dollar traded down 1.2707 to 1.2535.

Energy

Core Labs (CLB) - HSBC Securities initiates the stock with a Neutral rating with a target price at $140. National Oilwell Varco (NOV) has been initiated with an Overweight rating at HSBC Securities with a price target at $97. Solazyme (SZYM) has been initiated with a Buy rating at ThinkEquity. Seadrill Limited (SDRL) - HSBC Securities upgrades the oil and gas exploration firm to Overweight from Equal Weight. Dow components – Chevron (CVX) down 1.60%, Exxon Mobil (XOM) down 2.25%.
Energy Select Sector SPDR (XLE) was trading at $63.20 at 3:30 PM on Thursday, down 3.82% on the day – down 8.58% year-to-date.

Materials

CEMEX S.A. (CX) has been upgraded to Neutral from Underweight at HSBC, who also upgrades France’s LaFarge (LFRGY) to Overweight from Equal Weight. Dow components – Alcoa (AA) down 2.80%, DuPont (DD) down 1.39%.
The Materials Select Sector SPDR (XLB) was trading at $34.11 at 3:30 PM on Thursday, down 3.01% on the day – up 1.82% year-to-date.

Industrials

The pilots union at American Airlines (AAMRQ.PK) has rejected the company's final contract proposal, which will toss this dispute to a bankruptcy judge in New York. AO Smith (AOS) has been initiated with a Market Perform at BMO Capital. Southwest Airlines (LUV) has been initiated with an In-line rating at Imperial Capital with a price target at $10. The company’s costs have been growing faster with revenue growing more slowly than the legacy carriers. Dow components – Boeing Co (BA) down 1.12%, Caterpillar (CAT) down 1.46%, General Electric (GE) down 1.59%, 3M Company (MMM) flat, United Technologies (UTX) down 0.30%.
The Industrial Select Sector SPDR (XLI) was trading at $34.70 at 3:30 PM on Thursday, down 1.76% on the day – up 2.81% year-to-date.

Consumer Discretionary

Bed Bath & Beyond's (BBBY) reported that their FQ1 EPS rose 24% to 89 cents beating expectations, while revenue climbed 5% to $2.22 billion, which was in line. Shares plunged 10.6% in after hours trading on Wednesday as FQ2 guidance was below consensus. The decline came after the stock hit an all-time high on Tuesday. Carmax (KMX) reported that FQ1 net profit slips to $120.75 million from $125.5 million. Carmax intends to open ten new superstores in FY 2013, up from five in FY 2012. Sonic (SONC) beat FQ3 EPS estimates despite a slight dip in total revenue. Same-store sales increased 2.8%. V.F. Corp (VFC) has been added to Citigroup’s list of Top Picks Live. Under Armour (UA) - The athletic apparel outfit has been downgraded to Neutral from Buy at UBS. Dow Components – Disney (DIS) down 0.10%, Home Depot down 1.82%, McDonalds (MCD) down 0.23%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.22 at 3:30 PM on Thursday, down 1.95% on the day – up 10.76% year-to-date.

Consumer Staples

Bed Bath & Beyond's (BBBY) reported that their FQ1 EPS rose 24% to 89 cents beating expectations, while revenue climbed 5% to $2.22 billion, which was in line. Shares plunged 10.6% in after hours trading on Wednesday as FQ2 guidance was below consensus. The decline came after the stock hit an all-time high on Tuesday. ConAgra's (CAG) in their FQ4 results reported that their Consumer Foods segment revenue was up 6.1% year over year to $2.15 billion. Consumer Foods revenue rose 6.8% to $1.264 billion. Expects EPS growth of 6% to 8% in FY13. Whole Foods (WFM) hit an all time highs and is initiated with a Buy rating at SunTrust. The TJX Companies (TJX) - The discount retailer recently traded at an all time high, has been upgraded to Outperform from Market Perform at Wells Fargo. Dow components – Kraft (KFT) up 0.36%, Coca Cola (KO) down 0.07%, Procter & Gamble (PG) down 0.53%, Wal-Mart (WMT) down 0.42%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.89 at 3:30 PM on Thursday, down 0.94% on the day – up 4.32% year-to-date.

Health Care

Johnson & Johnson (JNJ) will soon be settling a Department of Justice probe into the off-label marketing of its antipsychotic medication Risperdal. J&J will likely need to pay a penalty at $1.5 to $2.0 billion or slightly higher. Laboratory Corp (LH) - Canaccord Genuity initiated the stock with a buy rating. Jazz Pharmaceuticals (JAZZ) has been reinstated with an Overweight rating at Barclays. Onyx Pharmaceuticals (ONXX) has been initiated with a Buy rating at Deutsche Bank. Quest Diagnostics (DGX) has been initiated with a Hold rating at Canaccord Genuity. MedAssets (MDAS) has been upgraded to Buy from Neutral at UBS. NuVasive (NUVA) has been upgraded to Outperform from Market Perform at Wells Fargo. Dow Components – Johnson & Johnson (JNJ) down 0.60%, Merck (MRK) up 1.34%, Pfizer (PFE) up 0.82%.
The Health Care Select Sector SPDR (XLV) was trading at $37.11 at 3:30 PM on Thursday, down 1.17% on the day – up 6.98% year-to-date.

Financial

Chimera Investment (CIM) has been downgraded to Underperform from Neutral at Bank of America-Merrill Lynch. DCT Industrial Trust (DCT) has been downgraded to Underperform from Market Perform with Wells Fargo. Dow Components – American Express (AXP) down 0.32%, Bank of America (BAC) down 1.90%, JP Morgan Chase (JPM) down 0.85%, Travelers (TRV) down 0.89%.
The Financial Select Sector SPDR (XLF) was trading at $14.27 at 3:30 PM on Thursday, down 1.79% on the day – up 10.92% year-to-date.

Information Technology

Microsoft (MSFT) has received widespread industry backing and good reviews for Windows Phone 8 after introducing it yesterday. AT&T (T), Verizon (VZ), and T-Mobile (DTEFG.PK) have promised to support the new OS. Red Hat (RHT) lowered guidance on their FQ1 earnings call to $1.32-$1.34 billion, slightly below prior guidance of $1.34-$1.36 billion. Micron Technology (MU) missed FQ3 EPS of -$0.32 by twelve with a beat on the revenue line. ASML Holding (ASML) - The semiconductor stock has been initiated with an Outperform by Sanford Bernstein with a price target at $75.40. VeriFone (PAY) has been initiated with a Neutral rating at Susquehanna. Dow Components – Cisco Systems (CSCO) down 1.94%, Hewlett-Packard (HPQ) down 1.49%, IBM (IBM) down 1.35%, Intel Corp (INTC) down 1.84%, Microsoft (MSFT) down 1.13%.
The Technology Select Sector SPDR (XLK) was trading at $28.23 at 3:30 PM on Thursday, down 2.15% on the day – up 10.92% year-to-date.

Telecommunication Services

Microsoft (MSFT) has received widespread industry backing and good reviews for Windows Phone 8 after introducing it yesterday. AT&T (T), Verizon (VZ), and T-Mobile (DTEFG.PK) have promised to support the new OS. American Tower (AMT), Crown Castle (CCI) and private equity firms have made second-round bids for T-Mobile USA's (DTEGF.PK) cellular towers. Koninklijke KPN (KKPNY) - The Dutch telecom titan traded sharply lower in Europe this morning after being downgraded to Neutral from Buy at UBS. NII Holdings (NIHD) has been downgraded to Market Perform from Outperform with Wells Fargo. Dow components – AT&T (T) down 0.07%, Verizon (VZ) up 0.70%.
The NASDAQ Telecommunications Index (IXTC) was trading at $182.25 at 3:30 PM on Thursday, down 2.62% on the day – down 7.45% year-to-date.

Utilities

AES Corp. (AES) has been initiated with a Neutral rating at Macquarie. Brookfield Infrastructure (BIP) has been initiated with a Neutral rating at Citigroup. EQT Corp (EQT) has been upgraded to Buy from Hold at Deutsche Bank. Xylem (XLY) has been upgraded to Buy from Neutral at Janney Montgomery Scott. CenterPoint (CNP) has been downgraded to Neutral from Outperform at Credit Suisse. Dominion Resources (D) up 0.18%, Edison International (EIX) up 0.04%, First Energy (FE) up 0.35%, PG&E Corp (PCG) up 0.22%, Southern Company (SO) up 0.41%.
The Utilities Select Sector SPDR (XLU) was trading at $36.34 at 3:30 PM on Thursday, down 0.79% on the day – up 1.00% year-to-date.

STOCKS: CVX, XOM, CLB, NOV, SZYM, SDRL, AA, DD, CX, LFRGY, BA, CAT, GE, MMM, UTX, AAMRQ.PK, AOS, LUV, DIS, HD, MCD, BBBY, KMX, SONC, VFC, US, KFT, KO, PG, WMT, CAG, WFM, TJX, JNJ, MRK, PFE, LH, JAZZ, ONXX, MDAS, NUVA, DGX, AXP, BAC, JPM, TRV, MET, CIM, DCT, CSCO, HPQ, IBM, INTC, MSFT, RHT, MU, ASML, PAY, T, VZ, DTEFG.PK, AMT, CCI, KKPNY, NIHD, D, EIX, FE, PCG, SO, AES, BIP, EQT, XLY, CNP

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
MMM 3M Company 172.43 -0.20 -0.12 1,871,524
RHT Red Hat Inc. 76.08 0.89 1.18 2,033,210
ASML ASML Holding N.V. 99.78 -0.21 -0.21 701,125
SDRL Seadrill Limited (Bermuda) 2.95 -0.13 -4.22 13,339,818
PG Procter & Gamble Company (The) 82.40 0.54 0.66 9,079,412
GE General Electric Co 31.34 -0.05 -0.16 21,401,028
CVX Chevron Corporation 113.00 -0.29 -0.26 6,167,368
SO Southern Company (The) 46.76 0.17 0.36 4,386,169
PCG Pacific Gas & Electric Co. 58.28 0.24 0.41 2,343,089
SONC Sonic Corp. 25.49 -1.25 -4.67 1,573,022
JNJ Johnson & Johnson 111.96 0.58 0.52 6,167,740
WMT Wal-Mart Stores Inc. 70.88 0.21 0.30 6,674,206
AA Alcoa Inc. 29.04 0.16 0.55 3,870,822
INTC Intel Corporation 34.16 0.40 1.18 21,492,534
IBM International Business Machines Corp 160.02 0.20 0.13 2,740,867
CNP CenterPoint Energy Inc (Holding Co) 24.10 0.30 1.26 4,181,472
D Dominion Resources Inc. 73.78 1.03 1.42 2,952,469
NOV National Oilwell Varco Inc. 37.89 0.30 0.80 2,744,612
TRV The Travelers Companies Inc. 115.65 0.24 0.21 1,885,339
MDAS MedAssets Inc. n/a n/a n/a 0
GPS:CA BSM Technologies Inc. 1.23 0.00 0.00 44,100
EIX Edison International 69.40 0.84 1.23 1,435,505
JAZZ Jazz Pharmaceuticals plc 102.32 0.56 0.55 544,447
MET MetLife Inc. 55.66 -0.61 -1.08 5,367,966
JPM JP Morgan Chase 81.60 -0.19 -0.23 16,931,504
AXP American Express Company 71.86 -0.67 -0.92 2,959,077
UTX United Technologies Corporation 108.22 0.74 0.69 3,124,427
TJX TJX Companies Inc. (The) 77.10 -0.57 -0.73 3,196,469
BIP Brookfield Infrastructure Partners LP Limited Part 32.00 0.14 0.44 522,403
CSCO Cisco Systems Inc. 29.25 -0.20 -0.68 27,069,499
LUV Southwest Airlines Company 47.91 0.84 1.78 4,843,592
AES The AES Corporation 11.18 0.15 1.36 5,521,035
DIS Walt Disney Company (The) 98.50 -0.44 -0.44 7,737,193
PAY Verifone Systems Inc. 15.52 -0.74 -4.55 5,339,647
VZ Verizon Communications Inc. 49.81 -0.06 -0.12 10,650,716
SZYM Solazyme Inc. n/a n/a n/a n/a
VFC V.F. Corporation 55.79 0.02 0.04 2,699,954
CLB Core Laboratories N.V. 114.36 -1.78 -1.53 396,015
BAC Bank of America Corporation 21.23 -0.27 -1.26 128,468,708
MCD McDonald\'s Corporation 118.24 -0.23 -0.19 3,348,723
DD E.I. du Pont de Nemours and Co. 73.13 -0.49 -0.67 3,233,772
DGX Quest Diagnostics Incorporated 88.00 0.55 0.63 1,034,076
BBBY Bed Bath & Beyond Inc. 44.77 -0.64 -1.41 1,740,903
LH Laboratory Corporation of America Holdings 124.48 0.83 0.67 520,031
HD Home Depot Inc. (The) 129.87 0.40 0.31 3,738,338
XOM Exxon Mobil Corporation 87.04 -0.20 -0.23 9,706,646
PFE Pfizer Inc. 31.63 0.17 0.54 19,007,839
HPQ HP Inc. 15.12 0.06 0.40 8,377,096
BA Boeing Company (The) 152.25 -0.14 -0.09 2,105,577
MRK Merck & Company Inc. (new) 61.13 0.37 0.61 7,993,092
EQT EQT Corporation 71.18 -0.79 -1.10 1,371,760
AOS A.O. Smith Corporation 49.23 0.24 0.49 827,463
AMT American Tower Corporation (REIT) 102.57 1.59 1.57 3,180,981
DCT DCT Industrial Trust Inc 45.46 0.34 0.75 880,573
CIM Chimera Investment Corporation 16.82 0.20 1.20 2,204,053
FE FirstEnergy Corporation 30.57 -0.42 -1.36 5,280,823
WFM Whole Foods Market Inc. 30.76 -0.15 -0.49 3,067,914
MU Micron Technology Inc. 18.79 0.31 1.68 25,887,613
KO Coca-Cola Company (The) 40.36 0.19 0.47 11,176,301
KMX CarMax Inc 57.99 -1.11 -1.88 2,162,841
T AT&T Inc. 38.61 -0.27 -0.69 16,102,161
CAT Caterpillar Inc. 95.14 -1.10 -1.14 5,038,257
CAG ConAgra Foods Inc. 36.89 0.42 1.15 2,924,088
NUVA NuVasive Inc. 63.50 0.09 0.14 655,491
CCI Crown Castle International Corp. (REIT) 81.88 0.35 0.43 2,660,452
CX Cemex S.A.B. de C.V. Sponsored ADR 7.83 0.09 1.16 4,465,291
MSFT Microsoft Corporation 59.25 0.05 0.08 25,515,665
NIHD NII Holdings Inc. 1.75 0.05 2.94 394,274

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