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 221.32 2.08 0.95 1,611,929 Trade
RHT Red Hat Inc. 121.79 0.19 0.16 934,059 Trade
ASML ASML Holding N.V. 175.22 -0.80 -0.45 1,040,486 Trade
SDRL Seadrill Limited (Bermuda) 0.29 0.00 1.69 2,702,879 Trade
PG Procter & Gamble Company (The) 88.25 -3.34 -3.65 19,759,227 Trade
GE General Electric Co 23.83 0.25 1.06 188,351,082 Trade
CVX Chevron Corporation 118.64 0.44 0.37 4,855,550 Trade
SO Southern Company (The) 52.21 0.21 0.40 4,096,215 Trade
PCG Pacific Gas & Electric Co. 57.86 0.86 1.51 7,737,698 Trade
SONC Sonic Corp. 25.12 -0.47 -1.84 874,341 Trade
JNJ Johnson & Johnson 142.40 0.36 0.25 5,536,486 Trade
WMT Wal-Mart Stores Inc. 87.44 1.04 1.20 8,200,163 Trade
AA Alcoa Inc. 47.93 1.39 2.99 4,199,187 Trade
INTC Intel Corporation 40.43 0.34 0.85 17,556,315 Trade
IBM International Business Machines Corp 162.07 1.17 0.73 7,816,482 Trade
CNP CenterPoint Energy Inc (Holding Co) 29.70 -0.05 -0.17 1,489,340 Trade
D Dominion Resources Inc. 80.00 0.05 0.06 2,178,911 Trade
NOV National Oilwell Varco Inc. 34.09 0.01 0.03 2,460,785 Trade
TRV The Travelers Companies Inc. 133.32 0.15 0.11 1,821,870 Trade
MDAS MedAssets Inc. n/a n/a n/a 0 Trade
GPS:CA BSM Technologies Inc. 1.26 -0.02 -1.56 685,851
EIX Edison International 79.60 0.13 0.16 1,784,395 Trade
JAZZ Jazz Pharmaceuticals plc 144.05 -0.95 -0.66 296,971 Trade
MET MetLife Inc. 53.28 0.29 0.55 3,711,149 Trade
JPM JP Morgan Chase 99.51 1.40 1.43 15,160,760 Trade
AXP American Express Company 92.09 0.19 0.21 4,220,047 Trade
UTX United Technologies Corporation 120.89 1.40 1.17 2,001,202 Trade
TJX TJX Companies Inc. (The) 72.07 0.66 0.92 2,947,459 Trade
BIP Brookfield Infrastructure Partners LP Limited Part 43.52 -0.08 -0.18 185,628 Trade
CSCO Cisco Systems Inc. 34.25 0.50 1.48 24,055,435 Trade
LUV Southwest Airlines Company 59.37 0.74 1.26 4,883,098 Trade
AES The AES Corporation 11.13 -0.16 -1.42 3,764,294 Trade
DIS Walt Disney Company (The) 99.40 0.39 0.39 4,416,913 Trade
PAY Verifone Systems Inc. 20.06 0.06 0.30 1,102,487 Trade
VZ Verizon Communications Inc. 49.53 0.32 0.65 15,852,032 Trade
SZYM Solazyme Inc. n/a n/a n/a 0
VFC V.F. Corporation 66.37 1.02 1.56 4,395,182 Trade
CLB Core Laboratories N.V. 89.49 0.18 0.20 507,553 Trade
BAC Bank of America Corporation 27.17 0.59 2.22 83,083,476 Trade
MCD McDonald\'s Corporation 166.30 -0.20 -0.12 5,549,338 Trade
DD E.I. du Pont de Nemours and Co. 83.93 0.00 0.00 0 Trade
DGX Quest Diagnostics Incorporated 95.10 1.87 2.01 1,365,394 Trade
BBBY Bed Bath & Beyond Inc. 21.47 0.27 1.27 5,742,780 Trade
LH Laboratory Corporation of America Holdings 151.68 0.36 0.24 536,574 Trade
HD Home Depot Inc. (The) 163.43 0.19 0.12 4,055,333 Trade
XOM Exxon Mobil Corporation 83.11 0.37 0.45 9,181,179 Trade
PFE Pfizer Inc. 36.42 0.18 0.50 16,966,184 Trade
HPQ HP Inc. 22.02 0.06 0.27 7,862,306 Trade
BA Boeing Company (The) 264.75 5.71 2.20 3,909,856 Trade
MRK Merck & Company Inc. (new) 63.88 0.13 0.20 9,961,066 Trade
EQT EQT Corporation 63.35 0.29 0.46 1,801,442 Trade
AOS A.O. Smith Corporation 61.60 0.80 1.32 530,926 Trade
AMT American Tower Corporation (REIT) 139.07 0.68 0.49 1,851,434 Trade
DCT DCT Industrial Trust Inc 58.43 -0.28 -0.48 347,638 Trade
CIM Chimera Investment Corporation 19.14 -0.09 -0.47 506,005 Trade
FE FirstEnergy Corporation 32.13 -0.17 -0.53 2,399,121 Trade
WFM Whole Foods Market Inc. n/a n/a n/a 0 Trade
MU Micron Technology Inc. 41.50 0.19 0.46 35,859,970 Trade
KO Coca-Cola Company (The) 46.38 -0.21 -0.45 9,491,224 Trade
KMX CarMax Inc 75.14 0.30 0.40 1,140,806 Trade
T AT&T Inc. 35.54 -0.15 -0.42 36,985,648 Trade
CAT Caterpillar Inc. 131.36 0.59 0.45 3,051,250 Trade
CAG ConAgra Foods Inc. 33.91 0.15 0.44 4,001,591 Trade
NUVA NuVasive Inc. 55.05 0.48 0.88 962,940 Trade
CCI Crown Castle International Corp. (REIT) 104.99 1.77 1.71 3,267,658 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 7.96 -0.13 -1.61 9,926,916 Trade
MSFT Microsoft Corporation 78.81 0.90 1.16 22,520,492 Trade
NIHD NII Holdings Inc. 0.46 -0.01 -2.13 527,631 Trade

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