Equities Sector Coverage: Wall Street Tumbles Ahead of Earnings

Sector Recap  |

The Dow Jones Industrial Average declined to 12,710.56 staying below its 50-day simple moving average at 12,985. If this trend continues it will confirm that the Dow peaked at its 52-week high at 13,297.11 set on April 2nd. The NASDAQ’s declined to 2987.00 trending away from its 52-week high at 3134.17 set on March 27th. The 50-day simple moving average was tested at 2989.

Asian stocks were lower on Tuesday on US economic worries. The Nikkei 225 ended their session at 9,538 – down 0.09% on the day. The Hang Seng ended their session at 20,356 – down 1.15% on the day. European stocks traded significantly lower on its first chance to react to Friday’s employment data here in the States. The FTSE 100 ended their session at 5,596 – down 2.24% on the day. The DAX ended their session at 6,606 – down 2.49% on the day. The CAC 40 ended their session at 3,218 – down 3.08% on the day.

The yield on the 10-Year US Treasury declined from 2.067 percent to 1.961 below its 50-day simple moving average at 2.067. Gold rebounded from $1632.5 the Troy ounce to $1664.8 staying below its 50-day and 200-day simple moving averages at $1700.8 and $1689.4, which are converging towards a “death cross”. Crude oil declined from $102.96 per barrel to $100.68 staying below its 50-day simple moving average at $104.04. The euro versus the dollar declined from 1.3143 to 1.3058 staying below its 50-day simple moving average at 1.3212.

Energy

Chevron (CVX) says it found an oil leak in an offshore Brazilian oil field run by Petrobras (PBR) near the site of a November leak that led to criminal and civil charges. Chesapeake Energy (CHK) will be selling $2.6 billion in assets and plans to use the funds to reduce debt and finance development. Clean Energy Fuels (CLNE) is initiated with a Neutral rating at Piper Jaffray. McDermott International (MDR) has been initiated with a Neutral at JP Morgan. InterOil (IOC) has been upgraded to Outperform from Market Perform at Raymond James. Valero Energy (VLO) has been added to the Top Picks Live list at Citigroup. Dow components Chevron (CVX) is down 1.5% in morning trading with Exxon Mobil (XOM) down 1.2%.

Energy Select Sector SPDR (XLE) was trading at $68.26 at 3:30 PM on Tuesday, down 1.94 on the day – down 1.26% year-to-date.

Materials

Thompson Creek Metals (TC) has been upgraded to Hold fro Sell at Deutsche Bank. Dow components - Alcoa (AA) opens the first quarter earnings season after the close today and shares were down 1.25% this morning. DuPont (DD) was lower by 0.4%.

The Materials Select Sector SPDR (XLB) was trading at $35.21 at 3:30 PM on Tuesday, down 2.06% on the day – up 5.10% year-to-date.

Industrials

Foster Wheeler (FWLT) is initiated with an Overweight rating at JP Morgan. Harley-Davidson (HOG) has been upgraded to Buy from Neutral at Citigroup. AeroVironment (AVAV) has been upgraded to Buy from Neutral at Lazard. MDC Holdings (MDC) has been upgraded to Neutral from Underweight at JP Morgan. Chicago Bridge & Iron (CBI) has been removed from the Focus List of favored stocks at JP Morgan, who also downgraded to Neutral from Overweight Jacobs Engineering Group (JEC). Dow components Boeing Co (BA) was down 0.35%, Caterpillar (CAT) lost 1.35%, General Electric (GE) slumped 0.86%, 3M Company (MMM) was lower by 0.8%, and United Technologies (UTX) was lower by 0.8%.

The Industrial Select Sector SPDR (XLI) was trading at $35.63 at 3:30 PM on Tuesday, down 2.03% on the day – up 5.57% year-to-date.

Consumer Discretionary

Priceline.com (PCLN) which recently traded to an all time high is initiated with an Outperform rating at Cowen & Company. Cowen also initiates Expedia (EXPE) with an Outperform. Fortune Brands Home & Security (FBHS) a recent spin-off, is initiated with a Neutral rating at Credit Suisse. Penn National Gaming (PENN) is initiated with an In-line rating by Imperial Capital, who assigned a $40 price target. Lions Gate Entertainment (LGF) on the strength of movies Mad Men and The Hunger Games has been upgraded to Overweight at from Equal Weight at Evercore Partners. Dow Components Disney (DIS) was lower by 1.14%, and McDonalds (MCD) slipped by 0.4%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.50 at 3:30 PM on Tuesday, down 2.47% on the day – up 11.48% year-to-date.

Consumer Staples

Dow components Home Depot (HD) was lower by 0.5%, Kraft (KFT) fell by 0.6%, Coca Cola (KO) slipped by 0.4%, Procter & Gamble (PG) fell by 0.4% and Wal-Mart (WMT) gained 0.35% in morning trading.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.46 at 3:30 PM on Tuesday, down 0.83% on the day – up 2.99% year-to-date.

Health Care

Activist investor Carl Icahn has blasted Amylin's (AMLN) board for passing on a takeover offer from Bristol-Myers Squibb. Now is preparing to file another suit if Amylin does not provide copies of its books and records by Wednesday. Jazz Pharmaceuticals (JAZZ) are initiated with a Buy rating at Citigroup. Repros Therapeutics (RPRX) is a small cap drug company with a Strong Buy rating and a $6 price target at Ascendiant Capital Markets. Patterson Companies (PDCO) is rated a Buy and $38 price target at Auriga, who has a Hold rating on Henry Schein Inc (HSIC). Allos Therapeutics (ALTH) has been downgraded to Hold from Buy at Brean Murray. Halozyme Therapeutics (HALO) has been downgraded to Hold from Buy at Jefferies. Salix Pharmaceuticals (SLXP) are downgraded to Hold from Buy at Auriga. Dow Components Johnson & Johnson (JNJ) lost 0.6%, Merck (MRK) was flat and Pfizer (PFE) picked up 1.6%.

The Health Care Select Sector SPDR (XLV) was trading at $36.64 at 3:30 PM on Tuesday, down 1.08% on the day – up 5.62% year-to-date.

Financials

HSBC (HBC) is in talks for the possible sale of its Korean retail banking unit and wealth management business to the Korea Development Bank. HSBC is also seeking to sell its Pakistan operations in an effort to divest non-core assets. The Consumer Financial Protection Bureau plans new rules that would force mortgage servicers to be far more transparent about the costs to homeowners with regard to interest rate changes. These rules, if approved, would affect the “too big to fail” banks Wells Fargo (WFC), Citigroup (C), Bank of America (BAC) and JPMorgan (JPM). Raymond James Financial (RJF) is resumed with an Outperform rating at Wells Fargo. American International Group (AIG) has been upgraded to Outperform from Market Perform with Wells Fargo. Bryn Mawr Bank (BMTC) has been downgraded to Neutral from Buy at Guggenheim. First Horizon (FHN) has been downgraded to Underperform from Market Perform at FBR Capital. Dow Components American Express (AXP) was fractionally higher, Bank of America (BAC) slipped by 0.12%, and JP Morgan (JPM) was down 0.8%.

The Financial Select Sector SPDR (XLF) was trading at $14.98 at 3:30 PM on Tuesday, down 2.09% on the day – up 15.23% year-to-date.

Information Technology

Sony (SNE) reported a mush greater than expected annual loss of $6.4 billion, the company’s fourth consecutive annual loss, and shares were down 8.0% premarket. TiVo Inc (TIVO) is initiated with a Neutral rating at JP Morgan. Dell Inc (DELL), Infinera (INFN), and Calix Networks (CALX) are each upgraded to Equal Weight from Underweight at Morgan Stanley. Dow Components - Cisco Systems (CSCO) slipped by 0.4%, Hewlett-Packard (HPQ) tacked on 1.7%, IBM (IBM) slid by 0.2%, Intel Corp (INTC) gained 0.2%, and Microsoft (MSFT) slumped 0.8%.

The Technology Select Sector SPDR (XLK) was trading at $29.53 at 3:30 PM on Tuesday, down 1.44% on the day – up 16.03% year-to-date. (the best performing sector).

Telecommunication Services

Stocks that declined by more than 3.0% included; Cbeyond Inc (CBEY), General Communications (GNCMA), and USA Mobility (USMO). Dow components AT&T (T) fell 1.0% while Verizon (VZ) lost 0.7%.

The NASDAQ Telecommunications Index (IXTC) was trading at $207.12 at 3:30 PM on Tuesday, down 1.91% on the day – up 5.17% year-to-date.

Utilities

Veolia Environnement (VE) has been upgraded to Buy from Neutral at Nomura. Dominion Resources (D) was down 0.9%, Edison International (EIX) was down 1.2%, First Energy (FE) was down 1.0%, and PG&E Corp (PCG) was down 0.9%.

The Utilities Select Sector SPDR (XLU) was trading at $34.25 at 3:30 PM on Tuesday, down 1.33% on the day – down 4.81% year-to-date (the weakest performing sector).

STOCKS: CVX, XOM, CHK, PBR, CLNE, MDR, IOC, VLO, AA, DD, TC, BA, CAT, GE, MMM, UTX, FWLT, HOG, AVAV, MDC, CBI, JEC, BA, CAT, GE, MMM, UTX, PCLN, EXPE, FBHS, PENN, LGF, DIS, MCD, HD, KFT, KO, PG, WMT, JNJ, MRK, PFE, AMLN, JAZZ, RPRX, PDCO, HSIC, ALTH, HALO, SLXP, AXP, BAC, JPM, HBC, RJF, AIG, BMTC, FHN, SNE, DELL, INFN, CALX, CSCO, HPQ, IBM, INTC, MSFT, T, VZ, CBEY, GNCMA, USMO, VE, D, EIX, FE, PCG

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 188.94 -3.23 -1.68 2,725,287 Trade
AVAV AeroVironment Inc. 73.80 0.19 0.26 214,429 Trade
PG Procter & Gamble Company (The) 92.01 0.86 0.94 7,834,588 Trade
GE General Electric Company 8.73 -0.17 -1.91 93,992,735 Trade
HOG Harley-Davidson Inc. 36.98 0.14 0.38 2,124,308 Trade
CVX Chevron Corporation 112.12 0.40 0.36 4,210,415 Trade
PCG Pacific Gas & Electric Co. 6.91 -1.47 -17.54 172,921,776 Trade
HSIC Henry Schein Inc. 81.14 1.20 1.50 1,908,957 Trade
PBR Petroleo Brasileiro S.A.- Petrobras 15.24 -0.09 -0.59 12,806,823 Trade
LGF Lions Gate Entertainment Corporation n/a n/a n/a 0 Trade
JNJ Johnson & Johnson 129.36 1.08 0.84 5,192,140 Trade
JEC Jacobs Engineering Group Inc. 59.96 -0.13 -0.22 824,166 Trade
AA Alcoa Corporation 28.90 0.11 0.38 3,765,501 Trade
INTC Intel Corporation 48.60 0.25 0.52 22,424,903 Trade
VLO Valero Energy Corporation 78.77 -0.18 -0.23 3,249,954 Trade
D Dominion Energy Inc. 68.88 0.91 1.34 5,780,913 Trade
IOC InterOil Corporation n/a n/a n/a 0 Trade
EFGUD EFGUD n/a n/a n/a 0 Trade
PDCO Patterson Companies Inc. 22.13 0.33 1.51 745,040 Trade
HALO Halozyme Therapeutics Inc. 16.00 0.38 2.43 556,611 Trade
EXPE Expedia Group Inc. 116.73 1.52 1.32 1,291,583 Trade
EIX Edison International 55.05 -3.10 -5.33 5,251,275 Trade
JAZZ Jazz Pharmaceuticals plc 128.00 0.75 0.59 1,122,772 Trade
INFN Infinera Corporation 4.29 0.13 3.13 1,040,181 Trade
PCLN BKNG Calfrac Well Services Ltd. n/a n/a n/a n/a
AXP American Express Company 97.99 -0.45 -0.46 5,795,081 Trade
RJF Raymond James Financial Inc. 77.55 0.04 0.05 1,550,482 Trade
FBHS Fortune Brands Home & Security Inc. 42.04 -0.67 -1.57 1,270,104 Trade
UTX United Technologies Corporation 111.06 0.21 0.19 2,797,248 Trade
CSCO Cisco Systems Inc. 44.02 0.81 1.87 17,742,732 Trade
MDR McDermott International Inc. 8.74 0.13 1.51 2,605,992 Trade
VZ Verizon Communications Inc. 58.10 0.07 0.12 10,057,967 Trade
FHN First Horizon National Corporation 14.39 0.08 0.56 2,864,670 Trade
BAC Bank of America Corporation 26.55 0.18 0.68 80,527,008 Trade
MCD McDonald's Corporation 181.02 -0.20 -0.11 3,857,532 Trade
MDC M.D.C. Holdings Inc. 30.61 0.25 0.82 383,406 Trade
CALX Calix Inc 9.53 0.65 7.32 1,076,785 Trade
TC TuanChe Limited 6.75 -0.42 -5.86 45,820 Trade
PFE Pfizer Inc. 42.73 0.36 0.85 24,474,837 Trade
AIG American International Group Inc. 42.45 0.45 1.07 5,341,365 Trade
HPQ HP Inc. 21.01 0.22 1.06 8,839,353 Trade
MRK Merck & Company Inc. (new) 74.50 1.13 1.54 12,501,997 Trade
BMTC Bryn Mawr Bank Corporation 36.47 0.31 0.86 23,495 Trade
FE FirstEnergy Corp. 38.12 0.12 0.32 5,188,628 Trade
KO Coca-Cola Company (The) 47.57 0.42 0.89 11,342,944 Trade
SNE Sony Corporation 49.84 1.42 2.93 985,782 Trade
T AT&T Inc. 30.60 -0.02 -0.07 26,729,017 Trade
CAT Caterpillar Inc. 130.69 -1.11 -0.84 3,223,776 Trade
PENN Penn National Gaming Inc. 23.59 -0.13 -0.55 1,589,459 Trade
MSFT Microsoft Corporation 105.01 2.96 2.90 31,547,442 Trade
CHK Chesapeake Energy Corporation 2.85 0.12 4.40 34,298,117 Trade
RPRX Repros Therapeutics Inc. n/a n/a n/a 0 Trade
CLNE Clean Energy Fuels Corp. 1.95 -0.01 -0.51 367,528 Trade
WMT Walmart Inc. 96.25 1.30 1.37 6,906,364 Trade
IBM International Business Machines Corporation 121.73 1.34 1.11 3,507,505 Trade
JPM JP Morgan Chase & Co. 101.68 0.74 0.73 26,502,844 Trade
DIS The Walt Disney Company 111.76 -0.66 -0.59 9,776,497 Trade
HD Home Depot Inc. (The) 176.47 -2.34 -1.31 5,000,342 Trade
XOM Exxon Mobil Corporation 71.67 0.04 0.06 10,152,558 Trade
BA The Boeing Company 352.24 1.88 0.54 2,939,498 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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