Equities Sector Coverage: Wall Street Tumbles Lower

Sector Recap  |

The National Association of Realtors reported that contracts for pending existing home sales fell 5.5% in April, missing estimates calling for a 0.1% increase. The Dow Jones Industrial Average traded down to 12,396.40 on Wednesday. The NASDAQ traded down to 2825.64 on Wednesday, but traded above 2840 in the final half hour of trading.

Asian stocks were lower on Wednesday. The Nikkei 225 ended the day at 8,633 – down 0.28%. The Hang Seng ended the day at 18,690 – down 1.92%. European exchanges traded lower on Wednesday on Spain’s debt fears. The FTSE 100 ended the day at 5,297 – down 1.74%. The DAX ended the day at 6,281 – down 1.81%. The CAC 40 ended the day at 3,016 – down 2.24%. The yield on the 10-Year US Treasury traded down from 1.741 percent to 1.617, which is a new all time low.

Gold traded down from $1555.8 the Troy ounce to $1530.4, then rebounded to $1569.0, well below the “Death Cross” 50-day and 200-day simple moving averages are at $1626.8 and $1690.5. Crude oil traded down from $90.92 per barrel to $87.35 well below its 200-day simple moving average at $96.48. The euro versus the dollar traded down from 1.2504 to 1.2365 well below its 50-day simple moving average at 1.3026.

Energy

Yingli Green Energy (YGE) missed Q1 EPS estimates by three cents with better than expected revenue. Anadarko Petroleum (APC) and Noble Corp. (NE) settled their legal dispute over the termination of a drilling rig lease after the 2010 Gulf of Mexico oil spill. Patriot Coal (PCX) has been downgraded to Fair Value from Buy at CRT Capital. Sunoco Logistics (SXL) has been upgraded to Neutral from Underperform by Bank of America Merrill Lynch. Dow components – Chevron (CVX) down 2.25%, Exxon Mobil (XOM) down 2.29%.

Energy Select Sector SPDR (XLE) was trading at $64.29 at 3:30 PM on Wednesday, down 2.91% on the day – down 7.00% year-to-date.

Materials

Agnico-Eagle Mines (AEM) has been downgraded to Hold from Buy at Dahlman Rose due to valuation concerns. Sterne Agee begins coverage with Neutral ratings for Agnico-Eagle Mines (AEM), Barrick Gold (ABX), Hecla Mining (HL), and Pan American Silver (PAAS), and Buy ratings on Gold Resource (GORO), Coeur d’Alene Mines (CDE), and Newmont Mining (NEM). Dow components – Alcoa (AA) down 3.26%, DuPont (DD) down 1.2%.

The Materials Select Sector SPDR (XLB) was trading at $34.03 at 3:30 PM on Wednesday, down 1.59% on the day – up 1.58% year-to-date.

Industrials

General Electric (GE) began an $80 million research and development center in China and plans to open others, as GE gets closer to customers in faster-growing regions. Delta Air Lines (DAL), United Continental (UAL), and US Airways (LCC) are all initiated with Outperform ratings at Imperial Capital.Dow components – Boeing Co (BA) down 1.21%, Caterpillar (CAT) down 2.31%, General Electric (GE) down 1.34%, 3M Company (MMM) down 1.45%, United Technologies (UTX) down 1.40%.

The Industrial Select Sector SPDR (XLI) was trading at $34.86 at 3:30 PM on Wednesday, down 1.50%% on the day – up 3.29% year-to-date.

Consumer Discretionary

Pearson (PSO) and McGraw-Hill (MHP) plus other publishers should benefit from the introduction national curriculum for public schools in 45 states. The will increase demand for new textbooks, tests and teaching materials, and could be worth $1 to $8 billion, if states can afford the costs. Sony (SNE) and Panasonic (PC) are leading contenders to take an equity stake in Olympus (OCPNY.PK). Dow Components – Disney (DIS) down 0.16%, Home Depot down 0.42%, McDonalds (MCD) down 0.34%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.27 at 3:30 PM on Wednesday, down 1.39% on the day – up 10.89% year-to-date.

Consumer Staples

Dunkin' Brands (DNKN) will open 350 to 450 new stores next year outside the US in a big bet that global consumers still demand new American fast food options. Teavana Holdings (TEA) reported in-line Q1 EPS estimates with a miss on the revenue line. The Fresh Market (TFM) beat Q1 EPS estimates by a nickel with better than expected revenue. Jos. A. Bank Clothiers (JOSB) missed Q1 EPS estimates by nine cents with a miss on the revenue line. Pep Boys (PBY) shares declined 12.5% in after hours trading on Tuesday after announcing that its planned sale to P-E firm Gores Group has been called off. Dow components – Kraft (KFT) down 0.83%, Coca Cola (KO) down 0.48%, Procter & Gamble (PG) down 0.75%, Wal-Mart (WMT) down 0.12%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.85 at 3:30 PM on Wednesday, down 0.82% on the day – up 4.19% year-to-date.

Health Care

A Delaware court Upheld two patents in favor of Pronova's heart drug Lovaza in a ruling against Par Pharmaceutical (PRX) and Teva Pharmaceutical (TEVA). The ruling prevents Par and Teva from selling generic Lovaza to lower very high levels of triglycerides in the bloodstream. Raptor Pharmaceutical (RPTP) said it acquired exclusive tights from McGill University to intellectual property related to a potential malaria treatment. Dow Components – Johnson & Johnson (JNJ) down 0.72%, Merck (MRK) down 0.52%, Pfizer (PFE) down 0.33%.

The Health Care Select Sector SPDR (XLV) was trading at $36.31 at 3:30 PM on Wednesday, down 0.63% on the day – up 4.67% year-to-date.

Financial

Refinancing activity is about half of what it was during the boom years of the housing market. Wells Fargo (WFC), one of the four “too big to fail” banks issues one in three US mortgages. WFC reported a year over year gain of 127% on mortgage originations in the first quarter. American International Group (AIG) has been upgraded to Buy from Hold at Sandler O’Neill. Lloyds (LYG) has been upgraded to Neutral from Underweight at JP Morgan. Dow Components – American Express (AXP) down 1.41%, Bank of America (BAC) down 2.55%, JP Morgan Chase (JPM) down 1.61%, Travelers (TRV) down 1.20%.

The Financial Select Sector SPDR (XLF) was trading at $13.96 at 3:30 PM on Wednesday, down 1.83% on the day – up 7.38% year-to-date.

Information Technology

Research in Motion (RIMM) traded down 5.6% premarket after forecasting an operating loss for FQ1, and announcing more job cuts. RIM hired JPMorgan and RBC to assist in finding a strategic plan that will cover licensing and partnership opportunities. Sony (SNE) and Panasonic (PC) are leading contenders to take an equity stake in Olympus (OCPNY.PK). Research In Motion (RIMM) has been upgraded to Market Perform from Underperform at JMP Securities. Cirrus Logic (CRUS) rallied on Tuesday on speculation that Apple (AAPL) will use Cirrus' audio codec chips in its rumored TV. Apple already uses Cirrus' chips in the iPhone and iPad, which accounts for a significant portion of CRUS revenue. Dow Components – Cisco Systems (CSCO) down 1.02%, Hewlett-Packard (HPQ) down 0.26%, IBM (IBM) down 0.70%, Intel Corp (INTC) up 0.23%, Microsoft (MSFT) down 0.44%.

The Technology Select Sector SPDR (XLK) was trading at $28.11 at 3:30 PM on Wednesday, down 0.46% on the day – up 10.45% year-to-date.

Telecommunication Services

Research in Motion (RIMM) traded down 5.6% premarket after forecasting an operating loss for FQ1, and announcing more job cuts. RIM hired JPMorgan and RBC to assist in finding a strategic plan that will cover licensing and partnership opportunities. Research In Motion (RIMM) has been upgraded to Market Perform from Underperform at JMP Securities. Ciena (CIEN) has been initiated with a Buy rating at Needham, on improving margins that should deliver value even in these economic conditions. Dow components – AT&T (T) up 0.33%, Verizon (VZ) down 0.91%.

The NASDAQ Telecommunications Index (IXTC) was trading at $180.28 at 3:30 PM on Wednesday, down 1.34% on the day – down 8.45% year-to-date.

Utilities

Dominion Resources (D) down 1.09%, Edison International (EIX) down 0.86%, First Energy (FE) down 0.98%, PG&E Corp (PCG) down 0.91%, Southern Company (SO) up 0.11%.

The Utilities Select Sector SPDR (XLU) was trading at $35.69 at 3:30 PM on Wednesday, down 0.56% on the day – down 0.81% year-to-date.

STOCKS: CVX, XOM, YGE, APC, NE, PCX, SXL, AA, DD, AEM, ABX, HL, PAAS, GORO, CDE, NEM, BA, CAT, GE, MMM, UTX, DAL, UAL, LCC, DIS, HD, MCD, PSO, MHP, SNE, PC, OCPNY.PK, KFT, KO, PG, WMT, DNKN, TEA, TFM, JOSB, PBY, JNJ, MRK, PFE, PRX, TEVA, RPTP, AXP, BAC, JPM, TRV, WFC, AIG, LYG, CSCO, HPQ, IBM, INTC, MSFT, RIMM, CRUS, AAPL, T, VZ, CIEN, D, EIX, FE, PCG, SO

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
GORO Gold Resource Corporation 3.30 0.19 6.11 1,019,059
MMM 3M Company 155.85 -5.03 -3.13 4,224,008 Trade
UAL United Airlines Holdings Inc. 82.53 -3.03 -3.54 3,674,673 Trade
PG Procter & Gamble Company (The) 117.32 -2.10 -1.76 7,336,907 Trade
GE General Electric Company 7.97 -0.22 -2.69 128,643,149 Trade
CVX Chevron Corporation 115.18 -2.55 -2.17 7,654,485 Trade
SO Southern Company (The) 57.68 -0.77 -1.32 4,926,275 Trade
PCG Pacific Gas & Electric Co. 11.04 -0.64 -5.48 7,666,429 Trade
JNJ Johnson & Johnson 127.73 -3.54 -2.70 15,714,753 Trade
AA Alcoa Corporation 17.48 -0.57 -3.16 3,236,669 Trade
INTC Intel Corporation 44.96 -1.82 -3.89 32,817,083 Trade
D Dominion Energy Inc. 75.94 -0.58 -0.76 3,525,330 Trade
TRV The Travelers Companies Inc. 144.73 -3.08 -2.08 1,430,533 Trade
DTLK Datalink Corporation n/a n/a n/a 0 Trade
DAL Delta Air Lines Inc. 56.20 -1.76 -3.04 5,922,900 Trade
EIX Edison International 72.11 -0.72 -0.99 1,905,730 Trade
AXP American Express Company 117.76 -4.51 -3.69 4,800,393 Trade
UTX United Technologies Corporation 123.42 -4.54 -3.55 3,482,050 Trade
AEM Agnico Eagle Mines Limited 61.58 2.20 3.71 1,788,703 Trade
CSCO Cisco Systems Inc. 46.61 -1.57 -3.26 25,881,999 Trade
VZ Verizon Communications Inc. 55.92 -0.86 -1.51 13,203,639 Trade
ABX GOLD Barrick Gold Corporation (BC) n/a n/a n/a 0
DNKN Dunkin' Brands Group Inc. 82.11 -1.06 -1.27 436,341 Trade
SXL Sunoco Logistics Partners LP representing limited n/a n/a n/a 0
BAC Bank of America Corporation 26.47 -0.72 -2.65 81,898,762 Trade
CRUS Cirrus Logic Inc. 52.99 -1.94 -3.53 1,038,090 Trade
MCD McDonald's Corporation 214.66 -4.83 -2.20 3,662,483 Trade
PSO Pearson Plc 9.92 -0.09 -0.90 155,447 Trade
HL Hecla Mining Company 1.67 0.09 5.70 7,985,166 Trade
PAAS Pan American Silver Corp. 17.45 0.75 4.49 3,634,405 Trade
YGE Yingli Green Energy Holding Company Limited ADR n/a n/a n/a n/a
CIEN Ciena Corporation 40.01 -1.18 -2.86 1,962,542 Trade
RPTP Raptor Pharmaceutical Corp. n/a n/a n/a 0 Trade
NE Noble Corporation (UK) 1.29 -0.09 -6.52 5,964,809 Trade
LYG Lloyds Banking Group Plc American Depositary Shares 2.38 -0.01 -0.42 7,013,524 Trade
PFE Pfizer Inc. 34.34 -0.74 -2.11 26,344,200 Trade
TEVA Teva Pharmaceutical Industries Limited American Depositary Shares 7.05 -0.21 -2.89 15,311,489 Trade
TFM Fresh Market Inc (The) n/a n/a n/a 0 Trade
WFC Wells Fargo & Company 44.42 -1.20 -2.63 21,153,801 Trade
AIG American International Group Inc. 52.49 -1.26 -2.34 3,712,184 Trade
HPQ HP Inc. 17.81 -1.12 -5.92 26,399,960 Trade
MRK Merck & Company Inc. (new) 84.94 -1.78 -2.05 10,122,859 Trade
PBY Prospect Capital Corporation 6.25% Notes due 2028 25.84 -0.15 -0.58 5,421 Trade
FE FirstEnergy Corp. 44.99 -0.71 -1.55 5,017,381 Trade
KO Coca-Cola Company (The) 53.74 -0.75 -1.38 14,160,658 Trade
SNE Sony Corporation 53.84 -0.93 -1.70 1,313,241 Trade
T AT&T Inc. 34.82 -0.57 -1.61 33,864,032 Trade
CAT Caterpillar Inc. 114.06 -3.83 -3.25 6,105,282 Trade
NEM Newmont Goldcorp Corporation 39.30 0.81 2.10 10,360,512 Trade
MSFT Microsoft Corporation 133.39 -4.39 -3.19 38,515,386 Trade
CDE Coeur Mining Inc. 5.14 0.17 3.42 8,709,608 Trade
WMT Walmart Inc. 110.83 -1.08 -0.97 6,237,251 Trade
IBM International Business Machines Corporation 129.57 -4.75 -3.54 4,818,759 Trade
AAPL Apple Inc. 202.64 -9.82 -4.62 46,882,843 Trade
JPM JP Morgan Chase & Co. 106.02 -2.70 -2.48 14,764,096 Trade
DIS The Walt Disney Company 131.67 -4.41 -3.24 10,197,685 Trade
HD Home Depot Inc. (The) 217.47 -3.55 -1.61 5,770,379 Trade
XOM Exxon Mobil Corporation 67.49 -2.08 -2.99 15,373,737 Trade
BA The Boeing Company 356.01 1.60 0.45 11,527,786 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     

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