Investors Shrug off Brexit, Markets Rise
Originally published: 07.18.16 by Margot Crabtree
Wall Street began our session on a tumble after Britons voted to leave the European Union. The unexpected turn left investors wondering what is next for Britain, Europe and the worldwide economy.
U.S. markets had their worst day in 10 months and global equities fared even worse as the sell-off was fueled by the uncertain implications of the change. As our trading session ended July 15, 2016, however, investors dismissed the vote and markets turned positive.
The Institute for Supply Management’s (ISM) Chicago factory activity reading for Midwest manufacturing jumped 7.5 points to 56.8 in June, the highest since January, 2015. The ISM’s manufacturing index improved to 53.2 in June, from 51.3 in May, reflecting more stability.
The Federal Reserve said that industrial production increased by 0.6 percent in June, after a drop of 0.3 percent in the previous month. It was best improvement in 10 months.
Alcoa started off the earnings season after the bell on Monday, July 11, and bank earnings followed, boosting investor optimism. Economic data released generally upbeat news. The Commerce Department reported that retail sales rose in June, up 0.6 percent, and the third consecutive month of increases.
The Labor Department said that consumer prices increased 0.2 percent, the same gain as May, fueled by upswings in the cost of gas and rent. The Commerce Department said that consumer spending grew by 0.4 percent in May, moving upward for the second straight month.
The Conference Board said that consumer confidence increased to 98 in June, from 92.4 in May.
“When you go into earnings season with negative bias in the market it bodes well for stocks,” said Quincy Krosby, market strategist at Prudential Financial. “Any positive surprises will force shorts to cover and gives an upbeat tone.”
Exchange |
Symbol |
Company Name |
Price
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| NASD | AAON | AAON, Inc. | 28.11 | 26.02 | 2.09 | 8.03% | 28.70 | 18.85 | 53020 | 1490392.2 |
| NYSE | ABB | ABB Ltd. | 20.00 | 20.33 | -0.33 | -1.62% | 21.64 | 15.74 | 2160000 | 43200000 |
| NYSE | AOS | AO Smith Corp. | 90.96 | 83.64 | 7.32 | 8.75% | 91.90 | 50.09 | 74430 | 6770152.8 |
| NYSE | FIX | Comfort Systems USA, Inc. | 31.93 | 32.00 | -0.07 | -0.22% | 35.00 | 22.96 | 37200 | 1187796 |
| NYSE | DOV | Dover Corp. | 73.11 | 69.67 | 3.44 | 4.94% | 73.49 | 50.91 | 155150 | 11343016.5 |
| NASD | ELON | Echelon Corp. | 4.86 | 4.84 | 0.02 | 0.41% | 7.50 | 4.41 | 4420 | 21481.2 |
| NYSE | DD | E. I. DuPont de Nemours & Co. | 67.16 | 65.76 | 1.40 | 2.13% | 75.72 | 47.11 | 873970 | 58695825.2 |
| NYSE | EME | EMCOR Group, Inc. | 51.87 | 46.85 | 5.02 | 10.72% | 52.49 | 40.98 | 60700 | 3148509 |
| NYSE | EMR | Emerson Electric Co. | 56.23 | 51.96 | 4.27 | 8.22% | 56.82 | 41.25 | 643350 | 36175570.5 |
| NYSE | FCAU | Fiat Chrysler | 6.75 | 6.56 | 0.19 | 2.90% | 10.93 | 5.45 | 1290000 | 8707500 |
| NYSE | F | Ford Motor Co. | 13.57 | 13.01 | 0.56 | 4.30% | 15.84 | 10.44 | 3900000 | 52923000 |
| NYSE | GM | General Motors Co. | 30.77 | 28.86 | 1.91 | 6.62% | 36.88 | 24.62 | 1550000 | 47693500 |
| NYSE | HON | Honeywell International, Inc. | 119.23 | 115.52 | 3.71 | 3.21% | 120.02 | 87.00 | 762120 | 90867567.6 |
| NASD | HDSN | Hudson Technologies, Inc. | 3.50 | 3.21 | 0.29 | 9.03% | 3.95 | 2.45 | 32970 | 115395 |
| NYSE | IR | Ingersoll-Rand Plc | 67.94 | 64.32 | 3.62 | 5.63% | 69.28 | 47.08 | 257460 | 17491832.4 |
| NYSE | JCI | Johnson Controls, Inc. | 43.98 | 44.14 | -0.16 | -0.36% | 48.22 | 33.62 | 639710 | 28134445.8 |
| NYSE | LII | Lennox International Inc. | 148.00 | 135.48 | 12.52 | 9.24% | 149.03 | 105.65 | 43610 | 6454280 |
| NYSE | LXU | LSB Industries, Inc. | 13.42 | 13.39 | 0.03 | 0.22% | 39.23 | 3.68 | 23870 | 320335.4 |
| NYSE | MTW | Manitowoc Co., Inc. | 5.64 | 5.60 | 0.04 | 0.71% | 18.85 | 4.00 | 137020 | 772792.8 |
| NYSE | MLI | Mueller Industries, Inc. | 35.32 | 31.81 | 3.51 | 11.03% | 35.52 | 23.09 | 57130 | 2017831.6 |
| NYSE | NWL | Newell Rubbermaid, Inc. | 48.69 | 48.46 | 0.23 | 0.47% | 50.90 | 33.26 | 456680 | 22235749.2 |
| OTC | NSANY | Nissan Motor Co. Ltd. | 19.67 | 19.24 | 0.43 | 2.23% | 21.92 | 16.57 | 2100000 | 41307000 |
| NASD | NTK | Nortek, Inc. | 86.62 | 50.01 | 36.61 | 73.21% | 92.96 | 33.85 | 16010 | 1386786.2 |
| NASD | OFLX | OmegaFlex, Inc. | 35.67 | 37.43 | -1.76 | -4.70% | 43.20 | 27.51 | 10090 | 359910.3 |
| NYSE | PH | Parker-Hannifin Corp. | 113.68 | 111.62 | 2.06 | 1.85% | 117.78 | 83.32 | 134680 | 15310422.4 |
| NYSE | RBC | Regal-Beloit Corp. | 60.08 | 57.60 | 2.48 | 4.31% | 73.97 | 47.77 | 44730 | 2687378.4 |
| NYSE | ROK | Rockwell Automation | 119.16 | 115.58 | 3.58 | 3.10% | 124.07 | 87.53 | 130260 | 15521781.6 |
| OTC | SIEGY | Siemens Aktiengesellschaft | 104.57 | 103.21 | 1.36 | 1.32% | 112.00 | 86.58 | 808890 | 84585627.3 |
| NYSE | SPXC | SPX Corp. | 16.05 | 14.93 | 1.12 | 7.50% | 17.33 | 7.62 | 41610 | 667840.5 |
| NYSE | TXN | Texas Instruments | 64.85 | 61.69 | 3.16 | 5.12% | 65.26 | 43.49 | 1000000 | 64850000 |
| NYSE | UTX | United Technologies Corp. | 105.50 | 100.54 | 4.96 | 4.93% | 111.47 | 83.39 | 836870 | 88289785 |
| NYSE | WSO | Watsco, Inc. | 138.90 | 133.49 | 5.41 | 4.05% | 144.69 | 106.58 | 27520 | 3822528 |
The HVACR Business Stock Index rose 40.69 points, or 3.44 percent, and closed at 1223.32, the highest close in over a year. Advancing issues dominated declining issues by a 28-to-4 count.
Shares of Nortek surged after the company agreed to a merger with London-based Melrose Industries. The deal, valued at $2.8 billion, priced NTK at $56 per share and was approved by boards of both companies.
“We are very pleased to have reached the proposed agreement with Melrose Industries, which represents a significant premium for our shareholders,” said Nortek’s CEO Michael Clarke. “We believe this transaction will be a positive for our employees and customers alike.”
NTK jumped 36.61 points, or 73.21 percent, and was the top dollar and percentage gainer in the index. Nortek closed at 86.62.
There was no outstanding news attributed to OmegaFlex, the top dollar and percentage loser this month, but index component ABB Ltd faltered, shedding 0.33 points or 1.62 percent. ABB paid a dividend of $0.76 per share to shareholders of record as of July 8. ABB will report earnings on July 21, after production deadlines. ABB ended at 20 even.
Lennox jumped 12.52 points, or 9.24 percent and closed at 148.00. Moody’s Investment Service upped its outlook for LII to “stable” from “negative,” citing the company’s operating results, credit and liquidity. Their rating for Lennox is Baa3. Lennox will report earnings July 18.
Margot Crabtree is president of Trade Trends, Inc., a financial data services provider. She has been offering market analysis with customized stock indices and financial commentaries since 1999. For additional information, visit www.tradetrendsonline.com.