Wall Street Roughed up to Begin 2016
Originally published: 01.21.15 by Margot Crabtree
Oil rose in the first week of our session, but the tumbling energy sector fell and fell again. As our trading session ended Jan. 15, 2016, it capped the worst two-week start to a year ever.
The Commerce Department reported that incomes improved 0.3 percent in November after rising 0.4 percent. Wages and salaries also increased, as did consumer spending in the month, up 0.3 percent, in line with expectations. Also announced was an increase in sales of new homes in November.
The Commerce Department said that number was up 4.3 percent; October's figures were revised sharply downward. The Commerce Department said that overall construction spending fell 0.4 percent in November, the first decline since June 2014.
December's consumer sentiment index from the University of Michigan's grew to 92.6 from 91.3. It was the highest level since July. The Conference Board's December consumer confidence index increased to 96.5, from November's 92.6.
Despite an improving labor market, it was the worst year for the stock market since 2008. Wall Street hit market highs early in the year, but those gains evaporated in August with a slowdown in the Chinese economy and the world oversupply of oil, which hammered all stocks. In the face of economic news worldwide, the U.S. added a robust 292,000 jobs in December, and the Labor Department said that unemployment remained at 5 percent.
The Institute for Supply Management said that its index of factory activity slid below 50 in the last two months of the year. A number below 50 in the index indicates contraction. Matters remained dismal in our final week, with little going on except China worries and the fall of oil, down to its lowest level in 12 years.
Earnings season began with Alcoa on a down-note, and there was little optimism from investors on that score. But the primary drumbeats this session were on oil and China.
"Initially when oil was down, the convenient line was 'Well, it's good for the other nine sectors,'" said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "That tune has changed. Now, it's a contagion to the other nine sectors. It's a contagion to Main Street and Wall Street."
Exchange |
Symbol |
Company Name |
Price
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| NASD | AAON | AAON, Inc. | 19.83 | 23.38 | -3.55 | -15.18% | 25.34 | 18.85 | 54090 | 1072604.7 |
| NYSE | ABB | ABB Ltd. | 16.06 | 17.91 | -1.85 | -10.33% | 23.66 | 15.98 | 2220000 | 35653200 |
| NYSE | ARG | Airgas, Inc. | 138.30 | 136.66 | 1.64 | 1.20% | 139.22 | 86.09 | 72200 | 9985260 |
| NYSE | AOS | AO Smith Corp. | 63.51 | 77.75 | -14.24 | -18.32% | 81.15 | 50.09 | 74890 | 4756263.9 |
| NYSE | FIX | Comfort Systems USA, Inc. | 28.09 | 30.93 | -2.84 | -9.18% | 35.00 | 15.58 | 37290 | 1047476.1 |
| NYSE | DOV | Dover Corp. | 52.90 | 62.11 | -9.21 | -14.83% | 78.21 | 52.70 | 154970 | 8197913 |
| NASD | ELON | Echelon Corp. | 5.15 | 5.54 | -0.39 | -7.04% | 15.80 | 4.80 | 4420 | 22763 |
| NYSE | DD | E. I. DuPont de Nemours & Co. | 54.09 | 66.50 | -12.41 | -18.66% | 76.59 | 47.11 | 876410 | 47405016.9 |
| NYSE | EME | EMCOR Group, Inc. | 43.66 | 48.71 | -5.05 | -10.37% | 52.37 | 39.83 | 62720 | 2738355.2 |
| NYSE | EMR | Emerson Electric Co. | 43.09 | 45.22 | -2.13 | -4.71% | 62.75 | 42.17 | 651370 | 28067533.3 |
| NYSE | FCAU | Fiat Chrysler | 7.34 | 8.88 | -1.54 | -17.36% | 11.24 | 7.15 | 1290000 | 9468600 |
| NYSE | F | Ford Motor Co. | 11.97 | 13.87 | -1.90 | -13.70% | 16.74 | 10.44 | 3900000 | 46683000 |
| NYSE | GM | General Motors Co. | 29.57 | 34.54 | -4.97 | -14.39% | 38.99 | 24.62 | 1540000 | 45537800 |
| NYSE | HON | Honeywell International, Inc. | 97.26 | 98.47 | -1.21 | -1.23% | 107.41 | 87.00 | 770690 | 74957309.4 |
| NASD | HDSN | Hudson Technologies, Inc. | 2.77 | 2.85 | -0.08 | -2.81% | 4.75 | 2.45 | 32800 | 90856 |
| NYSE | IR | Ingersoll-Rand Plc | 51.74 | 53.50 | -1.76 | -3.29% | 70.93 | 49.74 | 261050 | 13506727 |
| NYSE | JCI | Johnson Controls, Inc. | 34.71 | 39.38 | -4.67 | -11.86% | 54.52 | 33.62 | 647910 | 22488956.1 |
| NYSE | LII | Lennox International Inc. | 115.77 | 129.22 | -13.45 | -10.41% | 138.57 | 93.16 | 45060 | 5216596.2 |
| NYSE | LXU | LSB Industries, Inc. | 5.20 | 5.49 | -0.29 | -5.28% | 47.33 | 4.60 | 22810 | 118612 |
| NYSE | MTW | Manitowoc Co., Inc. | 12.83 | 14.31 | -1.48 | -10.34% | 22.91 | 12.55 | 136590 | 1752449.7 |
| NYSE | MLI | Mueller Industries, Inc. | 23.83 | 28.10 | -4.27 | -15.20% | 37.18 | 23.09 | 57160 | 1362122.8 |
| NYSE | NWL | Newell Rubbermaid, Inc. | 37.13 | 44.13 | -7.00 | -15.86% | 50.90 | 36.10 | 267200 | 9921136 |
| OTC | NSANY | Nissan Motor Co. Ltd. | 18.41 | 20.37 | -1.96 | -9.62% | 21.92 | 16.65 | 2100000 | 38661000 |
| NASD | NTK | Nortek, Inc. | 37.52 | 42.08 | -4.56 | -10.84% | 92.96 | 35.40 | 16260 | 610075.2 |
| NASD | OFLX | OmegaFlex, Inc. | 29.00 | 39.60 | -10.60 | -26.77% | 43.20 | 23.50 | 10090 | 292610 |
| NYSE | PH | Parker-Hannifin Corp. | 87.99 | 95.69 | -7.70 | -8.05% | 125.94 | 87.39 | 135980 | 11964880.2 |
| NYSE | RBC | Regal-Beloit Corp. | 52.27 | 57.86 | -5.59 | -9.66% | 81.36 | 51.66 | 44660 | 2334378.2 |
| NYSE | ROK | Rockwell Automation | 91.68 | 101.54 | -9.86 | -9.71% | 127.05 | 89.48 | 131790 | 12082507.2 |
| OTC | SIEGY | Siemens Aktiengesellschaft | 88.83 | 96.09 | -7.26 | -7.56% | 115.00 | 87.88 | 808620 | 71829714.6 |
| NYSE | SPXC | SPX Corp. | 8.01 | 8.94 | -0.93 | -10.40% | 22.90 | 7.62 | 40800 | 326808 |
| NYSE | TXN | Texas Instruments | 48.03 | 57.55 | -9.52 | -16.54% | 59.99 | 43.49 | 1010000 | 48510300 |
| NYSE | UTX | United Technologies Corp. | 85.63 | 93.26 | -7.63 | -8.18% | 124.45 | 85.47 | 887020 | 75955522.6 |
| NYSE | WSO | Watsco, Inc. | 109.85 | 119.94 | -10.09 | -8.41% | 133.09 | 103.52 | 27610 | 3032958.5 |
The HVACR Business Stock Index also faltered, shedding 126.72 points, or 11.14 percent, and ending at 1010.83. Declining issues nearly shut out advancing issues at a 32-to-1 count.
A.O. Smith endured a couple of ratings cuts, and fell 14.24 points, or 18.32 percent. Maxim group downgraded AOS to "hold" from "buy," and Zacks Investment Research cut AOS to "sell" from "hold," citing the influence of the devaluation of Chinese currency, as well as a decline in sales in India and Europe. AOS ended at 63.51, and was the top dollar loser.
Airgas rose 1.64 points, or 1.20 percent. ARG has a consensus rating of "hold" from the fourteen firms that cover the stock, with a target price of $124. Airgas ended at 138.30, and was the top dollar and percentage gainer.
Lennox International tumbled 13.45 points, or 10.41 percent. Investment firm William Blair initiated coverage on LII with a rating of "outperform." Lennox closed at 115.77.
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.