Markets Fall in Oil’s Rout
Originally published: 12.17.14 by Margot Crabtree
Wall Street began our session with new highs for the Dow industrials and the S&P 500, and ended with the lowest numbers in 2½ years as our trading session ended Dec. 15, 2014. The session began well enough, with a rate cut in China and the possibility of new stimulus efforts by the European central bank.
The National Association of Realtors reported that October existing home sales increased 1.5 percent, the highest rate since September 2013, to an annualized rate of 5.26 million units; economists polled by Reuters expected a decline to a 5.16 million pace.
Oil began its free-fall in late November following a decision by OPEC members not to cut output. The Commerce Department reported that orders for durable goods rose 0.4 percent in October; consumer spending was also up. The Commerce Department reported sales of new single family homes rose for the third consecutive month in October, up 0.7 percent, but September's sales were downwardly revised to 455,000 units; economists polled by Reuters expected a 472,000-unit improvement.
Strong jobs data buffered oil's slide after the Labor Department said that employers in the U.S. hired more workers in November than in any month in almost three years. The Commerce Department reported that construction spending rose in October to the highest level since May, up 1.1 percent, but homebuilder sentiment crumbled slightly in December.
"When you look at the major drivers of global growth — Japan, China and the Eurozone — they're really struggling," said Bill Strazzullo, chief market strategist at Bell Curve Trading. "Can the U.S. continue to grow at a moderate pace when the rest of the world is having major problems?"
Exchange |
Symbol |
Company Name |
Price
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| NASD | AAON | AAON, Inc. | 20.89 | 20.96 | -0.07 | -0.33% | 23.09 | 16.78 | 54470 | 1137878.3 |
| NYSE | ABB | ABB Ltd. | 20.50 | 22.07 | -1.57 | -7.11% | 27.25 | 19.92 | 2280000 | 46740000 |
| NYSE | ARG | Airgas, Inc. | 110.20 | 114.28 | -4.08 | -3.57% | 118.75 | 99.32 | 74700 | 8231940 |
| NYSE | AOS | AO Smith Corp. | 53.46 | 53.17 | 0.29 | 0.55% | 55.35 | 44.14 | 89540 | 4786808.4 |
| NYSE | FIX | Comfort Systems USA, Inc. | 15.56 | 14.90 | 0.66 | 4.43% | 19.75 | 12.63 | 37640 | 585678.4 |
| NYSE | DOV | Dover Corp. | 67.76 | 80.21 | -12.45 | -15.52% | 91.84 | 67.13 | 165360 | 11204793.6 |
| NASD | ELON | Echelon Corp. | 1.72 | 1.91 | -0.19 | -9.95% | 4.18 | 1.67 | 43960 | 75611.2 |
| NYSE | DD | E. I. DuPont de Nemours & Co. | 69.27 | 70.80 | -1.53 | -2.16% | 73.53 | 59.35 | 905950 | 62755156.5 |
| NYSE | EME | EMCOR Group, Inc. | 41.57 | 44.74 | -3.17 | -7.09% | 48.00 | 38.68 | 64750 | 2691657.5 |
| NYSE | EMR | Emerson Electric Co. | 58.15 | 63.62 | -5.47 | -8.60% | 70.66 | 57.76 | 693630 | 40334584.5 |
| NYSE | FCAU | Fiat Chrysler | 11.41 | 12.40 | -0.99 | -7.98% | 13.76 | 7.20 | 1280000 | 14604800 |
| NYSE | F | Ford Motor Co. | 14.28 | 15.14 | -0.86 | -5.68% | 18.12 | 13.26 | 3850000 | 54978000 |
| NYSE | GM | General Motors Co. | 31.00 | 31.65 | -0.65 | -2.05% | 41.85 | 28.82 | 1610000 | 49910000 |
| NYSE | HON | Honeywell International, Inc. | 95.81 | 96.79 | -0.98 | -1.01% | 100.16 | 82.89 | 782810 | 75001026.1 |
| NASD | HDSN | Hudson Technologies, Inc. | 3.71 | 3.79 | -0.08 | -2.11% | 4.80 | 2.55 | 32030 | 118831.3 |
| NYSE | IR | Ingersoll-Rand Plc | 61.58 | 62.59 | -1.01 | -1.61% | 64.77 | 52.47 | 265470 | 16347642.6 |
| NYSE | JCI | Johnson Controls, Inc. | 45.64 | 49.41 | -3.77 | -7.63% | 52.50 | 38.60 | 666190 | 30404911.6 |
| NYSE | LII | Lennox International Inc. | 92.47 | 91.92 | 0.55 | 0.60% | 96.06 | 72.61 | 48040 | 4442258.8 |
| NYSE | LXU | LSB Industries, Inc. | 29.29 | 32.98 | -3.69 | -11.19% | 42.41 | 28.91 | 22610 | 662246.9 |
| NYSE | MTW | Manitowoc Co., Inc. | 16.95 | 20.72 | -3.77 | -18.19% | 33.50 | 16.24 | 135520 | 2297064 |
| NYSE | NWL | Newell Rubbermaid, Inc. | 34.78 | 34.83 | -0.05 | -0.14% | 36.85 | 28.27 | 271100 | 9428858 |
| NYSE | MLI | Mueller Industries, Inc. | 32.91 | 32.46 | 0.45 | 1.39% | 34.39 | 27.10 | 56890 | 1872249.9 |
| OTC | NSANY | Nissan Motor Co. Ltd. | 17.31 | 18.58 | -1.27 | -6.84% | 20.27 | 16.45 | 2100000 | 36351000 |
| NASD | OFLX | OmegaFlex, Inc. | 28.70 | 29.77 | -1.07 | -3.59% | 33.75 | 15.93 | 10090 | 289583 |
| NYSE | PH | Parker-Hannifin Corp. | 121.92 | 128.44 | -6.52 | -5.08% | 133.41 | 99.82 | 148640 | 18122188.8 |
| NYSE | RBC | Regal-Beloit Corp. | 70.42 | 71.12 | -0.70 | -0.98% | 80.41 | 62.15 | 44690 | 3147069.8 |
| NYSE | ROK | Rockwell Automation | 103.38 | 110.12 | -6.74 | -6.12% | 128.57 | 98.55 | 135770 | 14035902.6 |
| OTC | SIEGY | Siemens Aktiengesellschaft | 110.84 | 110.83 | 0.01 | 0.01% | 139.28 | 103.20 | 835250 | 92579110 |
| NYSE | SPW | SPX Corp. | 78.54 | 91.93 | -13.39 | -14.57% | 111.47 | 78.41 | 41070 | 3225637.8 |
| NYSE | TXN | Texas Instruments | 53.07 | 51.63 | 1.44 | 2.79% | 56.00 | 40.33 | 1060000 | 56254200 |
| NYSE | UTX | United Technologies Corp. | 111.91 | 107.45 | 4.46 | 4.15% | 120.66 | 97.30 | 911660 | 102023870.6 |
| NYSE | WSO | Watsco, Inc. | 103.14 | 101.50 | 1.64 | 1.62% | 106.72 | 84.28 | 32330 | 3334516.2 |
The HVACR Business Stock Index slipped 31.98 points, or 2.55 percent, in tandem with the national markets, and closed at 1221.14. Declining issues overwhelmed advancing issues by a 3-to-1 margin.
Manitowoc slid 3.77 points, or 18.19 percent and ended at 16.95. Zacks Equity Research cut its rating on MTW to "strong sell," and cited MTW's weak third quarter and softer full-year results, all based on a decline in demand. Deutsche Bank cut its price target on Manitowoc to $20, from $23. Their current rating is "hold." MTW was the top percentage loser.
Personnel shifts sent shares of United Technologies ahead 4.46 points, or 4.15 percent. After the unexpected departure of United Tech's CEO Louis Chenevert, the company appointed UTX Chief Financial Officer Gregory Hayes to the top spot.
To replace Hayes as CEO, United Technologies brought back Akhil Johri, a 26-year former employee plucked from the CFO position at Pall Corp. UTX closed at 111.91, and was the top dollar gainer.
It was a tough session for Dover, down 12.45 points, or 15.52 percent. Dover reduced its full-year guidance and was hit by several downgrades. DOV lowered 2014 estimates to range between $4.55 per share and $4.62 per share, down from $4.75 to $4.80.
Analysts were seeking a midpoint of $4.77 per share. Both Global Hunter Securities and Bank of America cut their rating to "neutral" from "buy;" Goldman Sachs downgraded DOV to "sell" from "neutral." DOV ended at 67.76.
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.