Economics Improve but HVACR Index Slips into Red
Originally published: 06.01.14 by Margot Crabtree
A mixed bag greeted investors this session, with economic news generally positive, while even over-performing earnings bore scrutiny and geopolitical turmoil pressured Wall Street. The Consumer Price Index rose 0.2 percent in March, largely on food and housing rental, though other inflationary rates remained fairly tame.
The University of Michigan’s index of consumer sentiment rose to 84.1 in April, from 80 in March — a ninemonth high. Durable goods orders rose 2.6 percent in March, following a 2.1 percent increase in February and declines in the two months prior. The Commerce Department reported that new home sales fell to an eight-month low in March, with 384,000 units, compared to the 450,000-unit pace expected by economists polled by Reuters.
In jobs news, the Labor Department stated employers increased hiring by 288,000 jobs in April, 70,000 ahead of expectations. The unemployment rate fell to 6.3 percent, the lowest since September 2008. The Commerce Department reported that factory orders grew 1.1 percent in March after improving 1.5 percent in February, and orders for core capital goods — a measure of business investment — increased 3.5 percent in March, the largest increase since January 2013.
Wholesale stockpiles improved 1.1 percent in March, with sales rising by the widest amount in 10 months. Retail sales posted their largest gains in 1.5 years in March, a larger improvementthan expected.
“The small caps have really been selling off, and I think you’re continuing to see a rotation out of anything the market considers riskier,” said Uri Landesman, president of Platinum Partners in New York.
Exchange |
Symbol |
Company Name |
Price
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| NASD | AAON | AAON, Inc. | 29.88 | 25.89 | 3.99 | 15.41% | 34.27 | 20.05 | 36620 | 1094205.6 |
| NYSE | ABB | ABB Ltd. | 23.57 | 25.49 | -1.92 | -7.53% | 27.25 | 20.65 | 2300000 | 54211000 |
| NYSE | ARG | Airgas, Inc. | 105.89 | 105.69 | 0.20 | 0.19% | 113.16 | 92.86 | 73970 | 7832683.3 |
| NYSE | AOS | AO Smith Corp. | 47.28 | 45.70 | 1.58 | 3.46% | 55.18 | 35.11 | 90610 | 4284040.8 |
| NYSE | FIX | Comfort Systems USA, Inc. | 15.33 | 14.61 | 0.72 | 4.93% | 20.95 | 13.27 | 37580 | 576101.4 |
| NYSE | DOV | Dover Corp. | 85.77 | 81.95 | 3.82 | 4.66% | 87.39 | 62.61 | 166490 | 14279847.3 |
| NASD | ELON | Echelon Corp. | 2.42 | 2.63 | -0.21 | -7.98% | 4.18 | 1.99 | 43350 | 104907 |
| NYSE | DD | E. I. DuPont de Nemours & Co. | 66.83 | 66.90 | -0.07 | -0.10% | 68.82 | 52.02 | 918350 | 61373330.5 |
| NYSE | EME | EMCOR Group, Inc. | 44.39 | 44.46 | -0.07 | -0.16% | 48.00 | 36.26 | 67280 | 2986559.2 |
| NYSE | EMR | Emerson Electric Co. | 66.64 | 66.55 | 0.09 | 0.14% | 70.66 | 53.42 | 701740 | 46763953.6 |
| NYSE | F | Ford Motor Co. | 15.69 | 15.84 | -0.15 | -0.95% | 18.02 | 14.30 | 3950000 | 61975500 |
| NYSE | GM | General Motors Co. | 34.36 | 33.36 | 1.00 | 3.00% | 41.85 | 31.13 | 1600000 | 54976000 |
| NYSE | HON | Honeywell International, Inc. | 91.16 | 91.71 | -0.55 | -0.60% | 95.91 | 76.15 | 783120 | 71389219.2 |
| NASD | HDSN | Hudson Technologies, Inc. | 2.86 | 2.94 | -0.08 | -2.72% | 4.09 | 1.75 | 25090 | 71757.4 |
| NYSE | IR | Ingersoll-Rand Plc | 57.16 | 55.57 | 1.59 | 2.86% | 63.42 | 42.64 | 269900 | 15427484 |
| NYSE | JCI | Johnson Controls, Inc. | 44.63 | 45.96 | -1.33 | -2.89% | 52.50 | 34.40 | 664160 | 29641460.8 |
| NYSE | LII | Lennox International Inc. | 83.53 | 87.05 | -3.52 | -4.04% | 94.69 | 59.30 | 49150 | 4105499.5 |
| NYSE | LXU | LSB Industries, Inc. | 36.44 | 37.28 | -0.84 | -2.25% | 42.06 | 29.39 | 22530 | 820993.2 |
| NYSE | MTW | Manitowoc Co., Inc. | 27.52 | 30.43 | -2.91 | -9.56% | 33.46 | 16.18 | 135160 | 3719603.2 |
| NYSE | NWL | Newell Rubbermaid, Inc. | 29.25 | 29.03 | 0.22 | 0.76% | 32.54 | 24.32 | 280900 | 8216325 |
| NYSE | MLI | Mueller Industries, Inc. | 27.81 | 29.13 | -1.32 | -4.53% | 32.13 | 24.05 | 56690 | 1576548.9 |
| OTC | NSANY | Nissan Motor Co. Ltd. | 17.77 | 17.76 | 0.01 | 0.06% | 24.15 | 16.45 | 2100000 | 37317000 |
| NASD | OFLX | OmegaFlex, Inc. | 20.00 | 20.75 | -0.75 | -3.61% | 24.99 | 12.74 | 10090 | 201800 |
| NYSE | PH | Parker-Hannifin Corp. | 122.56 | 121.27 | 1.29 | 1.06% | 129.77 | 92.08 | 148940 | 18254086.4 |
| NYSE | RBC | Regal-Beloit Corp. | 74.55 | 74.54 | 0.01 | 0.01% | 80.41 | 61.86 | 45130 | 3364441.5 |
| NYSE | ROK | Rockwell Automation | 119.77 | 122.43 | -2.66 | -2.17% | 128.46 | 80.60 | 138440 | 16580958.8 |
| NYSE | SI | Siemens AG | 132.66 | 131.72 | 0.94 | 0.71% | 139.28 | 99.07 | 846130 | 112247605.8 |
| NYSE | SPW | SPX Corp. | 102.75 | 97.36 | 5.39 | 5.54% | 109.89 | 69.27 | 43820 | 4502505 |
| NYSE | TXN | Texas Instruments | 44.89 | 45.81 | -0.92 | -2.01% | 49.77 | 34.10 | 1080000 | 48481200 |
| NYSE | UTX | United Technologies Corp. | 115.70 | 115.84 | -0.14 | -0.12% | 120.66 | 90.30 | 916730 | 106065661 |
| NYSE | WSO | Watsco, Inc. | 99.65 | 97.72 | 1.93 | 1.98% | 105.39 | 79.66 | 32250 | 3213712.5 |
The HVACR Business Stock Index slipped 7.83 points, or 0.61 percent, and closed at 1284.79. Declining issues inched past advancing issues at a 16-to-15 count.
Shares of Lennox International fell 3.52 points, or 4.04 percent. LII reported adjusted income from continuing operations of $20.8 million, or $0.42 per share, versus $17 million, or $0.33 per share last year. Revenue was up 4 percent, to $695 million. The Lennox board of directors upped its quarterly dividend 25 percent, to $0.30 per share. LII closed at 83.53, and was the top dollar loser.
SPX Corp rose 5.39 points, or 5.54 percent this session. The company reported net income of $317.8 million, or $6.71 per share, compared to net income of $10 million, or $0.29 per share a year ago. Revenue was off 1.9 percent, to $1.07 billion, from $1.09 billion the year previous.
On an adjusted basis, SPW earned net income from continuing operations of $0.27 per share; analysts polled by Thomson Reuters expected $0.21 per share and revenue of $1.11 per share. Investment firm JPMorgan cut its rating on SPX Corp to “neutral” from “overweight” with a price target of $112. SPW closed at 102.75, and was the top dollar gainer.
Manitowoc bested earnings estimates but missed on revenues, and slipped 2.91 points, or 9.56 percent. MTW lost $8.8 million, or $0.06 per share, compared to net income of $10.4 million, or $0.08 per share a year ago. Sales were $850 million, off 5 percent from a year ago. On an adjusted basis, MTW earned $0.17 per share.
Analysts at Zacks Equity Research expected earnings of $0.22 per share and revenue of $920 million. Manitowoc ended at 27.52, and was the top percentage loser.
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.