Rough-and-Tumble Earnings and Economics Push Markets into Negative Terrain
Originally published: 05.16.16 by Margot Crabtree
Concerns about global growth led to a drop in equities as our trading began, and see-sawed through the session as it ended May 13, 2016.
The National Association of Realtors said that it's pending home sales index rose 1.4 percent to 110.5, the highest level since May 2015. However, new single-family home sales were down in a Commerce Department report for March. The Commerce Department said that overall construction spending rose 0.3 percent in March, the highest level in more than eight years.
The Commerce Department said that factory orders increased 1.1 percent in March, from a 1.9 percent decline in February, the second improvement in orders in the last five months. Economists polled by Reuters expected only a 0.6 percent increase. U.S. manufacturers have faced a strong dollar, poor growth worldwide and a big drop in oil prices.
Retailers pressured markets as earnings disappointed in our final week, and the Commerce Department reported an uptick in retail sales for April, up 1.3 percent. It was biggest gain since March 2015.
The University of Michigan's consumer sentiment index shot up 6.8 percent in early May, to 95.8, increasing in all income and age groups.
"I don't see any conviction on the part of buyers or sellers at this point," said Warren West, principal at Greentree Brokerage Services in Philadelphia. "It's a slow, grinding economy, so you're going to get slow, grinding stocks."
Exchange |
Symbol |
Company Name |
Price
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| NASD | AAON | AAON, Inc. | 27.85 | 27.27 | 0.58 | 2.13% | 28.61 | 18.85 | 53020 | 1476607 |
| NYSE | ABB | ABB Ltd. | 20.20 | 19.79 | 0.41 | 2.07% | 23.66 | 15.74 | 2160000 | 43632000 |
| NYSE | ARG | Airgas, Inc. | 142.94 | 142.00 | 0.94 | 0.66% | 143.05 | 86.09 | 72430 | 10353144.2 |
| NYSE | AOS | AO Smith Corp. | 78.25 | 79.23 | -0.98 | -1.24% | 82.29 | 50.09 | 74760 | 5849970 |
| NYSE | FIX | Comfort Systems USA, Inc. | 30.90 | 32.81 | -1.91 | -5.82% | 35.00 | 21.90 | 37200 | 1149480 |
| NYSE | DOV | Dover Corp. | 64.93 | 65.98 | -1.05 | -1.59% | 78.21 | 50.91 | 155150 | 10073889.5 |
| NASD | ELON | Echelon Corp. | 4.57 | 5.41 | -0.84 | -15.53% | 9.80 | 4.52 | 4420 | 20199.4 |
| NYSE | DD | E. I. DuPont de Nemours & Co. | 62.91 | 65.27 | -2.36 | -3.62% | 75.72 | 47.11 | 873510 | 54952514.1 |
| NYSE | EME | EMCOR Group, Inc. | 46.72 | 48.46 | -1.74 | -3.59% | 52.37 | 40.98 | 60700 | 2835904 |
| NYSE | EMR | Emerson Electric Co. | 51.81 | 55.32 | -3.51 | -6.34% | 62.75 | 41.25 | 643350 | 33331963.5 |
| NYSE | FCAU | Fiat Chrysler | 7.65 | 7.52 | 0.13 | 1.73% | 10.93 | 5.78 | 1290000 | 9868500 |
| NYSE | F | Ford Motor Co. | 13.22 | 12.94 | 0.28 | 2.16% | 15.84 | 10.44 | 3900000 | 51558000 |
| NYSE | GM | General Motors Co. | 30.52 | 30.56 | -0.04 | -0.13% | 36.88 | 24.62 | 1540000 | 47000800 |
| NYSE | HON | Honeywell International, Inc. | 113.20 | 114.63 | -1.43 | -1.25% | 116.56 | 87.00 | 762120 | 86271984 |
| NASD | HDSN | Hudson Technologies, Inc. | 3.53 | 3.56 | -0.03 | -0.84% | 4.17 | 2.45 | 32970 | 116384.1 |
| NYSE | IR | Ingersoll-Rand Plc | 65.59 | 63.77 | 1.82 | 2.85% | 70.93 | 47.08 | 257460 | 16886801.4 |
| NYSE | JCI | Johnson Controls, Inc. | 40.81 | 39.17 | 1.64 | 4.19% | 54.52 | 33.62 | 648370 | 26459979.7 |
| NYSE | LII | Lennox International Inc. | 137.51 | 140.84 | -3.33 | -2.36% | 143.19 | 105.65 | 43610 | 5996811.1 |
| NYSE | LXU | LSB Industries, Inc. | 13.80 | 13.41 | 0.39 | 2.91% | 44.76 | 3.68 | 23870 | 329406 |
| NYSE | MTW | Manitowoc Co., Inc. | 5.89 | 4.79 | 1.10 | 22.96% | 20.72 | 4.00 | 137020 | 807047.8 |
| NYSE | MLI | Mueller Industries, Inc. | 29.91 | 30.49 | -0.58 | -1.90% | 36.39 | 23.09 | 57130 | 1708758.3 |
| NYSE | NWL | Newell Rubbermaid, Inc. | 47.49 | 44.33 | 3.16 | 7.13% | 50.90 | 33.26 | 456680 | 21687733.2 |
| OTC | NSANY | Nissan Motor Co. Ltd. | 18.86 | 18.38 | 0.48 | 2.61% | 21.92 | 16.57 | 2100000 | 39606000 |
| NASD | NTK | Nortek, Inc. | 49.78 | 48.18 | 1.60 | 3.32% | 92.96 | 33.85 | 16310 | 811911.8 |
| NASD | OFLX | OmegaFlex, Inc. | 33.50 | 35.91 | -2.41 | -6.71% | 43.20 | 27.51 | 10090 | 338015 |
| NYSE | PH | Parker-Hannifin Corp. | 109.77 | 113.72 | -3.95 | -3.47% | 125.33 | 83.32 | 134680 | 14783823.6 |
| NYSE | RBC | Regal-Beloit Corp. | 56.47 | 67.19 | -10.72 | -15.95% | 81.36 | 47.77 | 44670 | 2522514.9 |
| NYSE | ROK | Rockwell Automation | 113.08 | 116.86 | -3.78 | -3.23% | 127.05 | 87.53 | 130260 | 14729800.8 |
| OTC | SIEGY | Siemens Aktiengesellschaft | 105.29 | 104.43 | 0.86 | 0.82% | 111.05 | 86.58 | 808890 | 85168028.1 |
| NYSE | SPXC | SPX Corp. | 15.92 | 16.91 | -0.99 | -5.85% | 19.68 | 7.62 | 41610 | 662431.2 |
| NYSE | TXN | Texas Instruments | 57.12 | 58.93 | -1.81 | -3.07% | 60.60 | 43.49 | 1000000 | 57120000 |
| NYSE | UTX | United Technologies Corp. | 100.27 | 104.57 | -4.30 | -4.11% | 119.66 | 83.39 | 836870 | 83912954.9 |
| NYSE | WSO | Watsco, Inc. | 131.97 | 135.42 | -3.45 | -2.55% | 138.30 | 106.58 | 27520 | 3631814.4 |
The HVACR Business Stock Index edged slightly lower, off just 5.16 points, or 0.44 percent. Declining issues outpaced advancing issues by a 20-to-13 count.
Newell Rubbermaid, now Newell Brands following its merger with Jarden Corp, added 3.16 points, or 7.13 percent and closed at 47.49. For its first quarter, NWL reported net income of $40.5 million, or $0.15 per share, versus net income of $54.1 million, or $0.20 per share a year ago. Sales were $1.31 billion.
Adjusted for one-time items, Newell earned $0.40 per share. Analysts polled by Zacks expected NWL to earn $0.40 per share and earn revenue of $1.28 billion. Analysts at Jefferies upped Newell's price target to $59, and Morgan Stanley re-iterated its "buy" rating on the stock. NWL closed at 47.49, and was the top dollar gainer.
Regal Beloit fell short of expectations for its first quarter, and tumbled 10.72 points, or 15.95 percent. RBC said it earned $41.6 million, or $0.93 per share, and revenue of $818.2 million. Adjusted for one-time items, RBC earned $0.95 per share.
Analysts polled by Zacks expected earnings of $1.09 per share and revenue of $855.3 million. KeyBanc Capital Markets cut its rating on Regal Beloit to "sector weight" from "overweight, and Morgan Stanley downgraded RBC to "equal weight" from "overweight." RBC ended at 56.47, and was the top dollar and percentage loser.
Although United Technologies exceeded on first quarter earnings and revenue, shares slid 4.30 points, or 4.11 percent. UTX reported net income of $1.19 billion, or $1.43 per share. Earnings, adjusted for one-time gains and costs, were $1.47 per share. Revenue was $13.36 billion. Analysts polled by Zacks expected earnings of $1.38 per share and revenue $13.03 billion.
RBC Capital Markets cut its rating on UTX to "sector perform" from "outperform," and its price target to $108, citing the cooling of Honeywell's ardor for UTX, as well as the company's valuation. United Technologies closed at 100.27.
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.