Inflation Fears Vie with Earnings; Earnings Win
Originally published: 05.16.18 by Margot Crabtree
Markets were choppy with inflationary concerns and trade war jitters, but ended with a broad rally powered by health care, tech and energy as our trading session ended May 15, 2018.
The Commerce Department reported a slowdown in the U.S. economy in the first quarter, with the gross domestic product (GDP) up a modest 2.3 percent annual growth rate; consumer spending was the softest in almost five years. The fourth quarter 2017 GDP rose 2.9 percent. The Conference Board reported that its consumer confidence index rose to 128.7 in April, from March’s 127.0.
The Federal Reserve said that factory output in the U.S. rose 0.1 percent in March. The Institute for Supply Management said that its index of factory activity slid to 57.3 in April, from March’s 59.3, but expansion is still indicated despite the slowdown.
The Labor Department said that wages and salaries in the private sector rose at the steepest pace in the first quarter since the first quarter in 2007, contributing to inflationary worries. The department reported a modest inflation rate for April. Although the consumer price index (CPI) increased 0.2 percent, with the volatile food and energy prices stripped out, core prices were up 0.1 percent. Producer prices, which tally increases before they reach the consumer, were also moderate.
The Labor Department announced an 8 percent rise in job openings in March. That put unemployment and available jobs in a rare balance, as there are typically many more openings than job seekers. The 6.55 million open jobs are the most since record-keeping began in December 2000. It was positive news all around.
“The CPI came in at a level where it’s not so alarming as far as what the Fed is thinking,” said Mark Kepner, equity trader at Themis Trading in Chatham, New Jersey. “There’s comfort that the Fed won’t have to move too quickly.”
Exchange |
Symbol |
Company Name |
Price
|
Price
|
Net
|
PercentChange |
52-Week
|
52-Week
|
Shares
|
Market
|
| NASD | AAON | AAON, Inc. | 29.50 | 34.45 | -4.95 | -14.37% | 40.25 | 29.05 | 52360 | 1544620 |
| NYSE | ABB | ABB Ltd. | 23.82 | 22.86 | 0.96 | 4.20% | 28.67 | 21.92 | 2130000 | 50736600 |
| NYSE | AOS | AO Smith Corp. | 62.98 | 63.79 | -0.81 | -1.27% | 68.39 | 52.90 | 145080 | 9137138.4 |
| NYSE | FIX | Comfort Systems USA, Inc. | 44.75 | 40.65 | 4.10 | 10.09% | 48.95 | 31.90 | 37040 | 1657540 |
| NYSE | DOV | Dover Corp. | 76.95 | 75.82 | 1.13 | 1.50% | 88.09 | 62.08 | 154680 | 11902626 |
| NASD | ELON | Echelon Corp. | 4.19 | 4.48 | -0.29 | -6.47% | 7.20 | 4.07 | 4540 | 19022.6 |
| NYSE | DWDP | DowDuPont | 67.15 | 66.17 | 0.98 | 1.48% | 77.08 | 59.29 | 2320000 | 155788000 |
| NYSE | EME | EMCOR Group, Inc. | 75.47 | 78.78 | -3.31 | -4.20% | 85.08 | 61.97 | 58460 | 4411976.2 |
| NYSE | EMR | Emerson Electric Co. | 71.83 | 68.42 | 3.41 | 4.98% | 74.45 | 57.36 | 630090 | 45259364.7 |
| NYSE | FCAU | Fiat Chrysler | 22.38 | 23.41 | -1.03 | -4.40% | 24.95 | 10.16 | 1540000 | 34465200 |
| NYSE | F | Ford Motor Co. | 11.22 | 11.28 | -0.06 | -0.53% | 13.48 | 10.14 | 3910000 | 43870200 |
| NYSE | GM | General Motors Co. | 36.94 | 38.73 | -1.79 | -4.62% | 46.76 | 31.92 | 1410000 | 52085400 |
| NYSE | HON | Honeywell International, Inc. | 147.35 | 146.12 | 1.23 | 0.84% | 165.13 | 129.00 | 746930 | 110060135.5 |
| NASD | HDSN | Hudson Technologies, Inc. | 2.52 | 4.42 | -1.90 | -42.99% | 10.40 | 2.50 | 42400 | 106848 |
| NYSE | IR | Ingersoll-Rand Plc | 88.88 | 84.13 | 4.75 | 5.65% | 97.67 | 79.63 | 247960 | 22038684.8 |
| NYSE | JCI | Johnson Controls, Inc. | 36.27 | 34.08 | 2.19 | 6.43% | 44.37 | 32.89 | 922600 | 33462702 |
| NYSE | LII | Lennox International Inc. | 199.13 | 198.71 | 0.42 | 0.21% | 223.05 | 160.18 | 41240 | 8212121.2 |
| NYSE | LXU | LSB Industries, Inc. | 5.42 | 6.16 | -0.74 | -12.01% | 11.71 | 5.29 | 28610 | 155066.2 |
| NYSE | MTW | Manitowoc Co., Inc. | 25.50 | 28.12 | -2.62 | -9.32% | 44.03 | 21.24 | 35520 | 905760 |
| NYSE | MLI | Mueller Industries, Inc. | 29.28 | 26.71 | 2.57 | 9.62% | 37.57 | 25.26 | 57560 | 1685356.8 |
| NYSE | NWL | Newell Brands, Inc. | 26.34 | 25.72 | 0.62 | 2.41% | 55.08 | 23.85 | 485700 | 12793338 |
| OTC | NSANY | Nissan Motor Co. Ltd. | 20.43 | 20.84 | -0.41 | -1.97% | 22.14 | 18.74 | 3910000 | 79881300 |
| NASD | OFLX | OmegaFlex, Inc. | 72.10 | 66.50 | 5.60 | 8.42% | 76.63 | 53.50 | 10090 | 727489 |
| NYSE | PH | Parker-Hannifin Corp. | 176.66 | 172.48 | 4.18 | 2.42% | 212.80 | 151.17 | 132960 | 23488713.6 |
| NYSE | RBC | Regal-Beloit Corp. | 79.30 | 72.20 | 7.10 | 9.83% | 87.50 | 67.84 | 43980 | 3487614 |
| NYSE | ROK | Rockwell Automation | 178.18 | 172.88 | 5.30 | 3.07% | 210.72 | 151.78 | 125580 | 22375844.4 |
| OTC | SIEGY | Siemens Aktiengesellschaft | 68.89 | 64.65 | 4.24 | 6.56% | 77.17 | 61.68 | 815520 | 56181172.8 |
| NYSE | SPXC | SPX Corp. | 33.45 | 32.58 | 0.87 | 2.67% | 33.97 | 23.41 | 42970 | 1437346.5 |
| NYSE | TXN | Texas Instruments | 109.21 | 102.16 | 7.05 | 6.90% | 120.75 | 75.92 | 981720 | 107213641.2 |
| NYSE | UTX | United Technologies Corp. | 124.55 | 122.71 | 1.84 | 1.50% | 139.24 | 109.10 | 800060 | 99647473 |
| NYSE | WSO | Watsco, Inc. | 178.77 | 183.41 | -4.64 | -2.53% | 192.94 | 136.14 | 29070 | 5196843.9 |
|
|
Price 5/15/18 |
Price 4/13/18 |
Net Change |
Percent Change |
| HVACR Business Stock Index | 1,555.28 | 1,534.31 | 20.97 | 1.37% |
| Dow Jones Industrial Average | 24,706.41 | 24,360.14 | 346.27 | 1.42% |
| S&P 500 Index | 2,711.45 | 2,656.30 | 55.15 | 2.08% |
| NASDAQ Composite | 7,351.63 | 7,106.65 | 244.98 | 3.45% |
Gainers/Losers |
||||
| $ Gainer | Regal-Beloit Corp. | 7.10 | ||
| $ Loser | AAON, Inc. | -4.95 | ||
| % Gainer | Comfort Systems USA, Inc. | 10.09% | ||
| % Loser | Hudson Technologies, Inc. | -42.99% | ||
| Advancers | 19 | |||
| Decliners | 12 | |||
The HVACR Business Stock Index rose 20.97 points, or 1.37 percent, and closed at 1555.28. Advancing issues topped declining issues at a 19-to-12 count.
Regal Beloit jumped 7.10 points, or 9.83 percent. RBC posted first quarter net income of $58.4 million, or $1.31 per share, compared to last year’s $46.3 million, or $1.02 per share. Adjusted for restructuring, RBC earned $1.34 per share, versus $1.07 per share a year ago.
Revenue was $878.8 million, from last year’s $813.5 million. Analysts surveyed by Zack’s expected earnings of $1.26 per share and revenue of $867.2 million. Regal Beloit ended at 79.30, and was the top dollar gainer.
AAON posted first quarter net income of $4.3 million, or $0.08 per share. Last year’s net income was $10.2 million, or $0.19 per share. Revenue was $99.1 million. The consensus estimate on earnings was $0.24 per share. AAON fell 4.95 points, or 14.37 percent, and was the top dollar loser. AAON closed at 29.50.
Comfort Systems increased 4.10 points, or 10.09 percent. FIX reported net income of $16.7 million, or $0.44 per share, from $7.5 million, or $0.20 per share in last year’s first quarter. Revenue was $464.9 million, compared to $380.6 million in the year-ago quarter. FIX ended at 44.75, and was the top percentage gainer.