Volatility Sends Markets into the Red
Originally published: 10.17.16 by Margot Crabtree
Our session began with the news that the Federal Reserve will delay an increase interest rates but will likely make the move in December. The Nasdaq hit a new record after the Fed’s announcement, but as our trading session ended October 14, 2016, many uncertainties dimmed that positive note.
The Commerce Department said that housing starts were down 5.8 percent in August; flooding in the South was blamed. However, the National Association of Home Builders/Wells Fargo builder sentiment index shot up 6 points in September, to 65, from a downwardly revised 59 for August.
The Commerce Department reported that consumer spending fell in August for the first time in seven months, by 0.1 percent; economists polled by Reuters were expecting a gain of 0.1 percent. Conversely, the Conference Board said their consumer confidence index jumped to 104.1, up from 101.8 in August. It was the highest reading since the index hit 105.6 in August, 2007. Economists were expecting a decline after August’s strong reading.
The Institute for Supply Management’s index of national factory activity increased to 51.5 in September, from 49.4 in August, above expectations from analysts surveyed by Reuters, with new orders and increased production.
As our session came to a close, worries spiked: the British pound tumbled as the Brexit timetable was announced, earnings season is upon us, and the election cycle continues to heat up. Alcoa disappointed and Chinese exports dropped sharply. In between there was little solid ground.
“The data are making the Fed’s current policy look too wrong footed and the markets are waiting for them to get back on track, most likely in December,” said Chris Rupkey, chief economist at MUFG Union Bank in New York.
Exchange |
Symbol |
Company Name |
Price
|
Price
|
Net
|
Percent
|
52-Week
|
52-Week
|
Shares
|
Market
|
| NASD | AAON | AAON, Inc. | 29.35 | 27.56 | 1.79 | 6.49% | 30.80 | 19.06 | 52920 | 1553202 |
| NYSE | ABB | ABB Ltd. | 22.34 | 22.25 | 0.09 | 0.40% | 22.92 | 15.74 | 2160000 | 48254400 |
| NYSE | AOS | AO Smith Corp. | 48.93 | 46.64 | 2.29 | 4.91% | 51.49 | 30.15 | 148270 | 7254851.1 |
| NYSE | FIX | Comfort Systems USA, Inc. | 27.70 | 26.62 | 1.08 | 4.06% | 35.00 | 24.22 | 37130 | 1028501 |
| NYSE | DOV | Dover Corp. | 67.78 | 68.60 | -0.82 | -1.20% | 74.90 | 50.91 | 155220 | 10520811.6 |
| NASD | ELON | Echelon Corp. | 5.06 | 5.12 | -0.06 | -1.17% | 7.50 | 4.41 | 4430 | 22415.8 |
| NYSE | DD | E. I. DuPont de Nemours & Co. | 69.03 | 67.56 | 1.47 | 2.18% | 75.72 | 50.71 | 874330 | 60354999.9 |
| NYSE | EME | EMCOR Group, Inc. | 57.28 | 56.23 | 1.05 | 1.87% | 60.56 | 40.98 | 60800 | 3482624 |
| NYSE | EMR | Emerson Electric Co. | 49.88 | 51.58 | -1.70 | -3.30% | 56.82 | 41.25 | 643540 | 32099775.2 |
| NYSE | FCAU | Fiat Chrysler | 6.30 | 6.52 | -0.22 | -3.37% | 10.89 | 5.45 | 1290000 | 8127000 |
| NYSE | F | Ford Motor Co. | 11.91 | 12.11 | -0.20 | -1.65% | 15.84 | 11.02 | 3980000 | 47401800 |
| NYSE | GM | General Motors Co. | 31.87 | 31.12 | 0.75 | 2.41% | 36.88 | 26.69 | 1550000 | 49398500 |
| NYSE | HON | Honeywell International, Inc. | 109.00 | 115.28 | -6.28 | -5.45% | 120.02 | 93.71 | 760880 | 82935920 |
| NASD | HDSN | Hudson Technologies, Inc. | 6.08 | 5.71 | 0.37 | 6.48% | 6.79 | 2.64 | 33610 | 204348.8 |
| NYSE | IR | Ingersoll-Rand Plc | 65.79 | 63.83 | 1.96 | 3.07% | 68.97 | 47.08 | 258000 | 16973820 |
| NYSE | JCI | Johnson Controls, Inc. | 43.88 | 44.28 | -0.40 | -0.90% | 50.65 | 31.73 | 635790 | 27898465.2 |
| NYSE | LII | Lennox International Inc. | 157.62 | 156.44 | 1.18 | 0.75% | 164.02 | 105.65 | 43470 | 6851741.4 |
| NYSE | LXU | LSB Industries, Inc. | 5.50 | 8.51 | -3.01 | -35.37% | 17.83 | 3.68 | 27940 | 153670 |
| NYSE | MTW | Manitowoc Co., Inc. | 4.45 | 4.38 | 0.07 | 1.60% | 17.56 | 4.00 | 137580 | 612231 |
| NYSE | MLI | Mueller Industries, Inc. | 31.17 | 32.33 | -1.16 | -3.59% | 35.52 | 23.09 | 57170 | 1781988.9 |
| NYSE | NWL | Newell Rubbermaid, Inc. | 52.25 | 50.83 | 1.42 | 2.79% | 55.45 | 33.26 | 482200 | 25194950 |
| OTC | NSANY | Nissan Motor Co. Ltd. | 19.14 | 19.72 | -0.58 | -2.94% | 21.92 | 16.57 | 2100000 | 40194000 |
| NASD | OFLX | OmegaFlex, Inc. | 38.11 | 37.11 | 1.00 | 2.69% | 43.20 | 27.51 | 10090 | 384529.9 |
| NYSE | PH | Parker-Hannifin Corp. | 124.54 | 122.56 | 1.98 | 1.62% | 128.24 | 83.32 | 133770 | 16659715.8 |
| NYSE | RBC | Regal-Beloit Corp. | 59.55 | 57.74 | 1.81 | 3.13% | 68.45 | 47.77 | 44750 | 2664862.5 |
| NYSE | ROK | Rockwell Automation | 116.80 | 115.45 | 1.35 | 1.17% | 123.48 | 87.53 | 129400 | 15113920 |
| OTC | SIEGY | Siemens Aktiengesellschaft | 115.63 | 119.08 | -3.45 | -2.90% | 122.84 | 86.58 | 808890 | 93531950.7 |
| NYSE | SPXC | SPX Corp. | 19.79 | 19.57 | 0.22 | 1.12% | 20.55 | 7.62 | 41760 | 826430.4 |
| NYSE | TXN | Texas Instruments | 68.49 | 69.22 | -0.73 | -1.05% | 72.58 | 46.73 | 1000000 | 68490000 |
| NYSE | UTX | United Technologies Corp. | 100.16 | 102.71 | -2.55 | -2.48% | 109.83 | 83.39 | 836930 | 83826908.8 |
| NYSE | WSO | Watsco, Inc. | 142.89 | 143.71 | -0.82 | -0.57% | 149.99 | 106.58 | 27530 | 3933761.7 |
The HVACR Business Stock Index slid 16.31 points, or 1.31 percent, and closed at 1224.25. However, advancing issues topped declining issues by a 17-to-14 count.
Honeywell fell 6.28 points, or 5.45 percent and closed at 109.00. Research firm Oppenheimer Holdings cut its fourth quarter earnings per share to $1.76, from an earlier estimate of $1.77. Their rating on the stock is “outperform” with a price target of $122. CreditSuisse Group re-stated its rating of “hold” and a price target of $113.35. A “buy” rating was reiterated by Jefferies Group with a price objective of $130. Honeywell was the top dollar loser.
A.O. Smith rose 2.29 points, or 4.91 percent. The twelve brokerages covering the stock have a consensus rating of “buy” on AOS with a price target of $53.79. KeyCorp reiterated its “buy” rating with a price target of $107. The company announced a 2-for-1 stock split effective Oct. 6. AOS ended at 48.93, and was the top dollar gainer.
LSB Industries slipped 3.01 points, or 35.37 percent. Research firm Feltl & Co. cut its third quarter earnings per shares estimates to reflect a loss of $0.81 per share, down from an earlier loss of $0.60 per share. The company cut its 2016 sales volume $25 million to $26.5 million due to reduced production and increased repair costs, but said it was able to meet client demand through inventory. LXU ended at 5.50 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.