Facebook Twitter LinkedIn Google+


Stocks Struggle as Markets Correct

Originally published: 03.01.14 by Margot Crabtree


Although a report from the Federal Reserve at the start of our session showed that industrial production grew by 3.5 percent in the fourth quarter of 2013, that report was not reflected in the stock market, which was all about a negative terrain.

As our trading session ended on February 14, 2014, national markets began improving, but not enough to pull stocks out of their slump.

A report from the Commerce Department showed a slowdown in December homebuilding, but the full year was the best since the housing bubble burst. Emerging markets scared investors after a preliminary survey of a purchasing managers' index of Chinese manufacturing dropped to 49.6, the lowest reading since July; any number below 50 indicates contraction.

The Thomson Reuters/University of Michigan consumer sentiment index was 81.2, down from 82.5 last month, but up from the reading of 80.4 two weeks ago. The Federal Reserve also cut its stimulus program by another $10 billion, sending more tremors into an already unsettled market.

The Commerce Department reported that cold weather also knocked retail back: sales fell 0.4 percent in January. Investors returned to earnings after spending time pondering emerging markets and bad weather; acquisitions also bolstered the market.


"It seems a little too soon for [stocks] to have worked their way through this yet," said Barry Knapp, the head of U.S. equity portfolio strategy at Barclays. "We don't think the uptrend is going to resume right away. Stocks will probably still struggle a bit in the first half of the year."

Exchange
Symbol
Company Name
Price
7/15/14
Price
6/15/14
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 28.85 32.40 -3.55 -10.96% 34.27 15.81 36750 1060237.5
NYSE ABB ABB Ltd. 25.41 26.31 -0.90 -3.42% 27.25 20.65 2300000 58443000
NYSE ARG Airgas, Inc. 106.41 111.08 -4.67 -4.20% 113.16 92.86 73770 7849865.7
NYSE AOS AO Smith Corp. 48.23 52.54 -4.31 -8.20% 55.18 33.35 92020 4438124.6
NYSE FIX Comfort Systems USA, Inc. 15.86 18.76 -2.90 -15.46% 20.95 11.66 37290 591419.4
NYSE DOV Dover Corp. 86.06 96.36 -10.30 -10.69% 97.00 67.45 170030 14632781.8
NASD ELON Echelon Corp. 2.81 3.02 -0.21 -6.95% 4.18 1.99 43250 121532.5
NYSE DD E. I. DuPont de Nemours & Co. 64.50 63.73 0.77 1.21% 65.00 46.02 927720 59837940
NYSE EME EMCOR Group, Inc. 41.82 43.76 -1.94 -4.43% 44.88 35.26 67130 2807376.6
NYSE EMR Emerson Electric Co. 64.51 69.78 -5.27 -7.55% 70.66 53.09 702980 45349239.8
NYSE F Ford Motor Co. 15.24 16.70 -1.46 -8.74% 18.02 12.10 3940000 60045600
NYSE GM General Motors Co. 35.95 39.38 -3.43 -8.71% 41.85 26.19 1590000 57160500
NYSE HON Honeywell International, Inc. 94.61 89.91 4.70 5.23% 94.87 68.84 785900 74353999
NASD HDSN Hudson Technologies, Inc. 3.27 3.77 -0.50 -13.26% 5.04 1.75 25070 81978.9
NYSE IR Ingersoll-Rand Plc 58.43 62.84 -4.41 -7.02% 63.42 40.65 288090 16833098.7
NYSE JCI Johnson Controls, Inc. 49.00 51.39 -2.39 -4.65% 52.50 30.58 664030 32537470
NYSE LII Lennox International Inc. 88.39 88.00 0.39 0.44% 88.92 56.56 49100 4339949
NYSE LXU LSB Industries, Inc. 32.81 36.92 -4.11 -11.13% 42.15 28.15 22520 738881.2
NYSE MTW Manitowoc Co., Inc. 29.07 25.81 3.26 12.63% 29.39 16.18 133180 3871542.6
NYSE NWL Newell Rubbermaid, Inc. 31.36 32.07 -0.71 -2.21% 32.54 22.46 283400 8887424
NYSE MLI Mueller Industries, Inc. 61.63 63.58 -1.95 -3.07% 64.05 48.10 27930 1721325.9
OTC NSANY Nissan Motor Co. Ltd. 17.89 18.15 -0.26 -1.43% 24.15 16.45 2100000 37569000
NASD OFLX OmegaFlex, Inc. 20.25 20.25 0.00 0.00% 22.55 12.48 10090 204322.5
NYSE PH Parker-Hannifin Corp. 117.85 128.96 -11.11 -8.62% 129.77 84.50 149130 17574970.5
NYSE RBC Regal-Beloit Corp. 72.75 80.02 -7.27 -9.09% 88.25 61.86 45070 3278842.5
NYSE ROK Rockwell Automation 117.00 118.86 -1.86 -1.56% 121.01 80.60 138780 16237260
NYSE SI Siemens AG 130.32 137.85 -7.53 -5.46% 139.28 98.69 844420 110044814.4
NYSE SPW SPX Corp.  104.85 103.77 1.08 1.04% 108.21 67.19 45350 4754947.5
NYSE TXN Texas Instruments 43.86 43.54 0.32 0.73% 44.82 32.19 1080000 47368800
NYSE UTX United Technologies Corp. 113.87 114.07 -0.20 -0.18% 118.20 88.37 915240 104218378.8
NYSE WSO Watsco, Inc. 95.86 95.01 0.85 0.89% 99.01 76.07 32210 3087650.6

 

The HVACR Business Stock Index fell 33.69 points, or 2.54 percent, and closed at 1291.87. Declining issues overpowered advancing issues by a 23-to-7 count.

Parker-Hannifin tumbled 11.11 points, or 8.62 percent this session, after missing estimates. For its fiscal 2014 second quarter, PH posted net income of $253.4 million, or $1.66 per share, versus $181.1 million, or $1.19 per share, in the same quarter last year. Revenue grew 1.3 percent to $3.11 billion. Adjusted net income was $1.24 per share, which fell below analysts' expectations of $1.25 in earnings per share and $3.15 billion in revenue. PH ended at 117.85, and was the top dollar loser.

Honeywell advanced 4.70 points, or 5.23 percent after beating analysts' estimates for fourth quarter earnings. HON said it earned net income of $947 million, or $1.19 per share, compared to net income of $251 million, or $0.32 per share, in last year's comparable quarter. Revenue was up 8 percent to $10.39 billion. Excluding one-time items, HON earned $1.24 per share, besting estimates of $1.21 per share from analysts surveyed by Thomson Reuters. Honeywell closed at 94.61, and was the top dollar gainer.

Shares of Dover fell 10.30 points, or 10.69 percent this session, despite meeting analysts' expectations for the fourth quarter. DOV reported net income from continuing operations of $210.8 million, or $1.22 per share, compared to net income of $208.2 million, or $1.16 per share, last year. Revenue rose 10 percent to $2.2 billion.

Dover said it plans to spin off its Knowles communications technologies unit. Knowles will begin trading on March 3, 2014 under the ticker "KN" on the New York Stock Exchange. DOV ended at 86.06.


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.

 


Articles by Margot Crabtree

Markets End Mixed Despite Broad Rally

The HVACR Business Stock Index tumbled 65.53 points, or 5.12 percent, and closed at 1214.01. Declining issues easily outpaced advancing issues by a 28-to-5 count.
View article.

 

First Quarter Contraction, Interest Rate Worries and Greek Debt Hamper Markets

The HVACR Business Stock Index slid 29.56 points, or 2.26 percent, and closed at 1279.54. Declining issues bypassed advancing issues by a 19-to-13 count.
View article.

 

Markets Inch Ahead in Lackluster Session

Market listlessness was reflected in the HVACR Business Stock Index, with the index falling 27.10 points, or 2.03 percent, and closing at 1309.10. Advancing issues bested declining issues by an 18-to-14 count.
View article.

 

Stocks Waffle, Earnings Season Begins

The HVACR Business Stock Index rose 6.96 points, or 0.52 percent, and closed at 1336.20. Advancing issues easily outpaced declining issues by a 24-to-9 count.
View article.

 

Specter of Higher Interest Rates Sends Markets South

The HVACR Business Stock Index inched down just 2.66 points, or 0.20 percent. Declining issues topped advancing issues by a 19-to-14 count.
View article.