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Investors Shrug off Brexit, Markets Rise

Originally published: 07.18.16 by Margot Crabtree


Wall Street began our session on a tumble after Britons voted to leave the European Union. The unexpected turn left investors wondering what is next for Britain, Europe and the worldwide economy.

U.S. markets had their worst day in 10 months and global equities fared even worse as the sell-off was fueled by the uncertain implications of the change. As our trading session ended July 15, 2016, however, investors dismissed the vote and markets turned positive.

The Institute for Supply Management’s (ISM) Chicago factory activity reading for Midwest manufacturing jumped 7.5 points to 56.8 in June, the highest since January, 2015. The ISM’s manufacturing index improved to 53.2 in June, from 51.3 in May, reflecting more stability.

The Federal Reserve said that industrial production increased by 0.6 percent in June, after a drop of 0.3 percent in the previous month. It was best improvement in 10 months.

Alcoa started off the earnings season after the bell on Monday, July 11, and bank earnings followed, boosting investor optimism. Economic data released generally upbeat news. The Commerce Department reported that retail sales rose in June, up 0.6 percent, and the third consecutive month of increases.

The Labor Department said that consumer prices increased 0.2 percent, the


same gain as May, fueled by upswings in the cost of gas and rent. The Commerce Department said that consumer spending grew by 0.4 percent in May, moving upward for the second straight month.

The Conference Board said that consumer confidence increased to 98 in June, from 92.4 in May.

“When you go into earnings season with negative bias in the market it bodes well for stocks,” said Quincy Krosby, market strategist at Prudential Financial. “Any positive surprises will force shorts to cover and gives an upbeat tone.”

 

Exchange
Symbol
Company Name
Price
7/15/16
Price
6/15/16
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 28.11 26.02 2.09 8.03% 28.70 18.85 53020 1490392.2
NYSE ABB ABB Ltd. 20.00 20.33 -0.33 -1.62% 21.64 15.74 2160000 43200000
NYSE AOS AO Smith Corp. 90.96 83.64 7.32 8.75% 91.90 50.09 74430 6770152.8
NYSE FIX Comfort Systems USA, Inc. 31.93 32.00 -0.07 -0.22% 35.00 22.96 37200 1187796
NYSE DOV Dover Corp. 73.11 69.67 3.44 4.94% 73.49 50.91 155150 11343016.5
NASD ELON Echelon Corp. 4.86 4.84 0.02 0.41% 7.50 4.41 4420 21481.2
NYSE DD E. I. DuPont de Nemours & Co. 67.16 65.76 1.40 2.13% 75.72 47.11 873970 58695825.2
NYSE EME EMCOR Group, Inc. 51.87 46.85 5.02 10.72% 52.49 40.98 60700 3148509
NYSE EMR Emerson Electric Co. 56.23 51.96 4.27 8.22% 56.82 41.25 643350 36175570.5
NYSE FCAU Fiat Chrysler 6.75 6.56 0.19 2.90% 10.93 5.45 1290000 8707500
NYSE F Ford Motor Co. 13.57 13.01 0.56 4.30% 15.84 10.44 3900000 52923000
NYSE GM General Motors Co. 30.77 28.86 1.91 6.62% 36.88 24.62 1550000 47693500
NYSE HON Honeywell International, Inc. 119.23 115.52 3.71 3.21% 120.02 87.00 762120 90867567.6
NASD HDSN Hudson Technologies, Inc. 3.50 3.21 0.29 9.03% 3.95 2.45 32970 115395
NYSE IR Ingersoll-Rand Plc 67.94 64.32 3.62 5.63% 69.28 47.08 257460 17491832.4
NYSE JCI Johnson Controls, Inc. 43.98 44.14 -0.16 -0.36% 48.22 33.62 639710 28134445.8
NYSE LII Lennox International Inc. 148.00 135.48 12.52 9.24% 149.03 105.65 43610 6454280
NYSE LXU LSB Industries, Inc. 13.42 13.39 0.03 0.22% 39.23 3.68 23870 320335.4
NYSE MTW Manitowoc Co., Inc. 5.64 5.60 0.04 0.71% 18.85 4.00 137020 772792.8
NYSE MLI Mueller Industries, Inc. 35.32 31.81 3.51 11.03% 35.52 23.09 57130 2017831.6
NYSE NWL Newell Rubbermaid, Inc. 48.69 48.46 0.23 0.47% 50.90 33.26 456680 22235749.2
OTC NSANY Nissan Motor Co. Ltd. 19.67 19.24 0.43 2.23% 21.92 16.57 2100000 41307000
NASD NTK Nortek, Inc. 86.62 50.01 36.61 73.21% 92.96 33.85 16010 1386786.2
NASD OFLX OmegaFlex, Inc. 35.67 37.43 -1.76 -4.70% 43.20 27.51 10090 359910.3
NYSE PH Parker-Hannifin Corp. 113.68 111.62 2.06 1.85% 117.78 83.32 134680 15310422.4
NYSE RBC Regal-Beloit Corp. 60.08 57.60 2.48 4.31% 73.97 47.77 44730 2687378.4
NYSE ROK Rockwell Automation 119.16 115.58 3.58 3.10% 124.07 87.53 130260 15521781.6
OTC SIEGY Siemens Aktiengesellschaft  104.57 103.21 1.36 1.32% 112.00 86.58 808890 84585627.3
NYSE SPXC SPX Corp.  16.05 14.93 1.12 7.50% 17.33 7.62 41610 667840.5
NYSE TXN Texas Instruments 64.85 61.69 3.16 5.12% 65.26 43.49 1000000 64850000
NYSE UTX United Technologies Corp. 105.50 100.54 4.96 4.93% 111.47 83.39 836870 88289785
NYSE WSO Watsco, Inc. 138.90 133.49 5.41 4.05% 144.69 106.58 27520 3822528

 

The HVACR Business Stock Index rose 40.69 points, or 3.44 percent, and closed at 1223.32, the highest close in over a year. Advancing issues dominated declining issues by a 28-to-4 count.

Shares of Nortek surged after the company agreed to a merger with London-based Melrose Industries. The deal, valued at $2.8 billion, priced NTK at $56 per share and was approved by boards of both companies.

“We are very pleased to have reached the proposed agreement with Melrose Industries, which represents a significant premium for our shareholders,” said Nortek’s CEO Michael Clarke. “We believe this transaction will be a positive for our employees and customers alike.”

NTK jumped 36.61 points, or 73.21 percent, and was the top dollar and percentage gainer in the index. Nortek closed at 86.62.

There was no outstanding news attributed to OmegaFlex, the top dollar and percentage loser this month, but index component ABB Ltd faltered, shedding 0.33 points or 1.62 percent. ABB paid a dividend of $0.76 per share to shareholders of record as of July 8. ABB will report earnings on July 21, after production deadlines. ABB ended at 20 even.

Lennox jumped 12.52 points, or 9.24 percent and closed at 148.00. Moody’s Investment Service upped its outlook for LII to “stable” from “negative,” citing the company’s operating results, credit and liquidity. Their rating for Lennox is Baa3. Lennox will report earnings July 18.

 


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

 




About Margot Crabtree

Margot 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 tradetrendsonline.com.

 

 




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