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Sharp Drop in Oil Sets Markets Adrift

Originally published: 02.01.15 by Margot Crabtree


The S&P 500 posted its best weekly showing in almost two months and the best day in 2014 as our session began; the Dow industrials had its best day in three years. The mood turned negative as the New Year began, however, and markets were mixed as our trading session closed Jan. 15, 2105. 

The upswing started when the Federal Reserve praised the strengthening U.S. economy, but said it was in no hurry to raise interest rates. The Consumer Price Index fell 0.3 percent, the largest drop since Dec. 2008, largely on oil’s fall. In the last days of December, the Dow industrials closed above 18,000 for the first time ever. 

The Commerce Department said that the economy grew at a brisk 5 percent in the third quarter, the fastest rate in 11 years. The University of Michigan’s December sentiment index rose sharply to 93.6, from a reading of 88.8 in November, making it the highest reading since January 2007, almost a year before the recession began. 

The Commerce Department reported that a 1.7 percent decline in government expenditures was a major factor in the slippage of construction spending in November, down 0.3 percent. The Institute for Supply Management said that manufacturing


was hit by a downturn in orders and production, and its index slipped to 55.5 in December, from 58.7 in November. 

November factory orders fell for the fourth straight month; the Commerce Department reported numbers down 0.7 percent. 

Jack Ablin, the chief investment officer at BMO Private Bank, said that recent movement in the markets has been the economy versus the markets. “There’s a divergence,” he said. “The financial markets are worried about the impact of plunging oil prices, at the same time the economic backdrop in the U.S. is improving.”

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. 21.30 20.89 0.41 1.96% 23.09 16.78 54470 1160211
NYSE ABB ABB Ltd. 20.12 20.50 -0.38 -1.85% 27.25 19.26 2280000 45873600
NYSE ARG Airgas, Inc. 111.44 110.20 1.24 1.13% 118.75 99.32 74700 8324568
NYSE AOS AO Smith Corp. 54.23 53.46 0.77 1.44% 57.40 44.14 89540 4855754.2
NYSE FIX Comfort Systems USA, Inc. 16.16 15.56 0.60 3.86% 19.69 12.63 37640 608262.4
NYSE DOV Dover Corp. 68.59 67.76 0.83 1.22% 91.84 67.13 165360 11342042.4
NASD ELON Echelon Corp. 1.42 1.72 -0.30 -17.44% 4.18 1.38 43960 62423.2
NYSE DD E. I. DuPont de Nemours & Co. 73.15 69.27 3.88 5.60% 75.82 59.35 905950 66270242.5
NYSE EME EMCOR Group, Inc. 40.17 41.57 -1.40 -3.37% 48.00 38.68 64750 2601007.5
NYSE EMR Emerson Electric Co. 59.38 58.15 1.23 2.12% 70.29 57.76 693630 41187749.4
NYSE FCAU Fiat Chrysler 11.81 11.41 0.40 3.51% 13.76 8.54 1280000 15116800
NYSE F Ford Motor Co. 14.86 14.28 0.58 4.06% 18.12 13.26 3850000 57211000
NYSE GM General Motors Co. 33.43 31.00 2.43 7.84% 39.55 28.82 1610000 53822300
NYSE HON Honeywell International, Inc. 97.11 95.81 1.30 1.36% 102.39 82.89 782810 76018679.1
NASD HDSN Hudson Technologies, Inc. 3.50 3.71 -0.21 -5.66% 4.80 2.55 32030 112105
NYSE IR Ingersoll-Rand Plc 61.55 61.58 -0.03 -0.05% 65.07 52.47 265470 16339678.5
NYSE JCI Johnson Controls, Inc. 44.95 45.64 -0.69 -1.51% 51.91 38.60 666190 29945240.5
NYSE LII Lennox International Inc. 94.78 92.47 2.31 2.50% 98.96 72.61 48040 4553231.2
NYSE LXU LSB Industries, Inc. 30.43 29.29 1.14 3.89% 42.41 28.91 22610 688022.3
NYSE MTW Manitowoc Co., Inc. 17.69 16.95 0.74 4.37% 33.50 16.24 135520 2397348.8
NYSE NWL Newell Rubbermaid, Inc. 37.78 34.78 3.00 8.63% 38.73 28.27 271100 10242158
NYSE MLI Mueller Industries, Inc. 31.78 32.91 -1.13 -3.43% 34.72 27.10 56890 1807964.2
OTC NSANY Nissan Motor Co. Ltd. 16.80 17.31 -0.51 -2.95% 20.27 16.45 2100000 35280000
NASD OFLX OmegaFlex, Inc. 32.54 28.70 3.84 13.38% 39.46 15.93 10090 328328.6
NYSE PH Parker-Hannifin Corp. 119.93 121.92 -1.99 -1.63% 133.41 99.82 148640 17826395.2
NYSE RBC Regal-Beloit Corp. 69.45 70.42 -0.97 -1.38% 80.41 62.15 44690 3103720.5
NYSE ROK Rockwell Automation 104.80 103.38 1.42 1.37% 128.57 98.55 135770 14228696
OTC SIEGY Siemens Aktiengesellschaft  110.06 110.84 -0.78 -0.70% 137.06 103.20 835250 91927615
NYSE SPW SPX Corp.  81.96 78.54 3.42 4.35% 111.47 77.30 41070 3366097.2
NYSE TXN Texas Instruments 52.39 53.07 -0.68 -1.28% 56.00 40.33 1060000 55533400
NYSE UTX United Technologies Corp. 113.52 111.91 1.61 1.44% 120.66 97.30 911660 103491643.2
NYSE WSO Watsco, Inc. 105.61 103.14 2.47 2.39% 111.19 84.28 32330 3414371.3

 

The HVACR Business Stock Index pulled ahead of the national markets, adding 17.60 points, or 1.44 percent, and closing at 1238.73. Advancing issues outpaced declining issues by a 20-to-12 count.

DuPont had a lively session, and closed ahead 3.88 points, or 5.60 percent. In December, DuPont and Monsanto agreed to settle patent infringement lawsuits against each other that were unresolved in a St. Louis docket. Terms of the agreements were not disclosed. 

In January, control of the Board of Directors at DuPont became an issue following news that the hedge fund helmed by investor Nelson Peltz plans to nominate a slate of its own nominees to the board. DuPont closed at 73.15, and was the top dollar gainer.

Shares of Parker-Hannifin stumbled on a downgrade. JPMorgan cut its rating on PH to “underweight” from “neutral.” Analysts cut their price target range to $113-$116, from an earlier $124-127. PH lost 1.99 points, or 1.63 percent, and was the top dollar loser.

Omega Flex rose 3.84 points, or 13.38 percent. A U.S. District Court in Florida dismissed a class action suit, which alleged the company’s corrugated steel tubing was defective and posed a fire damage risk. The dismissal is the third consecutive win in court about the safety of this product. OFLX closed at 32.54, and was the top percentage gainer.   


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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