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Wall Street Roughed up to Begin 2016

Originally published: 01.21.15 by Margot Crabtree


Oil rose in the first week of our session, but the tumbling energy sector fell and fell again. As our trading session ended Jan. 15, 2016, it capped the worst two-week start to a year ever.

The Commerce Department reported that incomes improved 0.3 percent in November after rising 0.4 percent. Wages and salaries also increased, as did consumer spending in the month, up 0.3 percent, in line with expectations. Also announced was an increase in sales of new homes in November.

The Commerce Department said that number was up 4.3 percent; October's figures were revised sharply downward. The Commerce Department said that overall construction spending fell 0.4 percent in November, the first decline since June 2014.

December's consumer sentiment index from the University of Michigan's grew to 92.6 from 91.3. It was the highest level since July. The Conference Board's December consumer confidence index increased to 96.5, from November's 92.6.

Despite an improving labor market, it was the worst year for the stock market since 2008. Wall Street hit market highs early in the year, but those gains evaporated in August with a slowdown in the Chinese economy and the world oversupply of oil, which hammered all stocks. In the face of economic news worldwide, the U.S. added a robust 292,000 jobs in December,


and the Labor Department said that unemployment remained at 5 percent.

The Institute for Supply Management said that its index of factory activity slid below 50 in the last two months of the year. A number below 50 in the index indicates contraction. Matters remained dismal in our final week, with little going on except China worries and the fall of oil, down to its lowest level in 12 years.

Earnings season began with Alcoa on a down-note, and there was little optimism from investors on that score. But the primary drumbeats this session were on oil and China.

"Initially when oil was down, the convenient line was 'Well, it's good for the other nine sectors,'" said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "That tune has changed. Now, it's a contagion to the other nine sectors. It's a contagion to Main Street and Wall Street."

Exchange
Symbol
Company Name
Price
1/15/16
Price
12/15/15
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 19.83 23.38 -3.55 -15.18% 25.34 18.85 54090 1072604.7
NYSE ABB ABB Ltd. 16.06 17.91 -1.85 -10.33% 23.66 15.98 2220000 35653200
NYSE ARG Airgas, Inc. 138.30 136.66 1.64 1.20% 139.22 86.09 72200 9985260
NYSE AOS AO Smith Corp. 63.51 77.75 -14.24 -18.32% 81.15 50.09 74890 4756263.9
NYSE FIX Comfort Systems USA, Inc. 28.09 30.93 -2.84 -9.18% 35.00 15.58 37290 1047476.1
NYSE DOV Dover Corp. 52.90 62.11 -9.21 -14.83% 78.21 52.70 154970 8197913
NASD ELON Echelon Corp. 5.15 5.54 -0.39 -7.04% 15.80 4.80 4420 22763
NYSE DD E. I. DuPont de Nemours & Co. 54.09 66.50 -12.41 -18.66% 76.59 47.11 876410 47405016.9
NYSE EME EMCOR Group, Inc. 43.66 48.71 -5.05 -10.37% 52.37 39.83 62720 2738355.2
NYSE EMR Emerson Electric Co. 43.09 45.22 -2.13 -4.71% 62.75 42.17 651370 28067533.3
NYSE FCAU Fiat Chrysler 7.34 8.88 -1.54 -17.36% 11.24 7.15 1290000 9468600
NYSE F Ford Motor Co. 11.97 13.87 -1.90 -13.70% 16.74 10.44 3900000 46683000
NYSE GM General Motors Co. 29.57 34.54 -4.97 -14.39% 38.99 24.62 1540000 45537800
NYSE HON Honeywell International, Inc. 97.26 98.47 -1.21 -1.23% 107.41 87.00 770690 74957309.4
NASD HDSN Hudson Technologies, Inc. 2.77 2.85 -0.08 -2.81% 4.75 2.45 32800 90856
NYSE IR Ingersoll-Rand Plc 51.74 53.50 -1.76 -3.29% 70.93 49.74 261050 13506727
NYSE JCI Johnson Controls, Inc. 34.71 39.38 -4.67 -11.86% 54.52 33.62 647910 22488956.1
NYSE LII Lennox International Inc. 115.77 129.22 -13.45 -10.41% 138.57 93.16 45060 5216596.2
NYSE LXU LSB Industries, Inc. 5.20 5.49 -0.29 -5.28% 47.33 4.60 22810 118612
NYSE MTW Manitowoc Co., Inc. 12.83 14.31 -1.48 -10.34% 22.91 12.55 136590 1752449.7
NYSE MLI Mueller Industries, Inc. 23.83 28.10 -4.27 -15.20% 37.18 23.09 57160 1362122.8
NYSE NWL Newell Rubbermaid, Inc. 37.13 44.13 -7.00 -15.86% 50.90 36.10 267200 9921136
OTC NSANY Nissan Motor Co. Ltd. 18.41 20.37 -1.96 -9.62% 21.92 16.65 2100000 38661000
NASD NTK Nortek, Inc. 37.52 42.08 -4.56 -10.84% 92.96 35.40 16260 610075.2
NASD OFLX OmegaFlex, Inc. 29.00 39.60 -10.60 -26.77% 43.20 23.50 10090 292610
NYSE PH Parker-Hannifin Corp. 87.99 95.69 -7.70 -8.05% 125.94 87.39 135980 11964880.2
NYSE RBC Regal-Beloit Corp. 52.27 57.86 -5.59 -9.66% 81.36 51.66 44660 2334378.2
NYSE ROK Rockwell Automation 91.68 101.54 -9.86 -9.71% 127.05 89.48 131790 12082507.2
OTC SIEGY Siemens Aktiengesellschaft  88.83 96.09 -7.26 -7.56% 115.00 87.88 808620 71829714.6
NYSE SPXC SPX Corp.  8.01 8.94 -0.93 -10.40% 22.90 7.62 40800 326808
NYSE TXN Texas Instruments 48.03 57.55 -9.52 -16.54% 59.99 43.49 1010000 48510300
NYSE UTX United Technologies Corp. 85.63 93.26 -7.63 -8.18% 124.45 85.47 887020 75955522.6
NYSE WSO Watsco, Inc. 109.85 119.94 -10.09 -8.41% 133.09 103.52 27610 3032958.5

The HVACR Business Stock Index also faltered, shedding 126.72 points, or 11.14 percent, and ending at 1010.83. Declining issues nearly shut out advancing issues at a 32-to-1 count.

A.O. Smith endured a couple of ratings cuts, and fell 14.24 points, or 18.32 percent. Maxim group downgraded AOS to "hold" from "buy," and Zacks Investment Research cut AOS to "sell" from "hold," citing the influence of the devaluation of Chinese currency, as well as a decline in sales in India and Europe. AOS ended at 63.51, and was the top dollar loser.

Airgas rose 1.64 points, or 1.20 percent. ARG has a consensus rating of "hold" from the fourteen firms that cover the stock, with a target price of $124. Airgas ended at 138.30, and was the top dollar and percentage gainer.

Lennox International tumbled 13.45 points, or 10.41 percent. Investment firm William Blair initiated coverage on LII with a rating of "outperform." Lennox closed at 115.77.

 


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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