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Rough-and-Tumble Earnings and Economics Push Markets into Negative Terrain

Originally published: 05.16.16 by Margot Crabtree


Concerns about global growth led to a drop in equities as our trading began, and see-sawed through the session as it ended May 13, 2016.

The National Association of Realtors said that it's pending home sales index rose 1.4 percent to 110.5, the highest level since May 2015. However, new single-family home sales were down in a Commerce Department report for March. The Commerce Department said that overall construction spending rose 0.3 percent in March, the highest level in more than eight years.

The Commerce Department said that factory orders increased 1.1 percent in March, from a 1.9 percent decline in February, the second improvement in orders in the last five months. Economists polled by Reuters expected only a 0.6 percent increase. U.S. manufacturers have faced a strong dollar, poor growth worldwide and a big drop in oil prices.

Retailers pressured markets as earnings disappointed in our final week, and the Commerce Department reported an uptick in retail sales for April, up 1.3 percent. It was biggest gain since March 2015.

The University of Michigan's consumer sentiment index shot up 6.8 percent in early May, to 95.8, increasing in all income and age groups.

"I don't see any conviction on the part of


buyers or sellers at this point," said Warren West, principal at Greentree Brokerage Services in Philadelphia. "It's a slow, grinding economy, so you're going to get slow, grinding stocks."

 

Exchange
Symbol
Company Name
Price
5/13/16
Price
4/15/16
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 27.85 27.27 0.58 2.13% 28.61 18.85 53020 1476607
NYSE ABB ABB Ltd. 20.20 19.79 0.41 2.07% 23.66 15.74 2160000 43632000
NYSE ARG Airgas, Inc. 142.94 142.00 0.94 0.66% 143.05 86.09 72430 10353144.2
NYSE AOS AO Smith Corp. 78.25 79.23 -0.98 -1.24% 82.29 50.09 74760 5849970
NYSE FIX Comfort Systems USA, Inc. 30.90 32.81 -1.91 -5.82% 35.00 21.90 37200 1149480
NYSE DOV Dover Corp. 64.93 65.98 -1.05 -1.59% 78.21 50.91 155150 10073889.5
NASD ELON Echelon Corp. 4.57 5.41 -0.84 -15.53% 9.80 4.52 4420 20199.4
NYSE DD E. I. DuPont de Nemours & Co. 62.91 65.27 -2.36 -3.62% 75.72 47.11 873510 54952514.1
NYSE EME EMCOR Group, Inc. 46.72 48.46 -1.74 -3.59% 52.37 40.98 60700 2835904
NYSE EMR Emerson Electric Co. 51.81 55.32 -3.51 -6.34% 62.75 41.25 643350 33331963.5
NYSE FCAU Fiat Chrysler 7.65 7.52 0.13 1.73% 10.93 5.78 1290000 9868500
NYSE F Ford Motor Co. 13.22 12.94 0.28 2.16% 15.84 10.44 3900000 51558000
NYSE GM General Motors Co. 30.52 30.56 -0.04 -0.13% 36.88 24.62 1540000 47000800
NYSE HON Honeywell International, Inc. 113.20 114.63 -1.43 -1.25% 116.56 87.00 762120 86271984
NASD HDSN Hudson Technologies, Inc. 3.53 3.56 -0.03 -0.84% 4.17 2.45 32970 116384.1
NYSE IR Ingersoll-Rand Plc 65.59 63.77 1.82 2.85% 70.93 47.08 257460 16886801.4
NYSE JCI Johnson Controls, Inc. 40.81 39.17 1.64 4.19% 54.52 33.62 648370 26459979.7
NYSE LII Lennox International Inc. 137.51 140.84 -3.33 -2.36% 143.19 105.65 43610 5996811.1
NYSE LXU LSB Industries, Inc. 13.80 13.41 0.39 2.91% 44.76 3.68 23870 329406
NYSE MTW Manitowoc Co., Inc. 5.89 4.79 1.10 22.96% 20.72 4.00 137020 807047.8
NYSE MLI Mueller Industries, Inc. 29.91 30.49 -0.58 -1.90% 36.39 23.09 57130 1708758.3
NYSE NWL Newell Rubbermaid, Inc. 47.49 44.33 3.16 7.13% 50.90 33.26 456680 21687733.2
OTC NSANY Nissan Motor Co. Ltd. 18.86 18.38 0.48 2.61% 21.92 16.57 2100000 39606000
NASD NTK Nortek, Inc. 49.78 48.18 1.60 3.32% 92.96 33.85 16310 811911.8
NASD OFLX OmegaFlex, Inc. 33.50 35.91 -2.41 -6.71% 43.20 27.51 10090 338015
NYSE PH Parker-Hannifin Corp. 109.77 113.72 -3.95 -3.47% 125.33 83.32 134680 14783823.6
NYSE RBC Regal-Beloit Corp. 56.47 67.19 -10.72 -15.95% 81.36 47.77 44670 2522514.9
NYSE ROK Rockwell Automation 113.08 116.86 -3.78 -3.23% 127.05 87.53 130260 14729800.8
OTC SIEGY Siemens Aktiengesellschaft  105.29 104.43 0.86 0.82% 111.05 86.58 808890 85168028.1
NYSE SPXC SPX Corp.  15.92 16.91 -0.99 -5.85% 19.68 7.62 41610 662431.2
NYSE TXN Texas Instruments 57.12 58.93 -1.81 -3.07% 60.60 43.49 1000000 57120000
NYSE UTX United Technologies Corp. 100.27 104.57 -4.30 -4.11% 119.66 83.39 836870 83912954.9
NYSE WSO Watsco, Inc. 131.97 135.42 -3.45 -2.55% 138.30 106.58 27520 3631814.4

 

The HVACR Business Stock Index edged slightly lower, off just 5.16 points, or 0.44 percent. Declining issues outpaced advancing issues by a 20-to-13 count.

Newell Rubbermaid, now Newell Brands following its merger with Jarden Corp, added 3.16 points, or 7.13 percent and closed at 47.49. For its first quarter, NWL reported net income of $40.5 million, or $0.15 per share, versus net income of $54.1 million, or $0.20 per share a year ago. Sales were $1.31 billion.

Adjusted for one-time items, Newell earned $0.40 per share. Analysts polled by Zacks expected NWL to earn $0.40 per share and earn revenue of $1.28 billion. Analysts at Jefferies upped Newell's price target to $59, and Morgan Stanley re-iterated its "buy" rating on the stock. NWL closed at 47.49, and was the top dollar gainer.

Regal Beloit fell short of expectations for its first quarter, and tumbled 10.72 points, or 15.95 percent. RBC said it earned $41.6 million, or $0.93 per share, and revenue of $818.2 million. Adjusted for one-time items, RBC earned $0.95 per share.

Analysts polled by Zacks expected earnings of $1.09 per share and revenue of $855.3 million. KeyBanc Capital Markets cut its rating on Regal Beloit to "sector weight" from "overweight, and Morgan Stanley downgraded RBC to "equal weight" from "overweight." RBC ended at 56.47, and was the top dollar and percentage loser.

Although United Technologies exceeded on first quarter earnings and revenue, shares slid 4.30 points, or 4.11 percent. UTX reported net income of $1.19 billion, or $1.43 per share. Earnings, adjusted for one-time gains and costs, were $1.47 per share. Revenue was $13.36 billion. Analysts polled by Zacks expected earnings of $1.38 per share and revenue $13.03 billion.

RBC Capital Markets cut its rating on UTX to "sector perform" from "outperform," and its price target to $108, citing the cooling of Honeywell's ardor for UTX, as well as the company's valuation. United Technologies closed at 100.27.

 

 


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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