Facebook Twitter LinkedIn Google+


Inflation Fears Vie with Earnings; Earnings Win

Originally published: 05.16.18 by Margot Crabtree


Markets were choppy with inflationary concerns and trade war jitters, but ended with a broad rally powered by health care, tech and energy as our trading session ended May 15, 2018.

The Commerce Department reported a slowdown in the U.S. economy in the first quarter, with the gross domestic product (GDP) up a modest 2.3 percent annual growth rate; consumer spending was the softest in almost five years. The fourth quarter 2017 GDP rose 2.9 percent. The Conference Board reported that its consumer confidence index rose to 128.7 in April, from March’s 127.0.

The Federal Reserve said that factory output in the U.S. rose 0.1 percent in March. The Institute for Supply Management said that its index of factory activity slid to 57.3 in April, from March’s 59.3, but expansion is still indicated despite the slowdown.

The Labor Department said that wages and salaries in the private sector rose at the steepest pace in the first quarter since the first quarter in 2007, contributing to inflationary worries. The department reported a modest inflation rate for April. Although the consumer price index (CPI) increased 0.2 percent, with the volatile food and energy prices stripped out, core prices were up 0.1 percent. Producer prices,


which tally increases before they reach the consumer, were also moderate.

The Labor Department announced an 8 percent rise in job openings in March. That put unemployment and available jobs in a rare balance, as there are typically many more openings than job seekers. The 6.55 million open jobs are the most since record-keeping began in December 2000. It was positive news all around.

“The CPI came in at a level where it’s not so alarming as far as what the Fed is thinking,” said Mark Kepner, equity trader at Themis Trading in Chatham, New Jersey. “There’s comfort that the Fed won’t have to move too quickly.”

Exchange
Symbol
Company Name
Price
5/15/18
Price
4/13/18
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 29.50 34.45 -4.95 -14.37% 40.25 29.05 52360 1544620
NYSE ABB ABB Ltd. 23.82 22.86 0.96 4.20% 28.67 21.92 2130000 50736600
NYSE AOS AO Smith Corp. 62.98 63.79 -0.81 -1.27% 68.39 52.90 145080 9137138.4
NYSE FIX Comfort Systems USA, Inc. 44.75 40.65 4.10 10.09% 48.95 31.90 37040 1657540
NYSE DOV Dover Corp. 76.95 75.82 1.13 1.50% 88.09 62.08 154680 11902626
NASD ELON Echelon Corp. 4.19 4.48 -0.29 -6.47% 7.20 4.07 4540 19022.6
NYSE DWDP DowDuPont 67.15 66.17 0.98 1.48% 77.08 59.29 2320000 155788000
NYSE EME EMCOR Group, Inc. 75.47 78.78 -3.31 -4.20% 85.08 61.97 58460 4411976.2
NYSE EMR Emerson Electric Co. 71.83 68.42 3.41 4.98% 74.45 57.36 630090 45259364.7
NYSE FCAU Fiat Chrysler 22.38 23.41 -1.03 -4.40% 24.95 10.16 1540000 34465200
NYSE F Ford Motor Co. 11.22 11.28 -0.06 -0.53% 13.48 10.14 3910000 43870200
NYSE GM General Motors Co. 36.94 38.73 -1.79 -4.62% 46.76 31.92 1410000 52085400
NYSE HON Honeywell International, Inc. 147.35 146.12 1.23 0.84% 165.13 129.00 746930 110060135.5
NASD HDSN Hudson Technologies, Inc. 2.52 4.42 -1.90 -42.99% 10.40 2.50 42400 106848
NYSE IR Ingersoll-Rand Plc 88.88 84.13 4.75 5.65% 97.67 79.63 247960 22038684.8
NYSE JCI Johnson Controls, Inc. 36.27 34.08 2.19 6.43% 44.37 32.89 922600 33462702
NYSE LII Lennox International Inc. 199.13 198.71 0.42 0.21% 223.05 160.18 41240 8212121.2
NYSE LXU LSB Industries, Inc. 5.42 6.16 -0.74 -12.01% 11.71 5.29 28610 155066.2
NYSE MTW Manitowoc Co., Inc. 25.50 28.12 -2.62 -9.32% 44.03 21.24 35520 905760
NYSE MLI Mueller Industries, Inc. 29.28 26.71 2.57 9.62% 37.57 25.26 57560 1685356.8
NYSE NWL Newell Brands, Inc. 26.34 25.72 0.62 2.41% 55.08 23.85 485700 12793338
OTC NSANY Nissan Motor Co. Ltd. 20.43 20.84 -0.41 -1.97% 22.14 18.74 3910000 79881300
NASD OFLX OmegaFlex, Inc. 72.10 66.50 5.60 8.42% 76.63 53.50 10090 727489
NYSE PH Parker-Hannifin Corp. 176.66 172.48 4.18 2.42% 212.80 151.17 132960 23488713.6
NYSE RBC Regal-Beloit Corp. 79.30 72.20 7.10 9.83% 87.50 67.84 43980 3487614
NYSE ROK Rockwell Automation 178.18 172.88 5.30 3.07% 210.72 151.78 125580 22375844.4
OTC SIEGY Siemens Aktiengesellschaft  68.89 64.65 4.24 6.56% 77.17 61.68 815520 56181172.8
NYSE SPXC SPX Corp.  33.45 32.58 0.87 2.67% 33.97 23.41 42970 1437346.5
NYSE TXN Texas Instruments 109.21 102.16 7.05 6.90% 120.75 75.92 981720 107213641.2
NYSE UTX United Technologies Corp. 124.55 122.71 1.84 1.50% 139.24 109.10 800060 99647473
NYSE WSO Watsco, Inc. 178.77 183.41 -4.64 -2.53% 192.94 136.14 29070 5196843.9
 
 
Price 5/15/18
Price 4/13/18
Net Change
Percent Change
HVACR Business Stock Index 1,555.28 1,534.31 20.97 1.37%
Dow Jones Industrial Average 24,706.41 24,360.14 346.27 1.42%
S&P 500 Index 2,711.45 2,656.30 55.15 2.08%
NASDAQ Composite 7,351.63 7,106.65 244.98 3.45%

 

Gainers/Losers
$ Gainer Regal-Beloit Corp. 7.10
$ Loser AAON, Inc. -4.95
 
% Gainer Comfort Systems USA, Inc. 10.09%
% Loser Hudson Technologies, Inc. -42.99%
 
Advancers 19
Decliners 12

 

The HVACR Business Stock Index rose 20.97 points, or 1.37 percent, and closed at 1555.28. Advancing issues topped declining issues at a 19-to-12 count.

Regal Beloit jumped 7.10 points, or 9.83 percent. RBC posted first quarter net income of $58.4 million, or $1.31 per share, compared to last year’s $46.3 million, or $1.02 per share. Adjusted for restructuring, RBC earned $1.34 per share, versus $1.07 per share a year ago.

Revenue was $878.8 million, from last year’s $813.5 million. Analysts surveyed by Zack’s expected earnings of $1.26 per share and revenue of $867.2 million. Regal Beloit ended at 79.30, and was the top dollar gainer.

AAON posted first quarter net income of $4.3 million, or $0.08 per share. Last year’s net income was $10.2 million, or $0.19 per share. Revenue was $99.1 million. The consensus estimate on earnings was $0.24 per share. AAON fell 4.95 points, or 14.37 percent, and was the top dollar loser. AAON closed at 29.50.

Comfort Systems increased 4.10 points, or 10.09 percent. FIX reported net income of $16.7 million, or $0.44 per share, from $7.5 million, or $0.20 per share in last year’s first quarter. Revenue was $464.9 million, compared to $380.6 million in the year-ago quarter. FIX ended at 44.75, and was the top percentage gainer.

 




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.

 

 




Articles by Margot Crabtree

Tariff Wars Create Market Jitters as Wall Street Begins Earnings Season

The HVACR Business Stock Index fell 45.11 points, or 2.85 percent, and closed at 1538.98. Declining issues outpaced advancing issues by a 20-to-11 count.
View article.

 

Geopolitical, Trade Tensions Continue; Wall Street Remains Positive

The HVACR Business Stock Index rose 28.81 points, or 1.85 percent. Advancing issues topped declining issues by a 17-to-14 count.
View article.

 

Inflation Fears Vie with Earnings; Earnings Win

The HVACR Business Stock Index rose 20.97 points, or 1.37 percent, and closed at 1555.28. Advancing issues topped declining issues at a 19-to-12 count.
View article.

 

Markets Falter with Political Turmoil and Trade War Concerns

The HVACR Business Stock index shed 48.27 points, or 3.05 percent, and closed at 1534.31. Declining issues outweighed advancing issues by a 25-to-6 count.
View article.

 

Tariffs Collide with Bull Market; Stocks End Mixed

The HVACR Business Stock Index slid 32.80 points, or 2.03 percent, and closed at 1582.58. Declining issues passed advancing issues at a 19-to-12 count.
View article.