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Markets Start Earnings Season on a Positive Upturn

Originally published: 04.18.16 by Margot Crabtree


Economic data from previous months reflected a slowing global marketplace and the ravages of rock-bottom oil prices, but the gloom was moderated as earnings season began and our trading session ended April 15, 2016.

It began with a National Association of Realtors existing home sales report sliding 7.1 percent in February, switching from months of gains as low inventories escalated prices and dampened sales.

On the flip side, the Commerce Department said that new home sales rose 2 percent, on the back of home sales in the West, which jumped 38.5 percent in February after huge declines in January.

The National Association of Realtors said that contracts to buy homes increased in February, with a spike in the Midwest, as its pending home sales index increased 3.5 percent to 109.1, its highest level since July 2015. The National Association of Home Builders/Wells Fargo builder sentiment index remained flat in March, at 58.

The Institute for Supply Management's manufacturing index rose to 51.8 in March, from February's 49.5; any number above 50 signals expansion. This ends five months of declines in factory activity. The Federal Reserve said factory output fell in March for the second straight month, down 0.3 percent,


after a 0.1 percent decline in February.

The University of Michigan's consumer sentiment index fell to 91 in March, from 91.7 in February, its lowest level since October, as people reviewed the country's economic outlook. Conversely, the Conference Board's consumer confidence improved to 96.2 in March after a 94 reading in February.

"The market has been expecting earnings to be absolutely terrible and they are, but they're not quite as terrible as everyone thought and things are looking better ahead," said Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts. "When you combine not-as-bad today with the promise of a better tomorrow, that says that perhaps there's more upside and the market is starting to react to that."

 

Exchange
Symbol
Company Name
Price
4/15/16
Price
3/15/16
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 27.27 25.47 1.80 7.07% 28.28 18.85 53070 1447218.9
NYSE ABB ABB Ltd. 19.79 18.35 1.44 7.85% 23.66 15.74 2190000 43340100
NYSE ARG Airgas, Inc. 142.00 141.35 0.65 0.46% 142.24 86.09 72430 10285060
NYSE AOS AO Smith Corp. 79.23 73.20 6.03 8.24% 81.15 50.09 74760 5923234.8
NYSE FIX Comfort Systems USA, Inc. 32.81 28.83 3.98 13.81% 35.00 13.37 37200 1220532
NYSE DOV Dover Corp. 65.98 61.49 4.49 7.30% 78.21 50.91 155120 10234817.6
NASD ELON Echelon Corp. 5.41 6.00 -0.59 -9.83% 12.10 4.71 4420 23912.2
NYSE DD E. I. DuPont de Nemours & Co. 65.27 62.83 2.44 3.88% 75.72 47.11 871680 56894553.6
NYSE EME EMCOR Group, Inc. 48.46 45.85 2.61 5.69% 52.37 40.98 60660 2939583.6
NYSE EMR Emerson Electric Co. 55.32 50.79 4.53 8.92% 62.75 41.25 643120 35577398.4
NYSE FCAU Fiat Chrysler 7.52 7.60 -0.08 -1.05% 11.01 5.78 1290000 9700800
NYSE F Ford Motor Co. 12.94 13.23 -0.29 -2.19% 16.10 10.44 3910000 50595400
NYSE GM General Motors Co. 30.56 31.05 -0.49 -1.58% 37.45 24.62 1550000 47368000
NYSE HON Honeywell International, Inc. 114.63 108.68 5.95 5.47% 114.99 87.00 761340 87272404.2
NASD HDSN Hudson Technologies, Inc. 3.56 3.48 0.08 2.30% 4.75 2.45 32850 116946
NYSE IR Ingersoll-Rand Plc 63.77 58.64 5.13 8.75% 70.93 47.08 256850 16379324.5
NYSE JCI Johnson Controls, Inc. 39.17 37.66 1.51 4.01% 54.52 33.62 648240 25391560.8
NYSE LII Lennox International Inc. 140.84 132.88 7.96 5.99% 142.49 104.94 43600 6140624
NYSE LXU LSB Industries, Inc. 13.41 10.25 3.16 30.83% 47.33 3.68 23470 314732.7
NYSE MTW Manitowoc Co., Inc. 4.79 4.22 0.57 13.51% 20.85 4.00 137020 656325.8
NYSE MLI Mueller Industries, Inc. 30.49 27.45 3.04 11.07% 37.11 23.09 57180 1743418.2
NYSE NWL Newell Rubbermaid, Inc. 44.33 41.37 2.96 7.15% 50.90 33.26 268070 11883543.1
OTC NSANY Nissan Motor Co. Ltd. 18.38 19.07 -0.69 -3.62% 21.92 16.57 2100000 38598000
NASD NTK Nortek, Inc. 48.18 44.42 3.76 8.46% 92.96 33.85 16310 785815.8
NASD OFLX OmegaFlex, Inc. 35.91 34.12 1.79 5.25% 43.20 25.87 10090 362331.9
NYSE PH Parker-Hannifin Corp. 113.72 108.23 5.49 5.07% 125.33 83.32 135100 15363572
NYSE RBC Regal-Beloit Corp. 67.19 58.61 8.58 14.64% 81.36 47.77 44670 3001377.3
NYSE ROK Rockwell Automation 116.86 107.18 9.68 9.03% 127.05 87.53 131420 15357741.2
OTC SIEGY Siemens Aktiengesellschaft  104.43 100.83 3.60 3.57% 111.49 86.58 807730 84351243.9
NYSE SPXC SPX Corp.  16.91 12.86 4.05 31.49% 21.48 7.62 41860 707852.6
NYSE TXN Texas Instruments 58.93 55.73 3.20 5.74% 59.67 43.49 1010000 59519300
NYSE UTX United Technologies Corp. 104.57 96.29 8.28 8.60% 119.66 83.39 876730 91679656.1
NYSE WSO Watsco, Inc. 135.42 127.88 7.54 5.90% 136.43 106.58 27480 3721341.6

 

The HVACR Business Stock Index rose 54.28 points, or 4.84 percent, and closed at 1175.02. Advancing issues dominated declining issues by a 28-to-5 count.

Rockwell Automation jumped 9.68 points, or 9.03 percent. ROK's board approved an additional $1 billion to its share repurchase program, which expands the program initially authorized in 2014 at $1 billion in buy-backs. Morgan Stanley increased its price target on Rockwell to $101, from $91. ROK will announce earnings in late April. Rockwell ended at 116.86, and was the top dollar gainer.

Despite posting record sales in March, shares of Nissan fell 0.69 points, or 3.62 percent. NSANY sold more vehicles in the U.S. in the month, at 163,559, than in any previous month, and 12.7 percent ahead of a year ago. It missed Edwards.com analysts' expectations of 14.4 percent growth, but exceeded Kelly Blue Book projections of 9.6 percent. Nissan closed at 18.38, and was the top dollar loser.

SPX Corp. rose 4.05 points, or 31.49 percent after reporting the completion of its dry cooling business to India's Parharpur Cooling Towers Limited, for about $48 million. Credit Suisse upgraded SPXC to "outperform" from "neutral." SPX Corp. ended at 16.91, 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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