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Markets Falter with Political Turmoil and Trade War Concerns

Originally published: 04.17.18 by Margot Crabtree


A month made turbulent with politics and threats of a trade war ended in the red as our session closed April 13, 2018.

The Federal Reserve moved as expected to increase short-term interest rates by a quarter point, to 1.75 percent. The Fed also said it plans to raise rates twice more in 2018, and upped anticipated hikes in 2019 from two to three. Retail sales slipped for the third straight month as the Commerce Department reported a decline of 0.1 percent in February.

The Conference Board reported that its consumer confidence index slid to 127.7 in March, from February’s 130, the highest reading since Nov. 2000.

The National Association of Home Builders/Wells Fargo builder sentiment index fell in March to 70, the third consecutive month of declines. The Commerce Department said that construction spending increased just 0.1 percent in February.

The listless pace came from a 2.1 percent drop in government spending for construction, although hotel and office building increased from the month before. Road construction fell.

The Federal Reserve said that factory output increased by 1.2 percent in February, with gains in furniture, cars and computers. The Commerce Department reported that orders for durable goods rose 3.1 percent in February, beating


economists’ forecasts.

The pace of factory growth slowed in March: the Institute for Supply management said that its manufacturing index slid to 59.3, from February’s 60.8. Any figure above 50 indicates growth. Trade fears began to wane as our session came to a close and investors began to eye the earnings reporting season just beginning.

“Every day the market wakes up and it struggles with whether it should pay attention to noise or pay attention to fundamentals,” said Marina Severinovsky, an investment strategist at Schroders.

 

Exchange
Symbol
Company Name
Price
4/13/18
Price
3/15/18
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 34.45 38.80 -4.35 -11.21% 40.25 29.95 52430 1806213.5
NYSE ABB ABB Ltd. 22.86 24.13 -1.27 -5.26% 28.67 21.92 2130000 48691800
NYSE AOS AO Smith Corp. 63.79 65.24 -1.45 -2.22% 68.39 49.64 145470 9279531.3
NYSE FIX Comfort Systems USA, Inc. 40.65 42.35 -1.70 -4.01% 44.80 31.90 37100 1508115
NYSE DOV Dover Corp. 93.86 99.12 -5.26 -5.31% 109.06 76.47 154580 14508878.8
NASD ELON Echelon Corp. 4.48 4.67 -0.19 -4.07% 7.20 4.10 4520 20249.6
NYSE DWDP DowDuPont 66.17 67.88 -1.71 -2.52% 77.08 59.29 2330000 154176100
NYSE EME EMCOR Group, Inc. 78.78 80.40 -1.62 -2.01% 85.08 60.30 58370 4598388.6
NYSE EMR Emerson Electric Co. 68.42 70.93 -2.51 -3.54% 74.45 56.77 634840 43435752.8
NYSE FCAU Fiat Chrysler 23.41 21.14 2.27 10.74% 24.95 9.60 1540000 36051400
NYSE F Ford Motor Co. 11.28 11.07 0.21 1.90% 13.48 10.14 3920000 44217600
NYSE GM General Motors Co. 38.73 37.85 0.88 2.32% 46.76 31.92 1400000 54222000
NYSE HON Honeywell International, Inc. 146.12 151.07 -4.95 -3.28% 165.13 122.40 748380 109353285.6
NASD HDSN Hudson Technologies, Inc. 4.42 5.48 -1.06 -19.34% 10.40 4.39 42400 187408
NYSE IR Ingersoll-Rand Plc 84.13 90.22 -6.09 -6.75% 97.67 81.25 249890 21023245.7
NYSE JCI Johnson Controls, Inc. 34.08 37.05 -2.97 -8.02% 44.37 33.23 926120 31562169.6
NYSE LII Lennox International Inc. 198.71 211.44 -12.73 -6.02% 223.05 160.18 41180 8182877.8
NYSE LXU LSB Industries, Inc. 6.16 6.97 -0.81 -11.62% 11.71 5.36 28600 176176
NYSE MTW Manitowoc Co., Inc. 28.12 29.94 -1.82 -6.08% 44.03 21.20 35430 996291.6
NYSE MLI Mueller Industries, Inc. 26.71 27.98 -1.27 -4.54% 37.57 25.26 57560 1537427.6
NYSE NWL Newell Brands, Inc. 25.72 28.89 -3.17 -10.97% 55.08 23.85 485660 12491175.2
OTC NSANY Nissan Motor Co. Ltd. 20.84 21.17 -0.33 -1.56% 22.14 18.60 3910000 81484400
NASD OFLX OmegaFlex, Inc. 66.50 63.52 2.98 4.69% 76.63 47.00 10090 670985
NYSE PH Parker-Hannifin Corp. 172.48 180.08 -7.60 -4.22% 212.80 151.17 133050 22948464
NYSE RBC Regal-Beloit Corp. 72.20 73.30 -1.10 -1.50% 87.50 67.84 43970 3174634
NYSE ROK Rockwell Automation 172.88 181.76 -8.88 -4.89% 210.72 148.31 127780 22090606.4
OTC SIEGY Siemens Aktiengesellschaft  64.65 65.51 -0.86 -1.31% 77.17 61.68 815520 52723368
NYSE SPXC SPX Corp.  32.58 31.10 1.48 4.76% 33.93 21.97 42950 1399311
NYSE TXN Texas Instruments 102.16 109.71 -7.55 -6.88% 120.75 75.92 983110 100434517.6
NYSE UTX United Technologies Corp. 122.71 129.25 -6.54 -5.06% 139.24 109.10 800090 98179043.9
NYSE WSO Watsco, Inc. 183.41 181.38 2.03 1.12% 189.72 134.08 29020 5322558.2
 
 
Price 4/13/18
Price 3/15/18
Net Change
Percent Change
HVACR Business Stock Index 1,534.31 1,582.58 -48.27 -3.05%
Dow Jones Industrial Average 24,360.14 24,873.66 -513.52 -2.06%
S&P 500 Index 2,656.30 2,747.33 -91.03 -3.31%
NASDAQ Composite 7,106.65 7,481.74 -375.09 -5.01%

 

Gainers/Losers
$ Gainer OmegaFlex, Inc. 2.98
$ Loser Lennox International Inc. -12.73
 
% Gainer Fiat Chrysler 10.74%
% Loser Hudson Technologies, Inc. -19.34%
 
Advancers 6
Decliners 25

 

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.

Lennox International tumbled 12.73 points, or 6.02 percent. Lennox said it will sell its refrigeration businesses in South America, Asia and Australia to allow the company to focus on its European and U.S. divisions. The company is also selling its various real estate holding related to the businesses in those areas. Proceeds from the sales are expected at about $110 million.  Investment firm Stifel upped its price target on LII to $218, from $206. LII closed at 198.71, and was the top dollar loser. 

Fiat Chrysler rose 2.27 points, or 10.74 percent. The company announced that it plans to spin off its Magneti Marelli components unit, part of its five-year plan.

“The separation will deliver value to FCA shareholders, while providing the operational flexibility necessary for Magneti Marelli's strategic growth in the coming years,” Fiat Chysler CEO Sergio Marchionne said in a statement. “The spin-off will also allow FCA to further focus on its core portfolio while at the same time improving its capital position.”

FCAU ended at 23.41, and was the top percentage gainer.

Despite an upgrade, shares of Rockwell Automation fell 8.88 points, or 4.89 percent. Investment firm Wells Fargo upped its rating to “outperform” from “market perform.” Rockwell closed at 172.88.

 




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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