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Volatility Sends Markets into the Red

Originally published: 10.17.16 by Margot Crabtree


Our session began with the news that the Federal Reserve will delay an increase interest rates but will likely make the move in December. The Nasdaq hit a new record after the Fed’s announcement, but as our trading session ended October 14, 2016, many uncertainties dimmed that positive note.

The Commerce Department said that housing starts were down 5.8 percent in August; flooding in the South was blamed. However, the National Association of Home Builders/Wells Fargo builder sentiment index shot up 6 points in September, to 65, from a downwardly revised 59 for August.

The Commerce Department reported that consumer spending fell in August for the first time in seven months, by 0.1 percent; economists polled by Reuters were expecting a gain of 0.1 percent. Conversely, the Conference Board said their consumer confidence index jumped to 104.1, up from 101.8 in August. It was the highest reading since the index hit 105.6 in August, 2007. Economists were expecting a decline after August’s strong reading.

The Institute for Supply Management’s index of national factory activity increased to 51.5 in September, from 49.4 in August, above expectations from analysts surveyed by Reuters, with new orders and increased production.

As our session came to a close,


worries spiked: the British pound tumbled as the Brexit timetable was announced, earnings season is upon us, and the election cycle continues to heat up. Alcoa disappointed and Chinese exports dropped sharply. In between there was little solid ground.

“The data are making the Fed’s current policy look too wrong footed and the markets are waiting for them to get back on track, most likely in December,” said Chris Rupkey, chief economist at MUFG Union Bank in New York.

Exchange
Symbol
Company Name
Price
10/14/16
Price
9/15/16
Net
Change
Percent
Change
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 29.35 27.56 1.79 6.49% 30.80 19.06 52920 1553202
NYSE ABB ABB Ltd. 22.34 22.25 0.09 0.40% 22.92 15.74 2160000 48254400
NYSE AOS AO Smith Corp. 48.93 46.64 2.29 4.91% 51.49 30.15 148270 7254851.1
NYSE FIX Comfort Systems USA, Inc. 27.70 26.62 1.08 4.06% 35.00 24.22 37130 1028501
NYSE DOV Dover Corp. 67.78 68.60 -0.82 -1.20% 74.90 50.91 155220 10520811.6
NASD ELON Echelon Corp. 5.06 5.12 -0.06 -1.17% 7.50 4.41 4430 22415.8
NYSE DD E. I. DuPont de Nemours & Co. 69.03 67.56 1.47 2.18% 75.72 50.71 874330 60354999.9
NYSE EME EMCOR Group, Inc. 57.28 56.23 1.05 1.87% 60.56 40.98 60800 3482624
NYSE EMR Emerson Electric Co. 49.88 51.58 -1.70 -3.30% 56.82 41.25 643540 32099775.2
NYSE FCAU Fiat Chrysler 6.30 6.52 -0.22 -3.37% 10.89 5.45 1290000 8127000
NYSE F Ford Motor Co. 11.91 12.11 -0.20 -1.65% 15.84 11.02 3980000 47401800
NYSE GM General Motors Co. 31.87 31.12 0.75 2.41% 36.88 26.69 1550000 49398500
NYSE HON Honeywell International, Inc. 109.00 115.28 -6.28 -5.45% 120.02 93.71 760880 82935920
NASD HDSN Hudson Technologies, Inc. 6.08 5.71 0.37 6.48% 6.79 2.64 33610 204348.8
NYSE IR Ingersoll-Rand Plc 65.79 63.83 1.96 3.07% 68.97 47.08 258000 16973820
NYSE JCI Johnson Controls, Inc. 43.88 44.28 -0.40 -0.90% 50.65 31.73 635790 27898465.2
NYSE LII Lennox International Inc. 157.62 156.44 1.18 0.75% 164.02 105.65 43470 6851741.4
NYSE LXU LSB Industries, Inc. 5.50 8.51 -3.01 -35.37% 17.83 3.68 27940 153670
NYSE MTW Manitowoc Co., Inc. 4.45 4.38 0.07 1.60% 17.56 4.00 137580 612231
NYSE MLI Mueller Industries, Inc. 31.17 32.33 -1.16 -3.59% 35.52 23.09 57170 1781988.9
NYSE NWL Newell Rubbermaid, Inc. 52.25 50.83 1.42 2.79% 55.45 33.26 482200 25194950
OTC NSANY Nissan Motor Co. Ltd. 19.14 19.72 -0.58 -2.94% 21.92 16.57 2100000 40194000
NASD OFLX OmegaFlex, Inc. 38.11 37.11 1.00 2.69% 43.20 27.51 10090 384529.9
NYSE PH Parker-Hannifin Corp. 124.54 122.56 1.98 1.62% 128.24 83.32 133770 16659715.8
NYSE RBC Regal-Beloit Corp. 59.55 57.74 1.81 3.13% 68.45 47.77 44750 2664862.5
NYSE ROK Rockwell Automation 116.80 115.45 1.35 1.17% 123.48 87.53 129400 15113920
OTC SIEGY Siemens Aktiengesellschaft  115.63 119.08 -3.45 -2.90% 122.84 86.58 808890 93531950.7
NYSE SPXC SPX Corp.  19.79 19.57 0.22 1.12% 20.55 7.62 41760 826430.4
NYSE TXN Texas Instruments 68.49 69.22 -0.73 -1.05% 72.58 46.73 1000000 68490000
NYSE UTX United Technologies Corp. 100.16 102.71 -2.55 -2.48% 109.83 83.39 836930 83826908.8
NYSE WSO Watsco, Inc. 142.89 143.71 -0.82 -0.57% 149.99 106.58 27530 3933761.7

 

The HVACR Business Stock Index slid 16.31 points, or 1.31 percent, and closed at 1224.25. However, advancing issues topped declining issues by a 17-to-14 count.

Honeywell fell 6.28 points, or 5.45 percent and closed at 109.00. Research firm Oppenheimer Holdings cut its fourth quarter earnings per share to $1.76, from an earlier estimate of $1.77. Their rating on the stock is “outperform” with a price target of $122. CreditSuisse Group re-stated its rating of “hold” and a price target of $113.35. A “buy” rating was reiterated by Jefferies Group with a price objective of $130. Honeywell was the top dollar loser.

A.O. Smith rose 2.29 points, or 4.91 percent. The twelve brokerages covering the stock have a consensus rating of “buy” on AOS with a price target of $53.79. KeyCorp reiterated its “buy” rating with a price target of $107. The company announced a 2-for-1 stock split effective Oct. 6. AOS ended at 48.93, and was the top dollar gainer.

LSB Industries slipped 3.01 points, or 35.37 percent. Research firm Feltl & Co. cut its third quarter earnings per shares estimates to reflect a loss of $0.81 per share, down from an earlier loss of $0.60 per share. The company cut its 2016 sales volume $25 million to $26.5 million due to reduced production and increased repair costs, but said it was able to meet client demand through inventory. LXU ended at 5.50 and was the top percentage loser.

 


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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