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Markets Robust But Fade at End Due to Interest Rate Worries

Originally published: 10.01.14 by Margot Crabtree


Despite a flare-up of Ukraine tensions at the start of our session, Wall Street was mostly positive, only weakening near the end. As the trading session ended September 15, 2014, investors waited for a meeting of the federal bankers and the potential move toward raising interest rates.

The Conference Board's index of leading indicators, a gauge of future economic health, rose 0.9 percent in July, the strongest gain since March and the sixth straight increase. The Commerce Department reported home construction rose 15.7 percent in July, the best pace in eight months. 

Applications to build new homes were also strong. The National Association of Realtors said pending home sales increased by 3.3 percent in July, the strongest pace since August 2013; economists polled by Reuters expected a 0.5 percent improvement. 

Construction spending gained 1.8 percent in July, according to the Commerce Department, improving by the biggest amount in over two years, with all categories showing gains. It was the largest one-month improvement since May 2012, and it followed a June decline of 0.9 percent.

As markets moved into the Labor Day holiday, S&P 500 Index closed over 2,000 for the first time.

The Conference Board said consumer confidence improved more than expected in August


to a level not seen since October 2007. Despite a continuation of largely positive economic news, investors began to pull back as our session came to a close. 

The University of Michigan sentiment index grew to 82.5 in August from 81.8 in July, with optimism about jobs and incomes. Despite a continuation of largely positive economic news, investors began to pull back as our session came to a close. 

"As the economic data continues to move along this positive trajectory, interest rates are going to rise," said Quincy Krosby, market strategist at Prudential Financial. "The market is going to have to accept that."

Exchange
Symbol
Company Name
Price
7/15/14
Price
6/15/14
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 18.12 18.54 -0.42 -2.27% 23.09 15.43 55010 996781.2
NYSE ABB ABB Ltd. 22.80 22.62 0.18 0.80% 27.25 21.31 2290000 52212000
NYSE ARG Airgas, Inc. 110.01 108.42 1.59 1.47% 113.16 99.32 74530 8199045.3
NYSE AOS AO Smith Corp. 48.98 48.20 0.78 1.62% 55.18 41.31 90030 4409669.4
NYSE FIX Comfort Systems USA, Inc. 14.76 14.65 0.11 0.75% 20.95 13.28 37710 556599.6
NYSE DOV Dover Corp. 85.04 87.38 -2.34 -2.68% 91.84 67.78 166550 14163412
NASD ELON Echelon Corp. 2.58 2.05 0.53 25.85% 4.18 1.77 43540 112333.2
NYSE DD E. I. DuPont de Nemours & Co. 65.30 65.25 0.05 0.08% 69.75 56.09 915240 59765172
NYSE EME EMCOR Group, Inc. 43.81 41.58 2.23 5.36% 48.00 36.26 67030 2936584.3
NYSE EMR Emerson Electric Co. 64.30 62.97 1.33 2.11% 70.66 60.14 697920 44876256
NYSE F Ford Motor Co. 16.47 17.31 -0.84 -4.85% 18.12 14.40 3930000 64727100
NYSE GM General Motors Co. 33.63 33.84 -0.21 -0.62% 41.85 31.70 1600000 53808000
NYSE HON Honeywell International, Inc. 94.65 94.23 0.42 0.45% 98.09 78.88 782540 74067411
NASD HDSN Hudson Technologies, Inc. 3.13 2.79 0.34 12.19% 4.00 1.75 32030 100253.9
NYSE IR Ingersoll-Rand Plc 59.57 60.55 -0.98 -1.62% 64.77 47.06 267510 15935570.7
NYSE JCI Johnson Controls, Inc. 46.02 47.33 -1.31 -2.77% 52.50 39.42 666080 30653001.6
NYSE LII Lennox International Inc. 80.06 84.05 -3.99 -4.75% 94.69 67.56 48570 3888514.2
NYSE LXU LSB Industries, Inc. 37.52 38.87 -1.35 -3.47% 42.41 29.39 22600 847952
NYSE MTW Manitowoc Co., Inc. 27.02 27.54 -0.52 -1.89% 33.50 18.12 135300 3655806
NYSE NWL Newell Rubbermaid, Inc. 34.43 33.28 1.15 3.46% 33.71 24.32 273800 9426934
NYSE MLI Mueller Industries, Inc. 29.51 28.84 0.67 2.32% 32.13 26.50 56710 1673512.1
OTC NSANY Nissan Motor Co. Ltd. 19.59 19.39 0.20 1.03% 21.33 16.45 2100000 41139000
NASD OFLX OmegaFlex, Inc. 19.52 17.65 1.87 10.59% 24.99 15.93 10090 196956.8
NYSE PH Parker-Hannifin Corp. 117.10 112.78 4.32 3.83% 130.44 99.75 148970 17444387
NYSE RBC Regal-Beloit Corp. 69.59 70.50 -0.91 -1.29% 80.41 62.93 45180 3144076.2
NYSE ROK Rockwell Automation 115.49 114.29 1.20 1.05% 128.57 96.20 137870 15922606.3
OTC SIEGY Siemens Aktiengesellschaft  125.86 122.02 3.84 3.15% 139.28 105.68 841860 105956499.6
NYSE SPW SPX Corp.  101.62 101.42 0.20 0.20% 111.47 73.15 42560 4324947.2
NYSE TXN Texas Instruments 47.59 47.56 0.03 0.06% 49.77 38.00 1070000 50921300
NYSE UTX United Technologies Corp. 108.32 105.63 2.69 2.55% 120.66 99.50 914810 99092219.2
NYSE WSO Watsco, Inc. 89.61 92.36 -2.75 -2.98% 105.39 86.98 32300 2894403

 

The HVACR Business Stock Index rose 6.16 points, or 0.49 percent, and closed at 1272.51. Advancing issues handily beat declining issues at a 20-to-11 count.

Parker-Hannifin rose 4.32 points, or 3.83 percent. The PH Board of Directors declared a regular quarterly dividend of $0.48 per share. The dividend is payable Sept. 12, 2014 to stakeholders of record as of Aug. 28. PH closed at 117.10, and was the top dollar gainer.

Shares of Echelon rose 0.53 points, or 25.85 percent. ELON announced that it has acquired Lumewave, a Sacramento-based company specializing in wireless and wired outdoor lighting, especially in cities, universities and medical facilities. Terms of the acquisition were not disclosed. Echelon closed at 2.58, and was the top percentage gainer.

Despite a boost in its price target, Lennox International dropped 3.99 points, or 4.75 percent. Investment firm JPMorgan Chase & Co. upped its price target to $108, from $97. LII ended at 80.06, and was the top dollar loser.

United Technologies was up 2.69 points, or 2.55 percent. The company affirmed its full-year guidance, saying it expects a 9 percent to 10 percent increase over the previous year, ranging between $6.75 per share and $6.85 per share. UTX said it also plans to increase the size of its share repurchase program, to $1.35 billion, from $1.25 billion. United Technologies closed at 108.32.


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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