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Stocks End Mixed on Earnings and Tariff Talk

Originally published: 08.16.18 by Margot Crabtree


Earnings and tariffs fueled a bumpy ride that closed mixed as our trading session ended August 15, 2018. The S&P 500 hit a 5-month high as our session began, but soon tech stocks and the unknown of tariffs eroded investor confidence.

When Google parent Alphabet posted strong earnings, that gave the S&P another pop, but then Twitter revealed a decline in monthly users and Facebook forecast a slower pace of revenue growth, which sent stock in both companies tumbling.

The Commerce Department reported that sales of new homes fell sharply in June, down 5.3 percent, as homebuilders face rising costs of lumber, and home buyers face rising mortgage rates. In a separate report, the department said that spending on construction fell 1.1 percent in June, the largest drop in over a year.

The Conference Board said that its consumer confidence index edged slightly higher in July, to 127.4, from the June reading of 127.1. The Federal Reserve said that industrial production, including output at utilities, factories and mines, increased 0.6 percent in June, from a 0.5 percent drop in May.

The Institute for Supply Management reported that its manufacturing index fell to 58.1 in July from 60.2 in June. The Commerce Department said


that durable goods rose 1 percent in June after falling in the previous two months.

Our session closed out with economic turmoil in Turkey, which had U.S. and European stocks skidding.

“It was a classic risk-off move,” said Quincy Krosby, chief market strategist at Prudential Financial. “You worry about the collateral damage. You worry about the effects on Europe. You have banks losing because the 10-year U.S. Treasury came down.”

Exchange
Symbol
Company Name
Price
8/15/18
Price
7/13/18
Net
Change
PercentChange
52-Week
High
52-Week
Low
Shares
Outstanding
Market
Capitalization
NASD AAON AAON, Inc. 39.95 35.75 4.20 11.75% 40.25 29.05 52260 2087787
NYSE ABB ABB Ltd. 22.12 21.63 0.49 2.27% 28.67 21.22 2130000 47115600
NYSE AOS AO Smith Corp. 57.98 60.23 -2.25 -3.74% 68.39 53.42 144540 8380429.2
NYSE FIX Comfort Systems USA, Inc. 55.40 48.30 7.10 14.70% 59.05 32.45 37040 2052016
NYSE DOV Dover Corp. 82.35 74.91 7.44 9.93% 88.09 67.04 147700 12163095
NASD ELON Echelon Corp. 8.40 8.29 0.11 1.33% 8.49 4.07 4540 38136
NYSE DWDP DowDuPont 66.46 66.36 0.10 0.15% 77.08 61.27 2310000 153522600
NYSE EME EMCOR Group, Inc. 76.55 77.35 -0.80 -1.03% 85.08 62.15 58180 4453679
NYSE EMR Emerson Electric Co. 73.56 70.58 2.98 4.22% 75.25 57.47 630090 46349420.4
NYSE FCAU Fiat Chrysler 15.61 19.43 -3.82 -19.66% 24.95 12.47 1540000 24039400
NYSE F Ford Motor Co. 9.45 10.98 -1.53 -13.93% 13.48 9.35 3910000 36949500
NYSE GM General Motors Co. 35.94 39.36 -3.42 -8.69% 46.76 34.50 1410000 50675400
NYSE HON Honeywell International, Inc. 153.18 147.50 5.68 3.85% 165.13 134.50 742610 113752999.8
NASD HDSN Hudson Technologies, Inc. 1.83 2.16 -0.33 -15.28% 9.80 1.58 42400 77592
NYSE IR Ingersoll-Rand Plc 97.90 91.05 6.85 7.52% 99.00 79.63 245310 24015849
NYSE JCI Johnson Controls, Inc. 37.55 35.12 2.43 6.92% 42.60 32.89 924920 34730746
NYSE LII Lennox International Inc. 222.08 215.09 6.99 3.25% 224.24 160.18 40260 8940940.8
NYSE LXU LSB Industries, Inc. 6.73 6.97 -0.24 -3.44% 10.05 4.75 28610 192545.3
NYSE MTW Manitowoc Co., Inc. 21.82 27.39 -5.57 -20.34% 44.03 21.18 35540 775482.8
NYSE MLI Mueller Industries, Inc. 31.01 29.62 1.39 4.69% 37.57 25.26 57590 1785865.9
NYSE NWL Newell Brands, Inc. 20.89 27.80 -6.91 -24.86% 50.90 20.21 485700 10146273
OTC NSANY Nissan Motor Co. Ltd. 18.57 18.19 0.38 2.09% 22.14 18.11 3910000 72608700
NASD OFLX OmegaFlex, Inc. 86.55 82.96 3.59 4.33% 95.00 53.50 10090 873289.5
NYSE PH Parker-Hannifin Corp. 166.49 161.51 4.98 3.08% 212.80 152.47 132960 22136510.4
NYSE RBC Regal-Beloit Corp. 80.40 82.45 -2.05 -2.49% 86.65 67.84 43450 3493380
NYSE ROK Rockwell Automation 171.69 171.07 0.62 0.36% 210.72 155.81 123170 21147057.3
OTC SIEGY Siemens Aktiengesellschaft  62.31 68.22 -5.91 -8.66% 77.17 61.68 812830 50647437.3
NYSE SPXC SPX Corp.  33.93 36.61 -2.68 -7.32% 39.28 23.41 43050 1460686.5
NYSE TXN Texas Instruments 109.60 115.14 -5.54 -4.81% 120.75 79.60 972200 106553120
NYSE UTX United Technologies Corp. 131.75 129.51 2.24 1.73% 139.24 109.10 800090 105411857.5
NYSE WSO Watsco, Inc. 170.05 184.06 -14.01 -7.61% 192.94 141.61 29050 4939952.5
 
 
Price 8/15/18
Price 7/13/18
Net Change
Percent Change
HVACR Business Stock Index 1,511.08 1,538.98 -27.90 -1.81%
Dow Jones Industrial Average 25,162.41 25,019.41 143.00 0.57%
S&P 500 Index 2,818.37 2,801.31 17.06 0.61%
NASDAQ Composite 7,774.12 7,825.98 -51.86 -0.66%

 

Gainers/Losers
$ Gainer Dover Corp. 7.44
$ Loser Watsco, Inc. -14.01
 
% Gainer Comfort Systems USA, Inc. 14.70%
% Loser Newell Brands, Inc. -24.86%
 
Advancers 17
Decliners 14

The HVACR Business Stock Index slid 27.90 points, or 1.81 percent, and closed at 1511.08. However, advancing issues outpaced declining issues at a 17-to-14 count.

Watsco tumbled 14.01 points, or 7.61 percent, and closed at 170.05 after missing second quarter estimates. WSO earned net income of $90 million, or $2.40 per share, compared to last year’s net income of $2.07 per share. Revenue was $1.33 billion versus $1.28 billion in the year-ago quarter. Analysts polled by Zacks Investment Service expected earnings of $2.47 per share.  Watsco was the top dollar loser.

Dover jumped 7.44 points, or 9.93 percent after beating on revenue and earnings for the second quarter. DOV posted net income of $140 million, or $0.91 per share. Adjusted for one-time items, Dover earned $1.30 per share. Revenue was $1.8 billion. Analysts surveyed by Zacks expected earnings of $1.21 per share and revenue of $1.78 billion. DOV ended at 82.35, and was the top dollar gainer.

Newell Brands fell 6.91 points, or 24.86 per share after exceeding on revenue but falling short on revenue. For the second quarter, NWL earned $131.7 million, or $0.27 per share. Adjusted for one-time items, Newell earned $0.82 per share. Revenue was $2.2 billion.

Analysts polled by Zacks expected earnings of $0.78 per share and revenue of $3.84 billion. The company’s stock also fell after warning that tariff wars could cost the company up to $100 million over a year. Newell closed at 20.89, and was the top percentage loser.

 

 




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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