SBUX, DAL And MCD, 3 Services Stocks Pushing The Sector Lower

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 59 points (-0.4%) at 16,657 as of Wednesday, May 14, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,380 issues advancing vs. 1,556 declining with 176 unchanged.

The Services sector currently sits down 0.7% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include URS ( URS), down 7.4%, LATAM Airlines Group ( LFL), down 4.0%, Las Vegas Sands ( LVS), down 2.8%, Kohl's ( KSS), down 2.7% and Melco Crown Entertainment ( MPEL), down 2.5%. Top gainers within the sector include Myriad Genetics ( MYGN), up 4.4%, YY ( YY), up 4.3%, Vipshop Holdings ( VIPS), up 4.0%, Hertz Global Holdings ( HTZ), up 2.5% and SBA Communications ( SBAC), up 1.2%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Starbucks ( SBUX) is one of the companies pushing the Services sector lower today. As of noon trading, Starbucks is down $0.70 (-1.0%) to $70.46 on light volume. Thus far, 1.5 million shares of Starbucks exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $70.36-$71.20 after having opened the day at $71.18 as compared to the previous trading day's close of $71.16.

Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single serve products, and juices and bottled water. Starbucks has a market cap of $53.6 billion and is part of the leisure industry. Shares are down 9.2% year-to-date as of the close of trading on Tuesday. Currently there are 17 analysts that rate Starbucks a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Starbucks as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Starbucks Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

2. As of noon trading, Delta Air Lines ( DAL) is down $0.28 (-0.7%) to $38.50 on light volume. Thus far, 4.0 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 12.0 million shares. The stock has ranged in price between $38.19-$38.86 after having opened the day at $38.64 as compared to the previous trading day's close of $38.78.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. Its route network comprises various gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $32.8 billion and is part of the transportation industry. Shares are up 41.2% year-to-date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Delta Air Lines a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Delta Air Lines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, solid stock price performance, compelling growth in net income and revenue growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Delta Air Lines Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

1. As of noon trading, McDonald's ( MCD) is down $0.78 (-0.8%) to $102.75 on light volume. Thus far, 1.6 million shares of McDonald's exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $102.54-$103.78 after having opened the day at $103.69 as compared to the previous trading day's close of $103.53.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company's restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's has a market cap of $101.7 billion and is part of the leisure industry. Shares are up 6.7% year-to-date as of the close of trading on Tuesday. Currently there are 11 analysts that rate McDonald's a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates McDonald's as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full McDonald's Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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