3 Dow Jones Giants That You Need to Evacuate

Advertisement

Dow Jones - 3 Dow Jones Giants That You Need to Evacuate

Source: Shutterstock

U.S. equities are drifting lower on Friday as some buyer exhaustion sets in after an exciting week. The Nasdaq Composite pushed further above the 6,000 level at the open, setting a new intraday high after a batch of Big Tech earnings overnight. But the results were mixed, with Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) disappointing.

3 Dow Jones Giants That You Need to Evacuate

Source: Shutterstock

Moreover, President Trump’s “big league” tax plan announcement on Wednesday was a dud, another healthcare reform push has apparently died in the Congress, and Friday’s first-quarter U.S. GDP growth report came in at just 0.7% on the weakest consumer spending performance since 2009.

That’s a lot of headwinds for the market to digest, especially since the gapped move higher this week came on very narrow breadth. Sentiment is extended. And the Dow Jones Industrial Average is contending with stiff overhead resistance from its early March high.

Keep an eye on these three Dow components, which are rolling over and look ready for a downside extension:

Dow Jones Stocks: Bank of America (BAC)

Bank of America Corp (NYSE:BAC) shares appear to be tracing out a large head-and-shoulders reversal pattern, going back to December, that targets a decline below its 200-day moving average to the $18-a-share level. Amid the broad market surge this week, shares struggled at resistance from its 50-day moving average near $24 falling back into its five-month trading range.

The company will next report results on July 18 before the bell. Analysts are looking for earnings of 47 cents on revenues of $22.4 billion. Better-than-expected results on April 18 didn’t generate much excitement, suggesting a lot of good news was already priced in.

Earnings of 41 cents per share were six cents ahead of estimates. Worries seemed to focus on declining mortgage loan activity.

Dow Jones Stocks: General Electric (GE)

General Electric Company (NYSE:GE) shares have struggled near their 200-day moving average since January, and have now fallen out of their three-month trading range returning to levels not seen since November.

This despite reporting better-than-expected results — beating the top- and bottom-line expectations — on April 21. Revenues, however, fell 0.7% from last year. The stock was downgraded to neutral from buy by Bank of America Merrill Lynch analysts on April 25.

The company will next report results on July 21 before the bell. Analysts are looking for earnings of 26 cents per share on revenues of $29.3 billion.

Dow Jones Stocks: Procter & Gamble (PG)

 

Procter & Gamble Co (NYSE:PG) shares have dropped down and out of a three-month consolidation range, falling away from its 50-day moving average to close in on its 200-day moving average last touched in January.

The company reported better-than-expected earnings on April 26 of 96 cents per share — two cents ahead of estimates — although revenue dropped 1% from the prior on ongoing organic growth headwinds.

The company will next report results on August 2 before the bell. Analysts are looking for earnings of 79 cents per share on revenues of $16 billion.

Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. A two-week and four-week free trial offer has been extended to Investorplace readers. Redeem by clicking the links above.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/3-dow-jones-giants-that-you-need-to-evacuate/.

©2024 InvestorPlace Media, LLC