U.S. large-cap stocks remain tightly rangebound, with the Dow Jones Industrial Average in the binds of a ultra-tight two-month consolidation pattern as it battles overhead resistance from its early March highs.
While corporate earnings growth has been solid, weak “hard” economic data, the specter of another Federal Reserve rate hike in June, and ongoing policy uncertainty out of Washington has sent many component stocks moving lower; in stark contrast to the near-vertical moves in the tech-heavy Nasdaq Composite Index.
Here are three Dow titans suffering right now:
Blue-Chip Stocks Breaking Down: Disney (DIS)
Walt Disney Co (NYSE:DIS) shares are getting hammered lower on Wednesday, breaking down and out of its post October uptrend and moving below its 50-day moving average in dramatic fashion. DIS investors aren’t used to this type of volatility, with the selloff on track for the worst one-day decline since last June. Never forget: Any stock can go down. Hard.
Media stocks in general are getting hit on a combination of factors including an announcement of a live TV service from Hulu, Charter Communications, Inc. (NASDAQ:CHTR) reported disappointing results, and Disney’s ESPN network laid off 100 employees in late April in an effort to cut costs amid ongoing subscriber losses.
The company will next report results on May 9 after the market closes. Analysts are looking for earnings of $1.41 per share on revenues of $13.4 billion. The decline has boosted the May $114 DIS puts recommended to Edge Pro subscribers to a 78% gain since recommended on Tuesday.
Blue-Chip Stocks Breaking Down: Nike (NKE)
Nike Inc (NYSE:NKE) shares are down roughly 10% from their recent high amid a general slowdown in consumer spending (despite ebullient measures of survey-based sentiment) and increased pressure from competitors like Under Armour Inc (NYSE:UAA).
UA reported better-than-expected results in late April, including a 6.7% year-over-year sales increase. In late March, NKE shares took a hit after reporting a 1% decline in future orders on a constant currency basis.
The company will next report results on June 20 after the close. Analysts are looking for earnings of 50 cents per share on revenues of $8.6 billion.
Blue-Chip Stocks Breaking Down: Procter & Gamble (PG)
Procter & Gamble Co (NYSE:PG) stock has dropped back to its 200-day moving average for the first time since January amid ongoing price deflation in the grocery space. Not only that, but traditional “name brand” companies like PG are feeling the heat from the increasing consumer preference for local, boutique providers.
The company will next report results on July 26 before the bell. Analysts are looking for earnings of 78 cents per share on revenues of $16 billion. On April 26, PG issued disappointing forward revenue guidance.
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.
