U.S. equities are suffering a wild ride on Thursday, recovering from deep morning losses to trade back into positive territory.
The word of the day is “volatility” as investors contend with a number of catalysts including a more pessimistic Federal Reserve, the odds of a “Brexit” vote in Europe, and mixed economic data.
But the overall theme remains risk off as global bond yields collapse, safe haven inflows dominate and assets like precious metals get the attention.
With measures of market breadth deteriorating as the selling pressure widens, here are three blue-chip titans in the Dow Jones Industrial Average that look vulnerable to some downside movement.
Dow Jones Titans in Trouble: Goldman Sachs (GS)
Goldman Sachs Group Inc (NYSE:GS) shares have been knocked out of their multimonth trading range as bank stocks generally come under pressure on the collapse in long-term bond yields, which is pressuring net interest margins, and thus profitability in the sector.
As a result, while the Dow Jones is up 1.6% for the year-to-date, GS is down nearly 20%.
The company will next report results on July 19 before the bell. Analysts are looking for earnings of $3.22 per share on revenues of $7.7 billion.
Edge Pro subscribers are enjoying a 50%-plus gain in their July $150 GS puts.
Dow Jones Titans in Trouble: American Express (AXP)
American Express Company (NYSE:AXP) shares have been hammered below their 50-day moving average for the first time since October this week as pressure against financial stocks in general builds.
AXP also is affected by evidence of a decline in consumer credit quality, the loss of its exclusive deal with Costco Wholesale Corporation (NASDAQ:COST) and the fact that consumers have largely saved their gas savings windfall over the last two years, not spent it.
The company will next report results on July 28 after the close. Analysts are looking for earnings of $1.70 per share on revenues of $8.5 billion.
Dow Jones Titans in Trouble: Boeing (BA)
Boeing Co (NYSE:BA) shares have stalled since peaking late last year on growing evidence of overcapacity problems in the airline industry — a problem that, should it continue, will eventually dampen new orders. No less than Barron’s covered this angle in a recent article.
Watch for a drop below critical support near $125.
The company will next report results on July 27 before the bell. Analysts are looking for earnings of $2.14 per share on revenues of $23.21 billion.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
