U.S. equities are surging higher on Monday as fears recede over the odds of a possible “Brexit” event in Europe — the cute name given to the June 23 referendum by British voters on leaving the European Union.
Last week, poll momentum had shifted to the “Leave” campaign. But the tragic murder of a pro-“Stay” MP by an alleged Brexit supporter seems to have changed the narrative.
The odds of a Brexit vote are now down around 20%. And markets have responded accordingly.
While it’s still possible for voters to deliver a surprise, it appears that stocks and other risky assets are set for a tear higher as another “end of the world” event — like the fiscal cliff, the taper, the Fed’s rate liftoff, the Greek bailout vote — resolves in a positive way.
Keep an eye on these seven large-cap stocks as multi-month consolidation patterns are broken to the upside.
Blue-Chip Stocks to Buy: Boeing Co (BA)
Boeing (BA) shares are on the verge of punching up and out of a four-month consolidation range near its 200-day moving average.
Resistance has been intense near $135, a level that turned shares lower in March and again in April. The stock has traded heavily on concerns about overcapacity in the airline industry.
The company will next report results on July 27. Analysts are looking for earnings of $2.15 per share on revenues of $23.22 billion.
Blue-Chip Stocks to Buy: Chevron Corporation (CVX)
Energy stocks like Chevron (CVX) have been on a tear higher since February thanks to a powerful rebound in crude oil on supply-side disruptions. Shares stalled out over the last three months as oil hit resistance near $50 a barrel.
A breakout by CVX would put the early 2015 highs near $105 to $107 back into play.
The company will next report results on July 29 before the bell. Analysts are looking for earnings of 26 cents per share on revenues of $25.78 billion.
Blue-Chip Stocks to Buy: Walt Disney Co (DIS)
Disney (DIS) shares have been in the dumps after worries over cord cutting slammed the stock late last year. Since then, the stock has been mired in a multi-month consolidation range near $100.
On Monday, the bulls are making an attempt on the 50-day moving average, setting up a possible retest of its 200-day average that proved too tough a challenge back in April and May.
The company will next report results on August 2 after the bell. Analysts are looking for earnings of $1.61 per share on revenues of $14.2 billion.
Blue-Chip Stocks to Buy: General Electric Company (GE)
General Electric (GE) shares have climbed back over their 50-day moving average and approaching their late March highs. This could mark the end of a long sideways trading range going back to November.
Earlier this month, analysts at Cowen initiated coverage highlighting the company’s efforts to refocus on its industrial business segments, moving away from other areas like media and finance.
The company will next report results on July 22 before the bell. Analysts are looking for earnings of 44 cents per share on revenues of $30.7 billion.
Blue-Chip Stocks to Buy: McDonald’s Corporation (MCD)
McDonald’s Corp. (MCD), the purveyor of Happy Meals and Big Macs, has given a reason for shareholders to smile again as shares appear to be popping up and out of a tight two-month channel.
Watch for a run at the 50-day average to open up a retest of the May high near $130. After three years in the doldrums, MCD surged nearly 40% from last summer to its high last month on renewed confidence in management initiatives including new menu items and efforts to remove preservatives.
The company will next report results on July 26 before the bell. Analysts are looking for earnings of $1.39 per share on revenues of $6.3 billion.
Blue-Chip Stocks to Buy: United Technologies Corporation (UTX)
United Technologies (UTX) shares look ready to burst up and over two-month uptrend resistance to challenge its April high near $106.
Shares are trading at levels first reached back in 2013 but have climbed some 25% off of their January-February lows.
The company will next report results on July 27 before the bell. Analysts are looking for earnings of $1.69 per share on revenues of $14.7 billion.
Blue-Chip Stocks to Buy: International Business Machines Corp. (IBM)
IBM (IBM) is breakout out of its four-month consolidation range and pushing to highs not seen since last summer. A lack of top line growth has kept shares moving lower since 2013.
But with bargain hunters coming in, the fact the stock is trading 22% below its all-time high is more important at this point.
The company will report results on July 18 after the close. Analysts are looking for earnings of $2.88 per share on revenues of $20.1 billion.