U.S. equities are bouncing back on Friday after posting their eight-consecutive decline on Thursday — a run of selling pressure not seen since Lehman was going down in 2008. Investors continue to brace for a possible upset by Republican Party presidential hopeful Donald Trump over Democratic rival Hillary Clinton, as new revelations about investigations into the Clinton Foundation and Clinton’s private email server tighten the polls.
The Dow Jones Industrial Average has moved below the 18,000 level for the first time since July in a crescendo of selling pressure that’s been building since August. It started with small caps before spreading to yield-sensitive areas like telecom, utilities and REITs.
Now, it’s starting to hit the popular, big-cap tech stocks that are, for many Main Street investors, the bellwethers of the entire market.
These are the stocks that pushed the Nasdaq 100 to a narrow record high a few weeks ago. But now, a combination of Trump electoral fears mixed with a series of earnings disappointments has resulted in nasty turnarounds. Depending on your bent, this is presenting either an awesome buying opportunity or a final warning before further losses set in.
Here are five to keep an eye on.
Big Tech Stocks to Watch: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) shares have traded down nearly 7% from their early October highs, violating six-month uptrend support at the 50-day moving average as investors have fled on tepid demand for the iPhone 7 (no, removing the headphone jack wasn’t “courageous” guys) and disappointing quarterly results.
Evidence continues to build that both the smartphone and tablet markets are getting saturated. And Apple’s reported flirtation with an electric vehicle project seems to have hit the skids. Revenue last quarter fell 9% from last year on iPhone shipments of 45.5 million vs. 48 million last year.
The company will next report results on Jan. 24 after the close. Analysts are looking for earnings of $3.24 per share on revenues of $77.1 billion.
Big Tech Stocks to Watch: Amazon (AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) shares are down 10% from their early October high, falling away from their 50-day moving average to test the $750 level for the first time since September. The smooth seven-month uptrend has been violated, possibly setting up a test of the 200-day moving average not touched since March.
The company disappointed investors on Oct. 27 by reporting weaker-than-expected results (after two quarters of better results) with earnings of 52 cents per share missing estimates of 78 cents.
This despite a 29% year-over-year jump in revenues as expenses continue to surge. The company will next report results on Jan. 26 after the bell. Analysts are looking for earnings of $1.53 per share on revenues of $44.7 billion.
Big Tech Stocks to Watch: Facebook (FB)
Facebook Inc (NASDAQ:FB) shares are down more than 9% from their late September high to test support near its 200-day moving average — a level that has been repeatedly tested since the stock’s epic uptrend began in 2013.
Despite solid user growth, shares dropped after the company issued a disappointing revenue growth outlook that masked a quarterly earnings beat. Specifically, management warned of slowing ad revenue growth and increasing investment spending.
The company will next report results on Jan. 25. Analysts are looking for earnings of $1.29 per share on revenues of $8.48 billion.
Big Tech Stocks to Watch: Alphabet (GOOGL)
Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG) shares are down 6.3% from their late October high, filling their late-July gapped move higher. By falling back below the $800-a-share level, the stock has returned to levels first reached late last year.
Shares are drifting lower despite reporting a top- and bottom-line beat on Oct. 27, with earnings of $9.06 per share (46 cents ahead of estimates) on a 20% jump in revenues.
The company will next report results on Jan. 26 after the close. Analysts are looking for earnings of $9.60 per share on revenues of $25.1 billion.
Big Tech Stocks to Watch: Baidu (BIDU)
Chinese internet icon Baidu Inc (ADR) (NASDAQ:BIDU) is down 15% from its September high after double topping near $200, setting up another test of support near $160 as the 200-day moving average is lost.
Overall, shares are down by a third from their late 2014 highs. While the company reported better-than-expected earnings on Oct. 27, investors were disappointed by downside revenue guidance.
The company will next report results on Feb. 23 after the close. Analysts are looking for earnings of 81 cents on revenues of $2.7 billion.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
