U.S. equities are posting a feeble rebound on Friday, as the bulls are still apparently shell shocked from Thursday’s rout, which took the Dow Jones Industrial Average below the 22,000-level. Tensions between North Korea and the United States remain high, with President Trump warning that the U.S. military is “locked and loaded” and ready to strike if needed.
Adding to the headwinds was a softer-than-expected Consumer Price Index report showing inflation slowing, which suggests the U.S. economy is stalling once more. With stocks locked into the first confirmed downtrend since June — as measured by the parabolic stop-and-reverse indicator — breadth continues to deteriorate.
Here are three Dow Jones stocks that look ready for fresh breakdown here:
Dow Jones Stocks That Are In Trouble: American Express (AXP)
American Express Company (NYSE:AXP) shares look ready to break down out of a three-month consolidation range and they are threatening critical support near its 50-day moving average. A breakdown here would set up a run all the way down to AXP’s 200-day moving average, which would be worth an 8%+ decline from here.
American Express will next report results on Oct. 18 after the market closes. Analysts are looking for earnings of $1.47 share on revenues of $8.3 billion. When AXP last reported on July 19, earnings of $1.47 per share beat estimates by 3 cents on a 0.9% rise in revenues. In a post-earnings note, analysts at RBC Capital warned of fundamental headwinds, including high competition and discount revenue pressure.
Dow Jones Stocks That Are In Trouble : Goldman Sachs (GS)
Goldman Sachs Group Inc (NYSE:GS) shares look ready to fall out of a three-month uptrend channel, already breaking below critical support at its 50-day and 200-day moving averages. Watch for a move back to its late May low near $210, which would be worth a 5%+ decline from here. If that level doesn’t hold the entire post-election uptrend in GS could be at risk, potentially featuring a pullback to the $160 area.
Goldman Sachs will next report results on Oct. 17 before the bell. Analysts are looking for earnings of $4.34 per share on revenues of $7.6 billion. When GS last reported on July 18, earnings of $3.95 beat estimates by 56 cents despite a 0.6% drop in revenues.
Dow Jones Stocks That Are In Trouble: Exxon Mobil (XOM)
Exxon Mobil Corporation (NYSE:XOM) shares finally appear to be breaking down below an epic year-to-date consolidation range with critical support near the $79-per-share level. A breakdown here sets up a reversal of the entire rebound out of the 2015/2016 low. The downtrend in XOM is motivated by new pressure against crude oil as OPEC compliance in its supply freeze agreement breaks down.
Exxon Mobil will next report results on Oct. 27. Analysts are looking for earnings of 83 cents per share on revenues of $63.6 billion. When XOM last reported on July 28, earnings of 78 cents per share came in 8 cents below estimates despite a 9% jump in revenue.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
