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10 S&P 500 Stocks Dragging Down the Market

It's only a matter of time before the S&P succumbs to broad-based selling

By Anthony Mirhaydari, InvestorPlace Market Strategist

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Source: Rafael Matsunaga via Flickr

The S&P 500 Index continues to dance precipitously above its 200-day moving average threatening a breakdown that could unleash further waves of selling pressure.

The level held the index up during the panic back in February. And for now, it’s holding the index higher amid the ongoing hit to big-cap tech stocks.

But with a number of major index components already trading beneath this key level, it’s merely a matter a time before the S&P 500 succumbs. At least, without a major and persistent rebound that looks unlikely without clarity on possible data privacy regulations.

Here are 10 stocks that are being a drag, ranked by market capitalization:

10 Stocks Dragging on the S&P 500: Facebook (FB)

Facebook, Inc. (NASDAQ:FB) shares remain the epicenter of the big-tech selloff in the wake of the Cambridge Analytica data scandal.

After a three-day hiding period by its CEO Mark Zuckerberg and a #deletefacebook backlash, the company is in full-on damage control mode holding a call with the media pleading that it is committed to being a platform for civic discourse and is willing to sacrifice profitability to improve the network.

It is shutting down Partner Categories, which provides audience targeting options by leveraging third-party data providers. But that will likely hit profitability.

The company will next report results on May 2 after the close. Analysts are looking for earnings of $1.38 per share on revenues of $11.4 billion. When it last reported on January 31, earnings of $2.21 per share beat estimates by 24 cents on a 47.3% rise in revenues.

10 Stocks Dragging on the S&P 500: Johnson & Johnson (JNJ)

 

Johnson & Johnson (NYSE:JNJ) shares just suffered a “death cross” with its 50-day moving average passing below its 200-day average — something that hasn’t happened since late 2016.

Shares are down roughly 13% from their January high amid ongoing weakness in healthcare/biotech stocks. Not even positive coverage in Barron’s in February could reinvigorate bullish sentiments.

The company will next report on April 17 before the bell. Analysts are looking for earnings of $2.00 per share on revenues of $19.4 billion. When the company last reported on January 23, earnings of $1.74 beat estimates by two cents on an 11.5% rise in revenues.

10 Stocks Dragging on the S&P 500: Exxon Mobil (XOM)

Exxon Mobil Corporation (NYSE:XOM) shares also just suffered a death cross as shares continue to languish near or below their 20-day moving average.

Down nearly 15% from their recent high, the stock hasn’t benefited from a recent rebound in crude oil prices back to their late January highs — revealing a lack of confidence the energy rally will last. HSBC analysts recently upgraded the stock.

The company will next report results on April 27 before the bell. Analysts are looking for earnings of $1.11 per share on revenues of $67 billion. When the company last reported on February 2, earnings of 88 cents per share missed estimates by 15 cents on a 9% rise in revenues.

10 Stocks Dragging on the S&P 500: Wells Fargo (WFC)

Wells Fargo & Co. (NYSE:WFC) shares are down more than 20% amid a regulatory pushback and worries about the health of consumer credit amid a rise in credit card chargeoffs.

The Federal Reserve also recently cracked the whip, warning that revenue growth will be capped until oversight and management deficiencies are addressed. A recent Wall Street Journal article revealed that a federal investigation into its sales practices involves its wealth management unit as well.

The company will next report results on April 13 before the bell. Analysts are looking for earnings of $1.08 per share on revenues of $21.8 billion. When it last reported on Jan. 12, earnings of $1.16 beat estimates by 13 cents on a 2.2% rise in revenues.

10 Stocks Dragging on the S&P 500: AT&T (T)

AT&T Inc. (NYSE:T) shares remain in the doldrums, trading below their 20-day, 50-day, and 200-day moving averages at levels that were first reached back in early 2016.

Why the lack of progress? How about headwinds from a saturated smartphone market, cord-cutting consumers, intense price competition, and rampant M&A activity at a time of high debt levels.

The company will next report results on April 25 after the close. Analysts are looking for earnings of 88 cents per share on revenues of $39.4 billion. When the company last reported on Jan. 31, earnings of 78 cents per share beat estimates by 13 cents on a 0.4% decline in revenues.

10 Stocks Dragging on the S&P 500: Chevron (CVX)

Like XOM, shares of Chevron Corporation (NYSE:CVX) haven’t participated in the rebound in crude oil prices as it threatens to fall definitively below its 200-day moving average amid a rapidly falling 50-day average.

Shares are already down roughly 14%, with a breakdown here threatening a return to the summer 2017 lows despite a recent upgrade from analysts at Bank of America Merrill Lynch.

The company last reported on April 27 before the bell. Analysts are looking for earnings of $1.48 per share on revenues of $41.1 billion. When it last reported on Feb. 2, earnings of $1.64 per share beat estimates by 40 cents on a 19.4% rise in revenues.

10 Stocks Dragging on the S&P 500: Procter & Gamble (PG)

Consumer staples have been a disaster zone all year, typified by the 17% plunge in Procter & Gamble (NYSE:PG) into the low set earlier this week.

A slight rebound attempt is underway, but prices remain well below both the 50-day and 200-day moving averages. Relative valuations for the sector is at a 25-year low according to Stifel analysts.

The company will next report results on April 20 before the bell. Analysts are looking for earnings of $1.00 per share on revenues of $16.2 billion.

When the company last reported on Jan. 23, earnings of $1.19 per share beat estimates by five cents on a 3.2% rise in revenues.

10 Stocks Dragging on the S&P 500: Verizon (VZ)

Verizon Communications Inc. (NYSE:VZ) is enduring another failed breakout attempt above its 200-day moving average, suffering from roughly a 13% decline from its late January high.

Most of the same negative factors weighing on T are weighing on Verizon as well, which explains why the stock hasn’t gone anywhere since early 2016.

The company will next report results on April 24 before the bell. Analysts are looking for earnings of $1.11 per share on revenues of $31.2 billion. When the company last reported on Jan. 23, earnings of 86 cents per share missed estimates by two cents on a 2.2% rise in revenues.

10 Stocks Dragging on the S&P 500: Oracle (ORCL)

Oracle Corporation (NYSE:ORCL) shares plunged after quarterly numbers were reported earlier this month, dropping shares back below their 200-day moving average for a loss of 14% from its recent high.

Better-than-expected earnings were overshadowed by a tepid growth rate in its cloud computing business and a realization that a lower tax rate drove the profitability surprise.

The company will next report on June 20 after the close. Analysts are looking for earnings of 94 cents per share on revenues of $11.2 billion. When the company last reported on March 19, earnings of 83 cents per share beat estimates by 11 cents on a 5.4% rise in revenues.

10 Stocks Dragging on the S&P 500: Citigroup (C)

Citigroup Inc (NYSE:C) shares are down 15% from their recent high, falling through their 200-day moving average, as bank stocks have been hit by the recent pullback in long-term bond yields.

That’s weighing on net interest margin hopes. The result is a break in the 50-week moving average for the first time since the middle of 2016, suggesting further downside risk.

The company will next report results on April 13 before the bell. Analysts are looking for earnings of $1.61 per share on revenues of $18.7 billion. When the company last reported on Jan. 16, earnings of $1.28 beat estimates by nine cents on a 1.4% rise in revenues.

Anthony Mirhaydari is the 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.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/10-sp-500-stocks-dragging-down-the-market/.

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