U.S. equities are drifting lower in trading on Wednesday, hurt by deepening fears that a trade war will be unleashed by President Donald Trump’s desire to put tariffs on steel and aluminum imports as well as go after China on intellectual property and trade deficit concerns.
Deepening the fallout was the resignation of “globalist” economic advisor Gary Cohn; creating the impression that economic nationalists will now rule the Oval Office.
Amid the resulting carnage, energy stocks are getting hit particularly hard with the Energy Select SPDR (NYSEARCA:XLE) looking ready to drop out of feeble looking trading range. The XLE never really rebounded after February’s market wipeout, and has now fallen back below its 200-day moving average. Crude oil is rolling over as well after it was reported that U.S. energy production hit a record high.
This is raising concerns that OPEC — which is pleading with shale producers to cap output — will be forced to push prices down again as they did in 2014 to squeeze U.S. companies. As a result, stocks in the sector are rolling over. Here are five at risk:
Energy Stocks: Exxon Mobil (XOM)
Exxon Mobil Corporation (NYSE:XOM) shares are breaking down out of a two-month consolation range, falling below its August lows to test levels not seen since early 2016.
That’s a loss of more than 16% from the late January high as an aggressive growth plan outlined by management on Wednesday was greeted with disappointment by investors.
The company will next report result son April 27 before the bell. Analysts are looking for earnings of $1.15 per share on revenues of $78.2 billion.
When the company last reported on Feb. 2, earnings of 88 cents missed estimates by 15 cents on a 9% rise in revenues.
Energy Stocks: Halliburton (HAL)
Halliburton Company (NYSE:HAL) shares have lost more than 14% from their January highs to threaten a breakdown below its 200-day moving average.
Watch for a decline to the late November low, which would be worth another 10% drop from here. The company suffered a downgrade from analysts at Bank of America Merrill Lynch on Feb. 26.
The company will next report resulted on April 23 before the bell. Analysts are looking for earnings of 44 cents per share on revenues of $5.8 billion.
When the company last reported on January 22, earnings of 53 cents per share beat estimates by seven cents on a 47.7% rise in revenues.
Energy Stocks: Apache (APA)
Apache Corporation (NYSE:APA) shares, which have already dropped more than 30% from their late January high, are threatening a drop to fresh lows not seen since early 2016.
The stock was hit with a initiation at a “sell” rating by an analyst at UBS on Wednesday, adding to the downside pressure.
The company will next report results on May 3 before the bell. Analysts are looking for earnings of 37 cents per share on revenues of $1.6 billion.
When the company last reported on Feb. 22, earnings of 33 cents per share beat estimates by eight cents.
Energy Stocks: Occidental Petroleum (OXY)
Occidental Petroleum Corporation (NYSE:OXY) shares have dropped below their 200-day moving average, capping an undisturbed decline of more than 16% from its late January high to return to levels not seen since late October.
That returns the stock to the trading range that has dominated its movements since late 2014.
The company will next report results on May 3 before the bell. Analysts are looking for earnings of 62 cents per share on revenues of $3.6 billion.
When the company last reported on Feb. 13, earnings of 41 cents matched estimates on $3.6 billion in revenues.
Energy Stocks: Schlumberger (SLB)
Schlumberger Limited. (NYSE:SLB) shares have been lingering limply under their 200-day moving average and look set for a drop down to the lows last seen in November.
Already down nearly 18% from their January high, shares have been dogged by fears that shale production rebound isn’t sustainable. Watch for a 10% downside move from here.
The company will next report results on April 20 before the bell. Analysts are looking for earnings of 40 cents per share on revenues of $7.9 billion.
When the company last reported on Jan. 19, earnings of 48 cents per share beat estimates by three cents on a 15.1% 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.
