U.S. equities are in a bad place on Thursday, gapping lower at the open and continuing to slide into the afternoon. Investors have a number of reasons to be spooked, including the announcement of $50 billion in trade tariffs by President Trump, the lingering hawkishness of the Federal Reserve’s policy announcement on Wednesday and the ongoing fallout from Facebook Inc’s (NASDAQ:FB) data privacy missteps as well as the impact it’s having on the entire tech sector.
The result is some serious technical weakness on the charts, with the Dow Jones Industrial Average falling down out of a wedge pattern setting up a possible test of the early February panic lows. The tech-heavy Nasdaq Composite formed a dangerous looking double-top pattern after a failed and abandoned “island” breakout pattern.
Further declines seem likely here. Here are five stocks to sell right now in preparation:
Stocks to Sell: AKSteel (AKS)
Steel and aluminum stocks got a lift back in February on hopes related to Trump’s steel and aluminum tariffs. But the gains have already faded as broader concerns about global growth and the impact of a possible outright trade war with China have dampened spirits. Shares of AK Steel Holding Corporation (NYSE:AKS) are already down a third from their January high and they look set for a test of the November low, which would be worth another 10% downside from here.
The company will next report results on April 30, before the bell. Analysts are looking for earnings of 7-cents-per-share on revenues of $1.5 billion. When the company last reported on Jan. 30, a loss of 6-cents-per-share beat estimates by 7 cents on a 5.4% rise in revenues.
Stocks to Sell: Facebook (FB)
Where to start with FB, which has been battered by reports of political weaponization of its users’ data and a limp-wristed apology tour by CEO Mark Zuckerberg after three days of hiding. The fallout has resulted in “#deletefacebook” trending on Twitter and it has greatly increased the risk that data-driven, big-tech firms like FB will face strict regulations on the sale and use of user information in the future.
The company will next report results on May 2, after the close. Analysts are looking for earnings of $1.39-per-share on revenues of $11.4 billion. When the company last reported on Jan. 31, earnings of $2.21-per-share beat estimates by 24 cents on a 47.3% rise in revenues.
Stocks to Sell: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) shares are falling further below their 50-day moving average, a major level of technical support it has been fighting to stay above since December. The problem? Demand continues to be tepid for the $1,000 iPhone X and this year’s models look to be incremental, at best.
The company will next report reports on May 1, after the bell. Analysts are looking for earnings of $2.71-per-share on revenues of $61.3 billion. When the company last reported on Feb. 1, earnings of $3.89 beat estimates by 4 cents on a 12.7% rise in revenues.
Stocks to Sell: Citigroup (C)
Citigroup Inc (NYSE:C) shares are down more than 11% and are testing below their 200-day moving average for the first time since the summer of 2016 in what could be the start of some serious selling pressure for the financial sector as safe haven inflows into Treasury bonds are pushing down long-term yields, reducing the net interest margin dynamics that have been a tailwind for bank stocks for months.
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 Feb. 1, earnings of $3.89 beat estimates by 4 cents on a 12.7% rise in revenues.
Stocks to Sell: General Motors (GM)
General Motors Company (NYSE:GM) shares are down below their 200-day moving average and are threatening to drop below its early February lows. Already down more than 20% from their October high, the company is at the center of possible trade retaliation from Asia and Europe in response to President Trump’s recent trade actions including tariffs on steel and aluminum.
The company will next report results on May 8, before the bell. Analysts are looking for earnings of $1.30-per-share on revenues of $33.1 billion. When the company last reported on Feb. 6, earnings of $1.65-per-share beat estimates by 22 cents on a 7.7% drop 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.
