U.S. equites are drifting lower again on Monday as investors react to more negative trade-related headlines.
U.S. tariffs against China (and Chinese tariffs against the U.S.) are set to kick in this week. U.S. tariffs against steel and aluminum imports are already in effect. And President Donald Trump is threatening to enact tariffs on imported vehicles, which has caught the ire of the European Union and a threat of a counter tariff on $300 billion worth of U.S. exports.
It’s a mess. And the situation doesn’t look like it’s going to get better anytime soon.
As a result, trade-related stocks look vulnerable to downside pressure. Here are seven to avoid:
Stocks at Risk: Wal-Mart (WMT)
Walmart (NYSE:WMT) shares are lurching lower, dropping to the lower end of a trading range going back to March as Congress works on a bill that could impose work requirements for food stamp recipients. This is seen as a negative for discount retailers, ostensibly on a negative impact to the number of Americans getting food stamps.
The retailer is also vulnerable to an increase in the cost of imported goods.
The company will next report results on Aug. 16 before the bell. Analysts are looking for earnings of $1.22 per share on revenues of $124.8 billion. When the company last reported on May 17, earnings of $1.14 beat estimates by two cents on a 4.4% rise in revenues.
Stocks at Risk: Caterpillar (CAT)
Caterpillar (NYSE:CAT) shares have fallen below their 200-day moving average and violated their year-to-date lows as trade tensions have deepened. The company will be directly impacted by a $34 billion tariff China is placing on several categories of goods, including agricultural machinery, starting July 6 as well as another $16 billion tariff on products benefiting from the Made in China 2025 initiative.
The company will next report results on July 24 before the bell. Analysts are looking for earnings of $2.72 per share on revenues of $14.1 billion.
When the company last reported on April 24, earnings of $2.82 beat estimates by 69 cents per share on a 30.9% rise in revenues.
Stocks at Risk: Boeing (BA)
Boeing (NYSE:BA) shares represent one of America’s most critical exports — commercial aircraft — to the Chinese market. China is directly targeting the company with its countervailing tariffs, including a $34 billion tariff on a group of products including aircraft engine parts.
The company will next report results on July 25. Analysts are looking for earnings of $3.46 per share on revenues of $23.83 billion. When the company last reported on April 25, earnings of $3.64 per share beat estimates by $1.06 on a 6.5% rise in revenues.
Stocks at Risk: Deere (DE)
Deere & Company (NYSE:DE) shares have dropped back to test lows last seen in early May, representing a decline of nearly 20% from the highs hit in January-March. No only is Beijing targeting American exports of farm machinery, but is looking to put a tariff on $34 billion worth of American farm produce as well — potentially impacting farmers and their ability to purchase new machinery.
The company will next report results on Aug. 17 before the bell. Analysts are looking for earnings of $2.73 per share on revenues of $9.2 billion.
When the company last reported on May 18, earnings of $3.14 missed estimates by 19 cents on a 34.3% rise in revenues.
Stocks at Risk: General Motors (GM)
General Motors (NYSE:GM) shares are testing below their 50-day moving average after the company warned Trump that ongoing trade tensions risk making the company smaller. The decline totals 13% from the levels last seen in early June. Trump urged citizens to take the company’s threat to shift production with a grain of salt.
The company will next report results on July 26 before the bell. Analysts are looking for earnings of $1.91 per share on revenues of $36.9 billion. When the company last reported on April 26, earning of $1.43 beat estimates by 19 cents on a 12.4% decline in revenues.
Stocks at Risk: Apple (AAPL)
Apple (NASDAQ:AAPL) has enjoyed steady buying demand thanks to ongoing investor obsession with the “FAANGs” but is regardless still negatively exposed to the U.S.-China trade tensions. Trump even reportedly told AAPL CEO Tim Cook that he would ensure iPhones manufactured in China wouldn’t be subjected to an import tax.
The company will next report results on July 31 after the close. Analysts are looking for earnings of $2.18 per share on revenues of $52.4 billion.
When the company last reported on May 1, earnings of $2.73 beat estimates by six cents on a 15.6% rise in revenue.
Stocks at Risk: AMD (AMD)
Advanced Micro Devices (NASDAQ:AMD) shares have dropped more than 10% off of their June highs after a more than 70% fall off of its April low. The company has 26% of its sales out of China, which are at risk amid chatter Trump is looking at limiting Chinese investment in U.S. technology companies — raising the specter of two “walled gardens” with U.S. and Chinese semiconductor companies supplying their respective markets but not each other.
The company will next report results on July 25 after the close. Analysts are looking for earnings of 13 cents per share on revenues of $1.7 billion. When the company last reported on April 25, earnings of 11 cents per share beat estimates by two cents on a 39.8% rise in revenues.
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.
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