U.S. equities are extending to the downside on Monday, with the Dow Jones Industrial Average falling further away from its 20-day moving average to cap a three-day losing streak. Watch for a looming test of the 25,000 level, which has been repeatedly crossed — on the upside and the downside — numerous times since it was first breached back in January.
Investors are being spooked by the worsening emerging markets currency crisis, driven by the weakness in the Turkish lira and ongoing worries about the health of the Chinese economy amid a deepening trade rift with the United States. The iShares Emerging Markets ETF (NYSEARCA:EEM) is down 1.8% in mid-day trading, threatening to fall below the late June low and return to levels not seen in more than a year.
While the big-tech stocks are (of course) holding up well, a growing list of other large-cap issues are succumbing to downside pressure as measures of market breadth weaken. Here are eight large-cap stocks to sell before their meltdowns are complete:
Large-Cap Stocks to Sell: Ford (F)
Ford (NYSE:F) shares are dropping hard, falling below their February/March lows, returning to levels not seen since late 2012. Yep, it’s that bad. Ford continues to struggle in the wake of the departure of former CEO Alan Mulally. The company is caught at the center of the ongoing trade tussle, exposed to higher steel and aluminum prices (in the wake of President Trump’s tariffs on imported metals) as well as China’s retaliatory tariffs against automobiles.
Ford will next report results on Oct. 24, after the close. Analysts are looking for earnings of 33-cents-per-share on revenues of $35.5 billion. When the company last reported on July 25, earnings of 27-cents-per-share missed estimates by 3 cents on a 2.8% decline in revenues.
Large-Cap Stocks to Sell: Caterpillar (CAT)
Caterpillar (NYSE:CAT) shares are breaking down and out of a three-month consolidation range and are now threating a breakdown to levels not seen since last October. The company was downgraded by analysts at Barclays on July 31 on concerns over construction and mining activity as well as some apprehension around its valuation.
The company will next report results on Oct. 29, before the bell. Analysts are looking for earnings of $2.76-per-share on revenues of $13.13 billion. When the company last reported on July 30, earnings of $2.97-per-share beat estimates by 23 cents on a 23.7% rise in revenues.
Large-Cap Stocks to Sell: Goldman Sachs (GS)
Goldman Sachs (NYSE:GS) shares are down another 1% on Monday, falling further below their 50-day moving average and lower Bollinger Band, capping a four-day losing streak. GS shares are already down more than 17% from the highs they hit in March. Strong quarterly results reported back in July haven’t provided a lasting lift to shares despite 40% year-over-year net income growth.
The company will next report results on October 16, before the bell. Analysts are looking for earnings of $5.80-per-share on revenues of $8.5 billion. When the company last reported on July 17, earnings of $5.98-per-share beat estimates by $1.33-per-share on revenues of 19.2%.
Large-Cap Stocks to Sell: General Motors (GM)
General Motors (NYSE:GM) shares are down 20% from their June high, falling back to levels seen in May. Not only is the company facing headwinds similar to Ford, but it’s facing specific headwinds after releasing disappointing full-year guidance. There is chatter that activist investor Carl Icahn has accumulated a stake. And the company asked the government for a tariff exemption on its Buick Envision SUV.
The company will next report results on Oct. 23, before the bell. Analysts are looking for earnings of $1.31-per-share on revenues of $35.3 billion. When the company last reported on July 25, earnings of $1.81 beat estimates by a penny on a 0.5% decline in revenues.
Large-Cap Stocks to Sell: Morgan Stanley (MS)
Morgan Stanley (NYSE:MS) shares are in the midst of a four-day losing streak, continuing the downtrend pattern that started in March. This has resulted in a total loss to shareholders of more than 18%. Financial stocks have generally been under pressure for months as long-term interest rates have stalled amid rising concerns about the health of the economy thanks to the Federal Reserve’s increasingly hawkish policy stance.
The company will next report results on Oct. 17, before the bell. Analysts are looking for earnings of $1.12-per-share on revenues of $9.7 billion. When the company last reported on July 18, earnings of $1.30-per-share beat estimates by 20 cents on a 11.6% rise in revenues.
Large-Cap Stocks to Sell: Exxon Mobil (XOM)
Exxon Mobil (NYSE:XOM) is falling out of a five-month consolidation range to return to lows not seen since the end of May. Shares are already down more than 9% from the highs seen in early February as crude oil prices have drifted lower after setting a high of more than $75-a-barrel in early July. Shares continue to struggle following a big bottom-line miss last month.
The company will next report results on October 26 before the bell. Analysts are looking for earnings of $1.27 per share on revenues of $73.8 billion. When the company last reported on July 27, earnings of 92 cents per share missed estimates by 35 cents on a 26.6% rise in revenues.
Large-Cap Stocks to Sell: General Electric (GE)
General Electric (NYSE:GE) shares are looking ugly, falling out of a basing range that has been in play since March as the market continues to be skeptical of the company’s new leadership and their tepid turnaround plans. Shares are down nearly 60% from the highs seen in late 2016 to return to levels not seen since late 2011.
The company will next report results on Oct. 19, before the bell. Analysts are looking for earnings of 22-cents-per-share on revenues of $29.9 billion. When the company last reported on July 20, earnings of 19-cents-per-share beat estimates by 19 cents on a 3.5% rise in revenues.
Large-Cap Stocks to Sell: Newmont Mining (NEM)
Newmont Mining (NYSE:NEM) shares continue to decline from a double-top high near the $42-a-share threshold. And now NEM shares are testing lows not seen since the middle of December — a drop of nearly 18% from the highs. Gold prices have been collapsing lately, dropping 12% from the highs seen in April as the U.S. dollar strengthens, setting aside concerns about inflation and geopolitical risk.
The company will next report results on Oct. 25, before the bell. Analysts are looking for earnings of 31-cents-per-share on revenues of $1.9 billion. When the company last reported on July 26, earnings of 26-cents-per-share beat estimates by 2 cents on an 11.4% decline 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.
