U.S. equities are under pressure on Monday amid fresh U.S.-China trade tensions (Beijing is threatening to abandon discussions) and reports in the political press that Deputy Attorney General Rosenstein — who is in charge of the Mueller investigation — has resigned in anticipation of being fired by President Trump.
Subsequent reporting says that Trump and Rosenstein had an extended conversation and will meet on Thursday when Trump returns to Washington D.C.
Stocks are weakening on worries the fate of the Russia investigation is tied up with Rosenstein. Thus, if he goes, the plug could well be pulled on Mueller. Which would raise the specter of political uncertainty heading into the midterm elections in November.
The day’s losses cap a multi-week deterioration in market breadth, with fewer and fewer stocks staying aloft. You can see this in the growing number of stocks that have suffered “death crosses” with their 50-day moving averages falling below their 200-day averages.
Here are eight stocks to sell that have just suffered that classic technical sell signal:
Micron Technology (MU)
Shares of Micron Technology (NASDAQ:MU) remain in a downtrend pattern that started in May after forming a double-top with levels first reached back in March. This is the first significant downtrend that has been seen since shares bottomed in May 2016, near $9.35. Watch for a pullback to the 200-week moving average near $29, which would be a 36% loss from here. Analysts at Needham lowered their price target on Monday on worries over the impact of trade tariffs and inventories.
The company will next report results on Dec. 20, after the close. Analysts are looking for earnings of $2.9 per share on revenues of $8.1 billion. When the company last reported on Sept. 20, earnings of $3.53 beat estimates by 21 cents on a 37.5% rise in revenues.
Facebook (FB)
Shares of Facebook (NASDAQ:FB) remain below their 20-day, 50-day and 200-day moving averages and are struggling to stay above critical support near the $160 level. Concerns over profitability amid a focus on privacy concerns and acquisitions of political bias have mixed with tepid user growth metrics to cast a pall on sentiment.
The company will next report results on Oct. 31, after the close. Analysts are looking for earnings of $1.50 per share on revenues of $13.8 billion. When the company last reported on July 25, earnings of $1.74 beat estimates by 4 cents on a 41.9% rise in revenues.
Noble Energy (NBL)
Shares of Noble Energy (NYSE:NBL) remain mired in a two-month consolidation range and are down nearly 20% from their summertime highs despite the recent strength in crude oil. Shares have also been battered by a series of analyst downgrades, including markdowns from the likes of Mizuho and a coverage initiation with a sell rating at Barclays.
The company will next report results on Nov. 2, before the bell. Analysts are looking for earnings of 21 cents per share on revenues of $1.19 billion. When the company last reported on Aug. 3, earnings of 17 cents per share missed estimates by 5 cents on a 16.1% rise in revenues.
CBL and Associates Proper (CBL)
Shares of real estate investment trust CBL and Associates Proper (NYSE:CBL) are drifting lower and threatening to break below a two-month consolidation range to return to levels last seen over the spring. This stock to sell was hit with a downgrade from analysts at BTIG Research back in August and it has also been pressured by the weakness in Treasury bond prices, pushing up yields and thus weighing on yield-sensitive areas of the market, such as REITs.
The company will next report results on Oct. 29, after the close. Analysts are looking for earnings of 41 cents per share on revenues of $207.7 million. When the company last reported on Aug. 1, earnings of 46 cents per share beat estimates by 4 cents on a 6.4% decline in revenues.
QEP Resources (QEP)
While shares of QEP Resources (NYSE:QEP) have been rallying in recent days, the weakness seen in July and August is continuing to push down the 50-day moving average, pushing it below the 200-day average for the first time since January. Shares were downgraded by Johnson Rice analysts back in late July.
The company will next report results on Oct. 24, after the close. Analysts are looking for a loss of 7 cents per share on revenues of $497.8 million. When the company last reported on July 25, earnings of 6 cents per share beat estimates by 17 cents on a 38.8% rise in revenues.
Seagate Technology Holdings (STX)
Like many semiconductor and memory-related stocks to sell, Seagate Technology Holdings (NASDAQ:STX) shares have been under pressure in recent months on worries over the health of the market amid evidence of waning demand and growing inventories. Analysts at Evercore ISI downgraded shares in early September on concerns over limited near-term upside in shares from current levels.
The company will next report results on Oct. 29, before the bell. Analysts are looking for earnings of $1.57 per share on revenues of nearly $3 billion. When the company last reported on July 30, earnings of $1.62 per share beat estimates by 17 cents on a 17.8% rise in revenues.
Zillow (Z)
With evidence growing that the housing market is slowing, shares of Zillow (NASDAQ:Z) are breaking down out of a two-month consolidation range to test lows not seen since December. As a result, this is the first definitive break of the 50-week moving average since shares IPO’d back in 2015.
The company reported quarterly results back on Aug. 7, with non-GAAP earnings-per-share more than tripling to 13 cents on a 21.9% rise in revenues. But forward guidance was weak.
Cognizant Technology Solutions (CTSH)
Cognizant Technology Solutions (NASDAQ:CTSH) shares are once again struggling to climb back above their 200-day moving average, continuing a consolidation range going back to May as the long uptrend that started in late 2016 and saw shares rise from a low of $44.80 to a high of $84.65 in March comes to an end.
The company will next report results on Nov. 1, before the bell. Analysts are looking for earnings of $1.05 per share on revenues of $4.1 billion. When the company last reported on Aug. 2, earnings of $1.19 beat estimates by 9 cents on a 9.2% 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.
