U.S. equities were under pressure again on Tuesday as investors remain fearful over rising Treasury bonds, trade tensions and the budget situation in Italy. There was some relief near the open as Italian bond yields pulled back from their highs, but buyers aren’t showing a lot of conviction here amid a lot of sector rotation rather than persistent and widespread buying.
For instance, big-cap technology stocks are lifted the Nasdaq Composite yesterday while the Dow Jones Industrial Average lagged. On Monday, an end-of-day rally was led by big bank stocks. The churn isn’t a good sign.
Caught up in all the chaos are a number of consumer stocks — both consumer staples and consumer discretionary — suggesting that higher borrowing costs could weigh on credit card purchases and auto financing and thus pinch end-user demand.
With all that chaos in mind, here are seven stocks to sell:
General Motor (GM)
General Motors (NYSE:GM) shares are breaking down hard here, falling below their two-month consolidation range and their late March lows to return to levels not seen since early 2017. The company recently announced that Honda (NYSE:HMC) would be partnering with it to build autonomous vehicles. Self-driving cars are cool and all, but if affordability takes a hit as higher interest rates push up monthly payments, sales volume will suffer.
The company will next report results on Oct. 31, before the bell. Analysts are looking for earnings of $1.24 per share on revenues of $35.5 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.
Ford (F)
Ford (NYSE:F) shares are breaking down here out of a three-month consolidation range to return to levels not seen since all the way back in late 2012. With a break below the $9-a-share threshold, the stock is now down nearly a third from the highs set in January as worries about higher auto loan rates and falling sales volume weigh on sentiment.
The company 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 revenue.
Mohawk Industries (MHK)
Shares of Mohawk Industries (NYSE:MHK) — which is a maker of flooring products for commercial and residential spaces — are in meltdown mode down another 4.7% in trading on Tuesday to cap a decline of roughly 30% from the levels seen in July. Shares were recently downgraded by analysts at JPMorgan as higher mortgage rates threaten to slow the housing market.
The company will next report results on Oct. 25, after the close. Analysts are looking for earnings of $3.60 per share on revenues of $2.6 billion. When the company last reported on July 25, earnings of $3.51 beat missed estimates by 39 cents per share on a 5.1% jump in revenues.
Kraft Heinz (KHC)
Shares of Kraft Heinz (NASDAQ:KHC), maker of brand name goods like Velveeta and Oscar Mayer, are drifting down to test the lows of a trading range going back to early May. Already down 13% from the highs set in early August, watch for a test of the lows near $53, which would be worth another 5% downside from here. The company reportedly recently passed on a takeover offer for Campbell Soup (NYSE:CPB).
The company will next report results on Nov. 1, after the close. Analysts are looking for earnings of 82 cents per share on revenues of $6.3 billion. When the company last reported on Aug. 3, earnings of $1 per share beat estimates by 8 cents on a 0.7% rise in revenues.
Goodyear Tire and Rubber (GT)
Shares of auto supplier Goodyear Tire and Rubber (NASDAQ:GT) are breaking down out of a multi-month consolidation range to test the lows last seen in late July. The stock is already down nearly 40% from the highs seen back in January and are likely headed to the lows set in October 2014 near $18-a-share, which would be a further loss of 18% from current levels.
The company will next report results on Oct. 26, before the bell. Analysts are looking for earnings of 73 cents per share on revenues of nearly $4 billion. When the company last reported on July 27, earnings of 62 cents per share beat estimates by a penny on a 4.2% rise in revenues.
Whirlpool (WHR)
Shares of Whirlpool (NYSE:WHR) are another housing/consumer related stock just getting hammered despite some beginning-of-the-year buying interest after President Trump enacted a tariff on imported washing machines. From the high of $183 set in January, the stock is already down nearly 43% and has broken below the early 2016 lows near $115.
The company will next report results on Oct. 24, after the close. Analysts are looking for earnings of $4.2 per share on revenues of $5.4 billion. When the company last reported on July 23, earnings of $3.20 per share missed estimates by 46 cents on a 3.9% decline in revenues.
Harley Davidson (HOG)
Higher rates and a downward risk to consumer confidence? There are likely to be fewer Harleys bought. That’s pushing down shares of Harley Davidson (NYSE:HOG) out of a triple-top resistance pattern near the $46-a-share level, in what looks like a looming test of resistance near $40. Analysts at Wedbush recently lowered their price target to $40, noting another disappointing quarter of retail demand and underwhelming dealer channel checks.
The company will next report results on Oct. 23, before the bell. Analysts are looking for earnings of 59 cents per share on revenues of $1.1 billion. When the company last reported on July 24, earnings of $1.52 per share beat estimates by 9 cents on a 3.3% decline in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
