[Editor’s note: This story has been edited since publication.]
U.S. equities came under pressure Friday, nearly setting up the first weekly decline for the Dow Jones Industrial Average since the December low, as investors focus on profit-taking.
No major catalysts are in play, aside from a nagging fear that the U.S.-China trade talks aren’t going as well as the Trump Administration had led on. This after President Donald Trump indicated he wouldn’t be meeting with his Chinese counterpart soon. Also weighing is the approach of another government shutdown deadline, as well as the debt ceiling, which will come into play in March.
With Trump and Congressional Democrats still far apart on the border wall issue, the concern is that a 2011-style standoff (back when President Barack Obama and House Republicans faced off over the budget) is coming.
As a result, a number of large-cap stocks are rolling over badly. Here are five to watch:
Click to Enlarge Twitter (NYSE:TWTR) shares are falling away from resistance near its 200-day moving average, setting up a retest of the critical support lows near the $26-a-share threshold. The company last reported on February 7, with earnings of 31 cents per share beating estimates by seven cents on a 24.2% rise in revenues.
Monthly average users were in line with estimates, but the company’s announcement it would discontinue reporting that metric raised suspicions the company was bracing for bad news, and thus didn’t want to talk about it. The company will next report results on May 9 before the bell.
The telecom sector has been in the political news with reports President Trump is expected to sign an executive order banning Chinese telecom equipment from U.S. wireless networks — something that could potentially hamstring the rollout of 5G networks.
The company will next report results on April 24 before the bell. Analysts are looking for earnings of 87 cents per share on revenues of $45.2 billion. When the company last reported on January 30, earnings of 86 cents per share beat estimates by two cents on a 15.2% rise in revenues.
Morgan Stanley (MS)
Shares are already down nearly 30% from the highs set in early 2018 as global market volatility weight on results. Analysts at Societe Generale recently downgraded shares to Sell from Hold.
The company will next report results on April 17 before the bell. Analysts are looking for earnings of $1.38 per share on revenues of $10.7 billion.
When the company last reported on January 17, earnings of 80 cents per share missed nine cents per share on a 10% drop in revenues.
Click to Enlarge Amazon (NASDAQ:AMZN) shares are breaking down out of a two-month consolidation range, as a lot of things fall apart on the political front. CEO Jeff Bezos is embroiled in a messy divorce/lewd picture scandal playing out in the tabloids.
The turmoil surrounding the governor of Virginia could threaten its HQ2 facility there, while the Washington Post (owned by Bezos) is reporting the company is reconsidering its NYC HQ2 facility in response to local opposition.
The company will next report results on April 25 after the close. Analysts are looking for earnings of $4.74 per share on revenues of $59.7 billion. When the company last reported on January 31, earnings of $6.04 per share beat estimates by 53 cents per share on a 19.7% rise in revenues.
These five blue-chip stocks are dangerously close to rolling over.
Click to Enlarge Ford (NYSE:F) shares are breaking down below their 50-day moving average, failing to even test the prior highs set in November as evidence grows of a worsening rout in auto demand.
With inventories accumulating on dealer lots, increased promotional activity and production cuts look likely. Another big unknown is the fate of trade talks with Europe and China concerning automotive tariffs.
The company will next report results on April 25 after the close. Analysts are looking for earnings of 28 cents per share on revenues of $37.5 billion. When the company last reported on January 23, earnings of 30 cents per share matched estimates on a 0.5% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.