Global equities are again being hit hard on Tuesday as the uncertainty over the trade war with China continues. With a delegation from Beijing due this week, and Trump threatening to raise tariffs on Friday without an agreement, this is set to be a high stakes standoff.
And this comes after months of breathless leaks to the media about all the positive progress being made towards an agreement.
Stocks are likely to continue heading lower unless Beijing folds under pressure. Which seems unlikely. As a result, a number of market heavyweights are suffering breakdowns. Here are four mega-cap stocks to sell:
Cisco Systems (CSCO)
Click to EnlargeShares of Cisco (NASDAQ:CSCO) are breaking down below their 50-day moving average for the first time since the middle of December. Watch for a return to its 200-day moving average, which would be worth a decline of roughly 11% from here. This comes despite the recent announcement of a $15 billion increase in its share buyback program.
The company will next report results on May 15 after the close. Analysts are looking for earnings of 77 cents per share on revenues of $12.9 billion. When the company last reported on February 13, earnings of 73 cents per share beat estimates by a penny on a 4.7% rise in revenues.
DowDuPont (DWDP)
Click to EnlargeShares of chemical maker DowDuPont (NYSE:DWDP) are breaking down out of a six-month consolidation range, returning to levels last seen in late 2016. This marks a 34% decline from the highs seen in early 2018.
The company will next report results on August 1 before the bell. Analysts are looking for earnings of 82 cents per share on revenues of $11.5 billion. When the company last reported on May 2, earnings of 84 cents per share beat missed estimates by a penny on an 8.7% decline in revenues.
International Business Machines (IBM)
IBM (NYSE:IBM) shares are weakening after trying to stabilize below its 50-day moving average, setting up a test of its 200-day average that will likely give way to a fill of the January gap move higher. Such a decline would be worth a loss of nearly 10% from here as investors continue to wonder if the company will ever again post sustained revenue growth.
Management will next report results on July 17 after the close. Analysts are looking for earnings of $3.10 per share on revenues of $19.2 billion. When the company last reported on April 16, earnings of $2.25 beat estimates by a penny on a 4.7% decline in revenues.
Nike (NKE)
Nike (NYSE:NKE) shares are falling out of a four-month consolidation range, setting up a drop back to the October-December highs, which would be worth a loss of more than 6% from here. While the stock was able to set an incremental new high, prices have been centered on the $80-a-share level since the summer of 2018. That range looks set to continue despite a recent upgrade from analysts at Citigroup.
The company will next report results on June 27 after the close. Analysts are looking for earnings of 66 cents per share on revenues of $10.2 billion. When the company last reported on March 21, earnings of 68 cents per share beat estimates by three cents on a 7% rise in revenues
As of this writing, the author held no positions in the aforementioned securities.
