Following through on Wednesday’s stumble, the S&P 500 lost another 0.9% of its value on Thursday. Investors are struggling to find the silver lining in the Federal Reserve’s recent commentary in the shadow of a few too many earnings shortfalls.
General Electric (NYSE:GE) was a key driver of the setback, falling 3.3% following news that CFO Jaime Miller would be stepping down. The company, in the midst of a difficult turnaround, might struggle with such a disruption. Bank of America (NYSE:BAC) fell 3.9%, as investors fear the impact that the recent rate cut might have on its lending business margins.
There were a few names that managed to make forward progress in the midst of the fairly indiscriminate selloff. Etsy (NASDAQ:ETSY) was up nearly 2% during Thursday’s regular-hours session. Even then though, ETSY shares tumbled more than 2% after the close when it reported last quarter’s revenue fell short of expectations.
As for tickers that may be worth a closer look headed into the last trading day of the week, however, it’s the stock charts of Occidental Petroleum (NYSE:OXY), PepsiCo (NASDAQ:PEP) and Verizon Communications (NYSE:VZ) that merit closer examination.
Occidental Petroleum (OXY)
It has more to do with oil prices than with Occidental Petroleum in particular, and if it’s going to last, it’s going to do so because the energy sector as a whole is going to help lift it. But, no other oil and gas name besides OXY stock has made as much technical progress this week. Among the sector, it’s possibly the top prospect right now.
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Verizon Communications (VZ)
Verizon Communications has been on the radar for a while now. Although it logged a heroic 2018 despite headwinds felt by most other names, that strength has started to buckle this year. Lower highs have been the norm, and VZ stock has put repeated pressure on critical floors.
This week’s stumble, however, has largely put the final touches on a long-brewing pullback. Although Wednesday’s setback and Thursday’s equally big intraday pullback have likely set up a small bullish pushback, the bigger-picture trend just took a turn for the worst.
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PepsiCo (PEP)
A little more than a week ago, PepsiCo was pegged as a breakdown candidate. Already overbought and ripe for profit-taking, a move under a couple of key support levels suggested something worse could be in store.
There was.
PEP stock continued to slide a little lower the next couple of days before bouncing back. The way, and where, PepsiCo hit resistance again and then rolled over confirms how vulnerable the stock was. Yesterday’s action may have been something of a death blow to the struggling stock.
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As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley.
