U.S. equities are under pressure on Thursday as Washington criticizes China for its protest crackdown in Hong Kong. This, in turn, is threatening to undermine chances of a U.S.-China trade agreement after months of near-constant hints and teases that a deal was coming. As a reminder, the United States is set to impose another tariff hike on imports from China in December without a deal.
And while President Donald Trump’s administration is trying to salvage optimism — with reports this morning that tariffs could be held back even without a trade deal — the nagging concern is that a deal just doesn’t happen before the 2020 presidential election. Beijing is likely betting that Trump is going to be replaced by a democrat more willing to pen a deal favorable to them.
But until then, stocks are feeling the heat with selling focused on areas like retailers heading into the critical holiday shopping season. Here are six popular retail stocks that are being sold hard:
Nordstrom (NYSE:JWN) shares are dropping back down below their 200-day moving average, threatening a return to the lows set back in August, which would be worth a loss of more than 25% from here.
The company will report on Thursday night after the close. Wall Street is looking for earnings to drop 89% from last year on a 1.7% drop in revenue. JWN management continues to focus on strategic initiatives like Growth 150 and Backstage stores as well as digital and mobile initiatives.
Shares of beleaguered retail stock Gap (NYSE:GPS) are threatening to fall down out of a four-month consolidation range threatening a drop back to the 2016 low near $15, which would be worth a loss of more than 6% from here. Coverage was recently initiated with an underweight rating by a Barclays analysts.
The company will next report results on Nov. 21 after the close. Analysts are looking for earnings of 51 cents per share on revenues of nearly $4 billion.
American Eagle Outfitters (AEO)
Shares of American Eagle Outfitters (NYSE:AEO) are threatening to also fall out of four-month consolidation range, capping a decline of more than 50% from here. Watch for a drop back to the lows seen in the middle of 2017, which would be a drop of roughly a third from here.
The company will next report results on Dec. 11 before the bell. Analysts are looking for earnings of 48 cents per share on revenues of $1.1 billion.
Shares of Kohls (NYSE:KSS) are dropping back below their 200-day moving average, returning to the lower end of its six-month consolidation range. A breakdown here would likely result in a loss of a third, returning to the lows seen in the summer of 2017. Shares were recently downgraded by analysts at Goldman.
The company will next report results on March 3, analysts are looking for earnings of $1.99 per share on revenues of $6.6 billion.
Urban Outfitters (URBN)
Shares of Urban Outfitters (NASDAQ:URBN) have dropped back below their 200-day moving average, returning to the summertime trading range. Watch for a possible return to the August lows near $20, which would result in a loss of 20%. Overall, shares have lost roughly 50% from the highs seen in the summer of 2018.
The company will next report results on March 3 after the close. Analysts are looking for earnings of 72 cents per share on revenues of $1.2 billion.
Foot Locker (FL)
Shares of Foot Locker (NYSE:FL) dropped back below their 50-day moving average after stalling at the 200-day moving average that has kept a lid on prices after breaking down back in May. Watch for a return to a low of $34 set back in late August.
The company will next report results on Nov. 22. Analysts are looking for earnings of $1.08 per share on revenues of $1.9 billion.