U.S. equities took a bit of a breather on Thursday as U.S.-China trade talks intensify. Reports are that negotiators are working up six memorandums of understanding (MoUs) on structural issues such as technology transfers, currency movements, agriculture and more.
Hopes are high that a deal gets cobbled together, removing the threat of further tariffs, and freeing the Trump Administration to focus on worsening trade tensions with the Europeans.
On the economic front, there’s been good news as well with durable goods orders increasing 1.2% in December and the latest Federal Reserve meeting minutes suggesting that “quantitative tightening” could be wound down later this year. As a result, a number of large-cap stocks are looking ready to extend their rebounds. Here are five to watch:
Ford (F)
Ford (NYSE:F) shares have rallied to the upper end of its three-month consolidation range, retaking its 50-day moving average. This has set up a challenge of its October-December highs. F stock is at the center of an auto tariff standoff between the United States and Europe, with President Trump threatening further action if a deal can’t be made. Yet hope springs eternal.
The company will next report results on April 24 after the close. Analysts are looking for earnings of 26 cents per share on revenues of $37.4 billion. When the company last reported on Jan. 23, earnings of 30 cents per share matched estimates on a 0.5% rise in revenues.
AT&T (T)
Shares of AT&T (NYSE:T) are crossing over their 200-day moving average for the first time since October, marking a rise of roughly 20% off of their December lows. President Trump voiced his excitement over new wireless technologies such as 5G, despite security concerns over Chinese hardware manufacturers, suggesting his government will support “even 6G” as soon as possible.
The company will next report results on May 1 before the bell. Analysts are looking for earnings of 87 cents per share on revenues of $45.5 billion. When the company last reported on Jan. 30, earnings of 86 cents per share beat estimates by 2 cents on a 15.2% rise in revenues.
AMD (AMD)
AMD (NASDAQ:AMD) shares are extending away from their 20-day moving average in what looks like a picture perfect lift off of a five-month basing pattern. Watch for a move to the mid-October reaction high, which would be worth a gain of roughly 20% from here amid steady interest in semiconductor stocks.
The company will next report results on April 30 after the close. Analysts are looking for earnings of 2 cents per share on revenues of $1.3 billion. When the company last reported on Jan. 29, earnings of 8 cents per share matched estimates on a 5.9% rise in revenues.
US Steel (X)
US Steel (NYSE:X) shares are extending above a three-month uptrend channel, setting the stage for a march to the early November highs and a possible break of the long-term downtrend channel that has been in place since early 2018. Shares were recently upgraded to Buy by analysts at Berenberg.
The company will next report results on May 1 after the close. Analysts are looking for earnings of 42 cents per share on revenues of $3.3 billion. When the company last reported on Jan. 30, earnings of $1.82 missed estimates by a penny on a 17.8% rise in revenues.
Nvidia (NVDA)
Shares of Nvidia (NASDAQ:NVDA) are challenging the highs of a sideways channel that goes back to November and capped a nasty decline of more than 50% from the early October highs. A lot of headwinds have been priced into NVDA stock now — from a slowdown in cryptocurrency-related demand to fresh competition from AMD — presenting a modicum of value amid its exposure to trends like self-driving cars and AI.
The company will next report results on May 16 after the close. Analysts are looking for earnings of 60 cents per share on revenues of $2.2 billion. When the company last reported on Feb. 14, earnings of 80 cents per share beat estimates by 5 cents despite a 24.3% decline in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
