Stocks are drifting lower on Wednesday as overhead resistance near 18,600 in the Dow Jones Industrial Average — the top of the two-month trading range — cuts the post-payrolls rally short.
Fresh weakness in crude oil, along with a disappointing labor productivity report and ongoing declines in corporate profitability, are all weighing on sentiment.
Not to mention that we’re heading into what’s been a historically weak period of market seasonality over recent years.
While trading overall remains subdued and quiet, a number of popular large-cap stocks are rolling over and look vulnerable to some downside extension. Here are three to keep an eye on:
Large-Cap Stocks to Watch: Tesla Motors Inc (TSLA)
Tesla Motors Inc (NASDAQ:TSLA) shares are rolling over after stalling out just below the $240 level that’s capped upward progress since May.
Investors have had a lot to think about following the triumphant unveiling of the Model 3 earlier in the year, including a number of Autopilot related crashes (the latest in China), a worrisome cash burn rate and the acquisition of SolarCity Corp (NASDAQ:SCTY).
The company will next report results on Nov. 2 after the bell. Analysts are looking for earnings of 5 cents per share on revenues of $2.3 billion.
Large-Cap Stocks to Watch: Exxon Mobil Corporation (XOM)
Exxon Mobil Corporation (NYSE:XOM) suffered a 10% fall from its July high into the low set earlier this month before a short-covering rebound rally in crude oil provided some relief.
But a new downturn appears to be underway on Wednesday as shares turn away from the $88 level. Edge Pro subscribers just closed a position in the Aug $94 XOM puts for a gain of 253%.
The company will next report results on Oct. 28 before the bell. Analysts are looking for earnings of 71 cents per share on revenues of $69 billion.
Large-Cap Stocks to Watch: ConocoPhillips (COP)
ConocoPhillips (NYSE:COP) shares have been in a persistent downtrend since June — after double-topping near $48 — and look ready for another test of support at the $40 level.
The company reported a top- and bottom-line miss on July 28, posting a loss of 79 cents per share on a 36% year-over-year drop in revenues. Edge Pro subscribers closed a 51% gain in the Aug $41 COP puts on July 27.
The company will next report results on Oct. 27 before the bell. Analysts are looking for a loss of 47 cents per share on revenues of $8.3 billion.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
