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5 Dow Jones Stocks Threatening Dow 26,000

William Roth

U.S. equities are under pressure on Wednesday after European Central Bank President Mario Draghi failed to reassure investors amid evidence of an economic slowdown across Europe. Trying to recapture the magic of his 2012 “whatever it takes” statement, he said the institution wasn’t worried about recession risk since it was ready to use “all instruments” to support growth with monetary policy.

Markets yawned. Central bankers suddenly seem less than omnipotent.

Adding to the pressure is ongoing problems for Boeing (NYSE:BA) with a lawsuit filed for allegedly defrauding investors after two fatal crashes of its 737 MAX aircraft. Shares are down another 1.3% in mid-day trading, hitting fresh post-crash lows and threatening to take out its 200-day moving average.

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As a major component of the Dow Jones Industrial Average, the drag is threatening to pull the index below the psychologically critical 26,000 level. Along with Boeing, here are a number of other Dow Jones stocks that are looking very weak:


Boeing (BA)

Boeing (BA) Dow Jones Stocks

Source: Shutterstock

 

After seemingly heading off the worst following two fatal crashes of its 737 MAX aircraft, BA shares are risking a return to their late December low. This comes amid growing evidence the company’s rush to compete with Airbus resulted in, well, poor choices for the implementation of an anti-stall auto-pilot feature that resulted in the loss of human life. Adding to its woes is the filing of a class action lawsuit and China’s decision to ground a number of 787s for GPS problems.

The company will next report results on April 24 before the bell. Analysts are looking for earnings of $3.74 per share on revenues of $24.27 billion. When the company last reported on Jan. 30, earnings of $5.48 beat estimates by 93 cents on a 14.4% rise in revenues.


American Express (AXP)

American Express (AXP) Dow Jones Stocks

Source: Marcus Quigmire Via Flickr

American Express (NYSE:AXP) shares are stalling near resistance from their prior high set in September and again in December near the $110-$112 levels. Watch for a breakdown below the 50-day moving average setting up a test of the 200-day average, which would be worth a loss of more than 5% from here. Investors haven’t gotten very excited about the renewed deal with Delta Airlines (NYSE:DAL).

The company will next report results on April 18 before the bell. Analysts are looking for earnings of $2 per share on revenues of $10.5 billion. When the company last reported on Jan. 17, earnings of $1.84 beat estimates by 4 cents on a 7.9% rise in revenues.


Caterpillar (CAT)

Caterpillar (CAT) Dow Jones Stocks

Source: Anthony via Flickr

Caterpillar (NYSE:CAT) shares are threatening to fall back below its 50-day and 200-day moving averages after stalling near prior highs as part of a seven-month consolidation range. The stock was recently downgraded from buy to hold by Deutsche Bank analysts citing evidence that global synchronized economic growth had “collapsed” and that Europe was slowing more than expected.

The company will next report results on April 24 before the bell. Analysts are looking for earnings of $2.86 per shear on revenues of $13.48 billion. When the company last reported on Jan. 28, earnings of $2.55 per share missed estimates by 44 cents on an 11.2% rise in revenues.


General Electric (GE)

General Electric (GE) Dow Jones Stocks

Source: Shutterstock

After a 50% rally off of its December lows, General Electric (NYSE:GE) is once again suffering an existential crisis as its shares drop out of a three-month pennant pattern with a sharp fall below its 50-day moving average. Watch out for a decline to the January trading range, which would be worth a loss of more than 8% from here.

The company will next report results on April 30 before the bell. Analysts are looking for earnings of 8 cents per share on revenues of $27.79 billion. When the company last reported on Jan. 31, earnings of 17 cents per share missed estimates by 5 cents on a 5.3% rise in revenues.


Johnson & Johnson (JNJ)

Johnson & Johnson (JNJ) Dow Jones Stocks

Source: Shutterstock

Shares of Johnson & Johnson (NYSE:JNJ) are dribbling lower out of a three-month consolidation range, threatening a breakdown below their 200-day moving average. Shares failed to challenge the prior high set back in December and have been stuck in a sideways range since late 2017.

The company will next report results on April 16 before the bell. Analysts are looking for earnings of $2.04 per share on revenues of $19.63 billion. When the company last reported on Jan. 22, earnings of $1.97 beat estimates by 2 cents on a 1% rise in revenues.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.

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