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7 Dow Titans Rolling Over

Anthony Mirhaydari

U.S. equities were rolling over on Thursday as hopes for a quick resolution to U.S. trade discussions with China and its NATFA partners have faded amid fresh Twitter tirades from President Donald Trump that negotiations weren’t going the way he wants. Moreover, geopolitical risk has reappear

All of this, as well as seasonal headwinds, “smart hedgers” piling into long volatility positions and the need for some profit taking after an impressive two-month rally, suggests there could be some bumps on the road ahead.

Traders aren’t waiting around, with a number of key large-cap stocks rolling over on profit taking. Here are seven Dow Jones Industrial Average components under pressure.

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Dow Titans: Chevron (CVX)

Dow Titans: Chevron (CVX)

Chevron Corporation (NYSE:CVX) shares have been turned away from resistance near their January high, as sellers came in hard at the $130 level. The double-top formation looks robust with a break below the 20-day moving average setting up a decline back to the 200-day moving average after an impressive 18% rally off of its April lows.

The company will next report results on July 27 before the bell. Analysts are looking for earnings of $1.90 per share on revenues of $47.6 billion. When the company last reported on April 27, earnings of $1.90 beat estimates by 42 cents on a 13% rise in revenues.


Dow Titans: Disney (DIS)

Dow Titans: Disney (DIS)

Walt Disney Co (NYSE:DIS) shares have reversed lower after what looks like a false breakout above its 200-day moving average, falling back down to its 50-day moving average amid ongoing concerns about its media business as well as a lukewarm response to the Solo Star Wars movie. There was some excitement that a Supreme Court decision on sports betting could increase interest in ESPN, but those good feelings are fading fast now.

The company will next report results on Aug. 7 after the close. Analysts are looking for earnings of $1.96 per share on revenues of $15.4 billion. When the company last reported on May 8, earnings of $1.84 beat estimates by 14 cents on a 9.1% rise in revenues.


Dow Titans: Goldman Sachs (GS)

Dow Titans: Goldman Sachs (GS)

Goldman Sachs Group Inc (NYSE:GS) is rounding lower after hitting resistance from its 200-day moving average threatening a breakdown below its early May lows to levels not seen since September. A rebound in long-term Treasury bonds seems to be weighing on sentiment, since it pushes down net interest margins.

The company will next report results on July 17 before the bell. Analysts are looking for earnings of $4.57 per share on revenues of $8.6 billion. When the company last reported on April 17, earnings of $6.95 beat estimates by $1.38 on a 25% jump in revenues.

Dow Titans: IBM (IBM)

Dow Titans: IBM (IBM)

IBM (NYSE:IBM) shares are rounding down after hitting resistance near their upper Bollinger Band, remaining well below their 50-day and 200-day moving averages. The stock is down 14% from its January high as management has lost momentum in key new business growth areas such as cloud.

The company will next report results on July 17 after the close. Analysts are looking for earnings of $3.04 per share on revenues of $19.9 billion. When the company last reported on April 17, earrings of $2.45 beat estimates by three cents per share on a 5.1% rise in revenues.


Dow Titans: Johnson & Johnson (JNJ)

Dow Titans: Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) shares look to be breaking down, threatening to fall below their February/May lows ahead of a possible drop to levels not seen since early 2017. Shares are already down 17% from their January highs as healthcare stocks in general have been under pressure from Trump’s calls for lower drug prices and ongoing uncertainty about the future of the insurance market.

The company will next report results on July 17 before the bell. Analysts are looking for earnings of $2.07 per share on revenues of $20.4 billion. When the company last reported on April 17, earnings of $2.06 beat estimates by six cents on a 12.6% rise in revenues.


Dow Titans: 3M (MMM)

Dow Titans: 3M (MMM)

3M Co (NYSE:MMM) shares have dipped back below their 200-day moving average, continuing a bumpy downtrend pattern going back to the high of $255 set in January. Losses already total more than 21%, but more could be in store ahead of a possible decline back to early 2017 levels. Sellers were motivated by a downgrade by Jefferies analysts last week.

The company will next report results on July 24 before the bell. Analysts are looking for earnings of $2.61 per share on revenues of $8.4 billion. When the company last reported on April 24, earnings of $2.50 per share beat estimates by two cents on a 7.7% rise in revenues.


Dow Titans: Wal-Mart (WMT)

Dow Titans: Wal-Mart (WMT)

Walmart Inc (NYSE:WMT) shares have dropped out of a three-month consolidation range to return to test the lows set earlier this month and threaten a drop back to levels last seen in October. With it falling further away from its 50-day and 200-day moving averages, and down nearly 24% from its January high, shareholders have been frustrated by an intense competitive environment in retail and the reporting of weak same-store sales growth last quarter.

The company will next report results on Aug. 16 before the bell. Analysts are looking for earnings of $1.22 per share on revenues of $124.9 billion. When the company last reported on May 17, earnings of $1.14 beat estimates by two cents on a 4.4% rise in revenues.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

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