U.S. equities are inching higher on Friday thanks to a strong jobs report for June that basically reinforced the status quo: Good payroll gains, a slight increase in the unemployment rate and an ongoing rate of wage inflation. Tech stocks keep flapping around, rebounding higher but within the confines of a multi-week downtrend.
Amid the relief, the medium-term selling pressure is plain to see as many use the buying flurry to exit positions. The heavy tape can be seen in a number of blue-chip components of the Dow Jones Industrial Average, providing a reminder that the bears seem to remain in control.
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Here are three Dow Jones stocks that look ready for some downside extension:
Dow Jones Stocks at Risk: Chevron (CVX)
Chevron Corporation (NYSE:CVX) shares are on the verge of breaking down out of a four-month consolidation range with a drop below $102. Shares are already down some 11% as energy prices have weakened amid rising doubts about OPEC’s ability to close the global oversupply imbalance amid bloated inventories, rising U.S. shale output and tepid U.S. gasoline demand.
The company will next report results on July 28 before the bell. Analysts are looking for earnings of $1.04 per share of CVX on revenues of $32.81 billion.
When the company last reported results on April 28, earnings of $1.41 per share beat estimates by 87 cents on a 42% rise in revenues.
Dow Jones Stocks at Risk: General Electric (GE)
General Electric Company (NYSE:GE) is down another 0.5% in mid-day trading on Friday. GE is hitting a fresh year-and-a-half low breaking down further from its three-month consolidation range with broken support near $27. This extends a loss of more than 17% from its post-election high in December. Shares were hit by word of a price target cut from JPMorgan analysts on Thursday.
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The company will next report results on July 21 before the bell. Analysts are looking for earnings of 25 cents per share of GE stock on revenues of $29.1 billion. The last time the company reported on April 21, earnings of 21 cents per share beating estimates by 4 cents despite a 0.7% decline in revenues from the year-ago period.
Dow Jones Stocks at Risk: IBM
International Business Machines Corp. (NYSE:IBM) shares are on the verge of breaking down out of a three-month consolidation range, failing to move above their 50-day and 200-day moving averages and keeping the 15% decline from the February high intact. IBm continues to struggle to react to the rise of cloud-based services, with word this week that Facebook Inc (NASDAQ:FB) is looking to move its Whatsapp service to its internal cloud, a source of as much as $2 million a month in revenue for IBM.
The company will next report results on July 18 after the close. Analysts are looking for earnings of $2.73 per share on revenues of $19.5 billion. When the company last reported on April 18, earnings of $2.38 per share beat estimates by 3 cents despite a 2.8% decline in year-over-year revenue.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.