A handful of stocks are entering or about to enter the worrying so-called death cross. A death cross is a price chart pattern that occurs when a stock’s 50-day moving average falls below its 200-day moving average, signaling that investors are bearish on a stock or that the stock’s momentum is weakening and could continue valleys. A deathcross can also be an indication of an upcoming bear market pattern. Three names, including fast food chain McDonald’s and semiconductor company Intel, are drawing a death cross or have already formed one, according to a screen from CNBC Pro. Of these names, Intel’s share price has already fallen the most. The chipmaker, which remains the largest maker of processors that power PCs and laptops, is down 38.5% this year, making it the worst-performing tech stock in the S&P 500 this year. Intel Intel disappointed Wall Street’s expectations for the first quarter last week when it posted earnings per share, but a slight gain. The company also gave a weak forecast for the current quarter. After the publication, Goldman Sachs analyst Toshiya Hari maintained his sell rating. He noted that Intel has fallen behind as traditional demand for servers has been displaced due to “continued prioritization of AI infrastructure spending by cloud and enterprise customers,” and he was concerned that it will continue to lose market share within the data center computing market to peers. such as Nvidia and Arm. McDonald’s McDonald’s has also signed a death cross. The stock is down 8.8% this year as the burger chain has struggled amid a slump in consumer spending and boycotts over the Gaza conflict. The company missed first-quarter profit expectations as same-store sales fell short of expectations. CVS Health Unlike the other two names, CVS Health is approaching a death cross. Shares are down nearly 30% this year and tumbled about 17% this week alone after CVS missed earnings on Wednesday and revised down earnings estimates. The company also lowered its full-year earnings outlook due to higher medical costs that are likely to persist throughout the year. UBS analyst Kevin Caliendo downgraded CVS stock to neutral from buy on the weak report. “Our lack of conviction is not due to a lack of confidence in MGT’s process,” Caliendo said in a note Wednesday. “Our problem is that there were more parts of the business that needed a reset, and a solution is not as simple as ‘cutting benefits and repricing’ and margins will improve.”
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These large, well-known stocks form the dreaded death cross chart pattern
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