AT&T, Ford, Verizon All Drop More Than 5%: No “Broadening Out” Rally

AT&T
T
, Ford and Verizon each dropped by more than 5% by the close of Monday’s session of trading. Although the Dow Jones Industrials, the Standard and Poor’s 500 and the NASDAQ
NDAQ
-100 ended the day in the green, it’s unusual and different to see big name brands refuse to go along with the action — to put it mildly.

Not only that, but this loss in these huge market capitalization stocks also comes at a time when some in the financial media have begun talking about how a “broadening out” from just the tech sector is beginning to unfold. Today’s lack of buying in these 3 majors would seem to run counter to that narrative.

This is the opposite of broadening out.

AT&T, Ford and Verizon Price Charts:

That’s 6.69% drop in one trading session, on huge volume, for one of the most well-known companies in the world. Take a look at the hugeness of the red volume bar, underneath the price. What had been a $19.75 stock in early February is now worth $13.53, slippage of 31% in a little more than 5 months.

AT&T has a market capitalization of $100.86 billion. The stock is a component of the Standard & Poor’s 500 index and a former component of the Dow Jones Industrials. By the way, today’s selling took the price to below its October, 2022 support level. Here’s the weekly chart:

The daily price chart for Ford Motor looks like this:

The auto manufacturer had a solid up trend going for all of June, but that’s all over now. Today’s gap down comes on heavier-than-usual volume, a metric that tends to confirm the seriousness of the dumping. Ford’s market capitalization is $56.16 billion. It’s a Standard and Poor’s 500 component. The stock may have appeared to be part of a “broadening out” phenomenon last month, but no more.

Investors just could not stop selling this stock Monday as the big red volume bar indicates. The price drop of 7.50% is remarkable making it one of the worst performing companies traded today on the New York Stock Exchange. Verizon has a market capitalization of $134.71 billion.

This is another one where the previous lows on the weekly chart were taken out by the vastness of the selling. Here’s how that time frame looks for Verizon:

It’s hard to imagine a real “broadening out” market thesis when these widely followed, big-name companies are being sold so fiercely. Although each stock reflects many factors and different conditions, the lack of buying interest on an up day for each of the major indexes is troubling.