Why Are These Stocks Trading Deep in Red on Friday?

Technical Traders Sell Chemours

Chemours Co (NYSE:CC) is trading almost 7% lower today as technical traders take profits on the company’s intermediate-term rally, in which shares of the company have tripled from their February lows. Despite today’s sell-off, the technical picture is still bullish, as Chemours is above its 200 simple day moving average. A total of 22 investors in our database held $190.84 million worth of Chemours Co (NYSE:CC) shares heading into 2016, versus 24 funds and $171.78 million, respectively, a quarter earlier.

Technical Selling Weigh on Exelixis’ Stock

Although there is no fundamental news concerning Exelixis, Inc. (NASDAQ:EXEL) today, shares of the company are 3% lower as technical investors sell due to the broader market sell-off. The NASDAQ index is down 1.22%, and some traders are in ‘risk-off’ mode until better economic or earnings data hit the wires. Mark Kingdon’s Kingdon Capital was one of the 17 savvy investors that we track that held shares in Exelixis, Inc. (NASDAQ:EXEL) as of the most recent 13F reporting period.

Visa Lower Despite Earnings Beat

Visa Inc (NYSE:V)’s shares have retreated by 3.5% today, despite the company reporting better-than-expected results on Thursday. For its fiscal second quarter, Visa posted EPS of $0.68 per share on revenue of $3.63 billion, beating estimates by $0.01 per share and $30 million, respectively. The payment volume rose by 12% year-over-year to $1.3 trillion, while cross border volume inched up 5%. Perhaps causing today’s decline is soft guidance. The management expects sales to rise between 7% and 8% the full year, versus the previous guidance of high single-digit to low double-digit percentage growth. Profit guidance is also lower, with the company now expecting low double-digit net income growth, versus the previous mid-teens growth. Nevertheless, some investors will still stick with Visa Inc (NYSE:V), such as Warren Buffett’s Berkshire Hathaway, which was one of the top holders of the company at the end of the fourth quarter.

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