Softer Revenue From General Electric

Shares in General Electric fell to a 1-month low of $30.30 after the company reported Q4 revenue which fell short of expectations.

The company’s Q4 earnings of 46 cents per share were in line with forecasts, but the revenue number of $33.08 billion was lower than the consensus estimate of $33.63 billion.

For calendar year 2016, GE delivered $1.49 of earnings per share, 1% organic growth and returned $30.5 billion to share holders through dividends and share buybacks.

We expect GE’s oil and gas operations merger with Baker Hughes will pay dividends throughout 2017 and would look for buyers to return near the November 4th support level at $27.50

It’s somewhat concerning the rollover in GE and likewise in top market cap US financials. We watch these signals closely as further evidence of structural share price weakness.

Our Algo Engine flagged the short signal setup in GE  at or near the recent high of $32.

Chart – GE