The Dow Jones Industrial Average wrapped up November with significant gains, continuing the upward trend in the stock market rally. As we step into December 2023, let’s take a closer look at the best Dow Jones stocks to buy and watch, including Apple (AAPL), Boeing (BA), Intel (INTC), Microsoft (MSFT), and Visa (V).
Performance Highlights: At the outset of December, certain Dow Jones stocks have emerged as clear winners and losers. Notable performers include Salesforce (CRM), Intel, and Microsoft, with impressive rallies of 89.1%, 60.2%, and 53.9%, respectively, through December 5. Conversely, Walgreens Boots Alliance (WBA), Chevron (CVX), and Three M (MMM) faced declines of 44.4%, 19.3%, and 13.7%.
Market Overview: In broader market trends, the Nasdaq, driven by technology stocks, surged by 36% through December 5, while the S&P 500 gained 19%. The Dow Jones Industrial Average itself registered a 9% rise year-to-date.
Understanding the Dow Jones Industrial Average: Established in 1896 with an initial 12 stocks, the Dow Jones Industrial Average is one of the oldest stock market indexes, comprising 30 stocks that serve as a barometer for the overall U.S. stock market. Other key indexes include the technology-focused Nasdaq Composite and the S&P 500, representing the 500 largest U.S. companies.
Strategic Focus Amid the Rally: During the ongoing stock market rally, as suggested by the IBD Big Picture, investors are advised to concentrate on stocks exhibiting robust relative strength. Such stocks could potentially lead the market in 2023 if the Dow Jones Industrial Average sustains its recent gains.
Highlighted Dow Jones Stocks:
- Apple (AAPL): Apple shares rose 1.7% on Wednesday, maintaining a position above a cup-with-handle entry at 192.93. Despite a slight dip on Thursday, the stock showcases a robust IBD Composite Rating of 91, emphasizing its strength in key fundamental and technical metrics.
- Boeing (BA): Aerospace giant Boeing is breaking out past a cup base’s 243.10 buy point, marking a 3.1% rally on Friday. The stock has sustained a winning streak for seven consecutive sessions.
- Intel (INTC): As a chip leader, Intel is currently beyond the buy range after reaching a double bottom’s 37.22 buy point. With shares approximately 15% past that entry, INTC stock demonstrated a 0.4% uptick on Thursday.
- Microsoft (MSFT): Microsoft stock experienced a slight decline on Wednesday, hovering just above a cup base’s 366.78 buy point. Despite this, recent weeks witnessed shares surpassing an early buy trigger at 346.20, demonstrating resilience.
- Visa (V): As a leader in payments, Visa is within the buy range beyond a cup base’s 250.06 buy point. Additionally, shares are marginally above an early buy trigger at 241.48, despite a 2% decline on Thursday.
As December unfolds, keeping an eye on these Dow Jones stocks, understanding their buy points, and monitoring their performance can provide valuable insights for investors navigating the dynamic market landscape.
