The Dow Jones Industrial Average commenced collapsing during March, with Covid-19 creeping throughout the globe, arriving at a low of 23.2 percent in the first quarter of 2020. Yet the Dow Jones industrials and the S&P 500 have so far come together dramatically in April. The Dow Jones shares to watch are Apple (AAPL), Microsoft (MSFT), and Walmart (WMT). Microsoft’s portfolio momentarily regained its purchasing price Monday before the close of the session below, although Apple is reaching a new purchasing price.
Following solid results late Wednesday, Microsoft stock is above its buy-point. Apple is over a new buy-point in the purchase range ahead of today’s earnings report.
There are obvious winners — and losers — within the first three months of 2020. After the first quarter, the top three Dow Jones shares were Microsoft, Walmart, and Intel (INTC). Microsoft ended up one penny for the quarter, while Walmart and Intel fell 4.4 percent and 9.6 percent respectively.
The three biggest losers in the first quarter were Boeing (BA), Dow (DOW), and Exxon Mobil (XOM) with losses of 54.2 percent, 46.6 percent, and 45.6 percent.
In 2020, more than 34% of Dow Jones’ industrials slid on the 23 March close. The tech-heavy Nasdaq dropped 23.5 percent, while the S&P 500 plummeted 30.7 percent by the end of March 23. However, after a strong rebound in April, the major stock indices cut these losses sharply.
The Dow Jones Industrial Average is down 15.1 percent by April 17, while the S&P 500 is down 11 percent. The Nasdaq is down 3.6 percent.
What Is The Dow Jones Industrial Average?
Created in 1896 with 12 stocks, the Dow Jones Industrial Average is one of the oldest stock market indices. There are 30 Dow Jones shares intended to act as a bellwether for the broader U.S. stock market. Such big stock indexes include the technology-heavy benchmark Nasdaq and the S&P 500 index — an index of the 500 biggest firms in the United States.
Dow Jones Shares To Watch
In the wake of the latest Covid-19 stock market rally — according to the IBD Big Picture — investors will be focused on the companies they are building up and breaking up. These stocks will have strong relative strength lines and could be some of the latest uptrend stock market leaders.
Potential Dow Jones locations to buy and watch in April that are in or close to buy areas include Apple, Microsoft, and Walmart.
Apple Stock Breaks Out
Apple stock attaches a handle to the cup base following a drastic collapse after the Covid-19 stock market crisis. The cup with handle displays a buying point of 288.35, according to MarketSmith chart review.
Thursday morning, Apple shares jumped over 1 percent, breaking out over buy-point. Apple earnings are not due until closure.
Wall Street saw EPS falling 7% to $2.28 as revenue falls 6% to $54.79bn. Apple removed its quarter outlook on Feb. 17 due to Covid-19 pandemic production and distribution disruptions.
The relative strength line of the stock is still close to new heights, a positive indicator. The RS line tests the efficiency of the stock price performance vs. the general market.
According to the IBD Stock Checkup, Apple’s stock is 93 out of the highest possible 99 IBD Composite Rating, putting it at the top of the growth stocks. The Composite Rating is a mix of core fundamental and technical measures to help investors quickly gauge the strengths of the stock.
Dow Jones stock leader Microsoft posted solid earnings late Wednesday, triggering Thursday’s morning trading 1-percent gain.
According to the MarketSmith chart review, Microsoft stock is priced over a 175.10 purchase point following a double bottom on April 16. From another angle, the stock is attempting to break out of the 180.10 buy-point of the cup-with-handle, and that’s another possible entry to note.
Microsoft is an IBD Long-Term Leader and an IBD Leaderboard stock idea.
Bullishly, the RS line has reached a new high in recent weeks, suggesting good relative results. Stocks with solid RS lines across times of stock market turmoil may be future winners of new uptrends.
Shares slip from the current stock market rally’s recent peak following a sharp recovery. Thursday, Walmart stock dropped 1%, bringing a losing streak to four sessions.
On March 9, the IBD Stock Of The Day included Walmart.
Tip: Before making any investment decisions, make sure to review current market trends and use IBD Stock Checkup to see whether your stock has passed the test when it comes to the most relevant fundamental and technical scores. For continuous chart review and signals to buy and sell, search MarketSmith, Leaderboard, and SwingTrader’s special features, stock lists, and graph annotations.