The Dow Jones Industrial Average rallied sharply in April, as the stock market snapped back from the coronavirus crash. Top Dow Jones stocks to watch in May are Apple (AAPL), Home Depot (HD), Intel (INTC), Johnson & Johnson (JNJ) and Microsoft (MSFT).
Apple and Microsoft offer new buy points amid ongoing breakout moves. Home Depot is also approaching a new alternate buy point amid its latest breakout move. Meanwhile, Intel is just above its newest buy point.
There are clear winners — and losers — through the first four months of 2020. The top three performing Dow Jones stocks year-to-date were Microsoft, Johnson & Johnson and Walmart (WMT) with gains of 13.6%, 2.9% and 2.3%, respectively.
The three biggest losers through April were Boeing (BA), Exxon Mobil (XOM) and Dow (DOW) with declines of 56.7%, 33.4% and 33%, respectively.
In 2020, the Dow Jones industrials slid more than 34% through the March 23 close. The tech-heavy Nasdaq composite fell 23.5%, while the S&P 500 declined 30.7% through the March 23 close. After a sharp rally in April — the Dow 30 gained more than 11% for the month— the Dow Jones Industrial Average is down 14.7% in 2020. Meanwhile, the S&P 500 is down 9.9% and the Nasdaq is down just 0.9% through the April 30 close.
What Is The Dow Jones Industrial Average?
Founded in 1896 with 12 stocks, the Dow Jones Industrial Average is one of the oldest stock market indexes. There are 30 Dow Jones stocks designed to serve as a bellwether for the general U.S. stock market. Other major stock indexes include the technology-heavy Nasdaq composite and the S&P 500 index — an index of the 500 largest companies in the United States.
Dow Jones Stocks To Watch
Amid the current coronavirus stock market rally — according to the IBD Big Picture — investors should be focusing on the stocks that are setting up and breaking out. These stocks will have strong relative strength lines, and could be some of the new uptrend’s stock market leaders.
Potential Dow Jones stocks to buy and watch in May that are in or near buy zones include tech giants Apple, Intel and Microsoft.
Apple Stock
Apple stock broke out on April 30 past a cup with handle’s 288.35 buy point, according to MarketSmith chart analysis and is out of the 5% buy range. The 5% buy zone runs up to 302.77. Apple shares are approaching a new buy point at 319.79. The stock gained 0.6% on Friday to close at 318.89. Look for another breakout in strong volume to add to an existing position.
Apple stock is just 3% off its all-time high, nearly completing a stunning recovery from the coronavirus stock market crash.
Late April 30, Apple reported strong quarterly results. The stock’s relative strength line is at new highs, a bullish signal. The RS line measures a stock’s price performance vs. the general market.
According to the IBD Stock Checkup, Apple stock has a 93 out of a highest-possible 99 IBD Composite Rating, placing it in the upper tier of growth stocks. The Composite Rating is a blend of key fundamental and technical metrics to help investors easily gauge a stock’s strengths.
Home Depot Stock
Home Depot stock added a handle to a deep cup base, offering a new buy point at 224.32. The new handle only appears on the daily chart, according to MarketSmith, so a buy point at 247.46 is also in play. Shares tried to break out past that alternate entry on May 18, but was turned away.
Home Depot shares gained 0.4% Friday.
Intel Is Dow Jones Stock Leader
Chip leader Intel broke out above a new buy point in a cup with handle on Wednesday. The formation shows a new entry at 62.23. The 5% buy zone runs up to 65.34. Intel shares rallied 0.4% Friday to retake the buy point.
Per the IBD Stock Checkup, Intel stock has a best-possible 99 IBD Composite Rating, placing it in the top echelon of growth stocks. The Composite Rating is a blend of key fundamental and technical metrics to help investors easily gauge a stock’s strengths.
Johnson & Johnson Stock
On April 23, Johnson & Johnson cleared a 154.60 buy point in a cup base. Amid recent losses, shares are nearly 7% below the buy point. Shares slid 1.6% Friday. Investors should cut their losses when a stock falls more than 7% below the buy point.
On April 14, the company reported better-than-expected Q1 results, but trimmed its full-year outlook. The first quarter featured strong pharmaceutical and consumer health sales, but revenue from medical devices tumbled as patients put off procedures amid the Covid-19 pandemic.
Microsoft Stock
Dow Jones stock leader Microsoft is back above its cup-with-handle’s 180.10 buy point. Shares inched higher Friday and are approaching a new buy point at 187.61 amid a slow-going breakout.
Shares also broke out on April 16 above a 175.10 correct buy point in a double bottom, according to MarketSmith chart analysis.
Microsoft is an IBD Leaderboard stock idea and an IBD Long-Term Leader.
Bullishly, the RS line hit a new high in recent weeks, indicating strong relative performance.
This article was originally published on finance.yahoo.com/news/.
