Dow 30 Stock Roundup: AAPL Refreshes Product Lineup, BA Wins $327M Navy Order

The index traversed yet another volatile week but still managed to notch up strong gains. The Federal Reserve hinted that it was unlikely to announce any rate hike this year, following signs of economic weakness. But investors remained concerned over the lack of clarity on the status of trade talks. Sharp movements from shares of Apple (NASDAQ:AAPL) and Boeing (NYSE:BA) largely determined the direction of the index.

Last Week’s Performance

The index gained 0.5% last Friday as optimism around a U.S.-China trade deal boosted investor sentiment. Further, China’s pledge to counter its economic woes also boosted indices. Gains for the 30-stock index were buoyed by a 1.5% surge in the shares of Boeing after reports surfaced that the aerospace giant was planning to initiate a software upgrade for its 737 Max model.

The index increased 1.6% over last week. This was the Dow’s best weekly gain since Feb 15. Meanwhile, the UK parliament voted against a no-deal Brexit and President Donald Trump said that he was ready to give more time for a trade deal with China.

In other news, Fed chair Jerome Powell remained bullish about the U.S. economy. On Mar 10, in an interview with “60 Minutes”, Fed chairman Jerome Powell said that the U.S. economy will continue to grow in 2019 albeit at a slower pace.

However, investors remained anxious about the delay in sealing a U.S.-China trade deal. Moreover, weak earnings data from the United States and China also dented investors’ confidence.

The Dow This Week

The index increased 0.5% on Monday ahead of the Federal Reserve’s two-day policy meeting. The Dow registered its fourth consecutive close in the green. Meanwhile, federal prosecutors began scrutinizing the development of Boeing’s MAX 737 jetliner.

The Dow also posted its best close since Mar 1. Gains for the 30-stock index were buoyed by a 1% rise in the shares of Apple. However, gains for the index were capped by steep losses for Boeing.

The index lost 0.1% on Tuesday after reports surfaced that trade talks between the United States and China had hit a rough patch. Following this, the three major benchmarks pared early gains. Shares of Apple declined 0.9% and were the biggest drag on the 30-stock index.

The index lost 0.6% on Wednesday following a decline in bank stocks after the Fed indicated that further rate hikes in 2019 were largely unlikely. Following the central bank’s statement, yields on various government bonds took a nosedive. Moreover, conflicting news from the trade war front also dampened investors’ spirits.

The index gained 0.8% on Thursday, enjoying its best daily gain since Feb 15. Stocks were propelled higher after the Fed hinted earlier this week that it was unlikely to raise rates this year. Gains for the index were powered by shares of Apple which gained 3.7% after being upgraded by Needham.

Components Moving the Index

Apple updated its iPad and iMac devices, prior to the much-anticipated Mar 25 event, where the iPhone-maker is set to launch video streaming and news subscription services.

The new ultra-thin iPad Air measures 10.5 inches diagonally and is supported by Apple Pencil. Moreover, iPad Air performance is expected to be 70% better, due to the A12 Bionic chip and Apple’s Neural Engine.

Zacks Rank #3 (Hold) Apple also launched the new 7.9-inch iPad mini that delivers “three times the performance and nine times faster graphics.” The device is 25% brighter and has the highest pixel density among any of the iPads, powered by the advanced Retina display with True Tone technology.

The new iMac features Intel’s (NASDAQ:INTC) 8-core 9th-generation processors and Radeon Pro Vega graphics from Advanced Micro Devices (NASDAQ:AMD) . (Read: Zacks Investment Research

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Written By: Zacks Investment Research