Dow 30 Stock Roundup: Boeing Wins $8.8B Order From Jet Airways, GE Sells Health IT To Veritas For $1.05B

The Dow rebounded strongly this week after trade war fears receded and tech stocks staged a recovery. Markets declined on Monday after uncertainty over a prospective trade war weighed on investor sentiment. However, the Dow registered strong gains over the next three trading days, registering its first three-session stretch of gains since Feb 26.

Last Week’s Performance

The Dow increased 1.1% last Thursday, driven by a rebound in tech majors. Intel Inc. (NASDAQ:INTC) gained the most, increasing 5%. Shares of Facebook Inc. (NASDAQ:FB) , Apple Inc. (NASDAQ:AAPL) , Netflix Inc. (NASDAQ:NFLX) , Alphabet Inc. (NASDAQ:GOOGL) and Amazon.com Inc. (NASDAQ:AMZN) gained 4.4%, 0.8%, 3.4%, 3.2% and 1.1%, respectively.

Microsoft Corp. (NASDAQ:MSFT) also gained 2.1% after the company established two separate engineering teams, one for experiences and devices and another for cloud and AI platforms.

The index gained 2.7% over last week. Markets staged a powerful rebound on last Monday as tensions of an ensuing trade war between the United States and China appeared to ease. However, on last Tuesday markets declined sharply due to the tech tumble.

Additionally, the index decreased 3.5% during the month of March. The decline was primarily attributable to President Trump’s decision to impose $60 billion of tariffs Chinese imports, giving rise to fears of an ensuing trade war. The Dow also lost 2.3% in the first quarter of 2018.

The Dow This Week

The index declined 1.9% on Monday due to uncertainty about a global trade war. Technology and Internet stocks continue to suffer following President Trump’s renewed attack on Amazon. Monday’s broad-based market selloff was the worst start to April since the Great Depression of 1929.

All 30 components of the blue-chip index closed below their 50-day moving average. The major loser for the blue-chip index was Intel which plunged 6.1% following a Bloomberg report that Apple would use its own chips for Mac computers instead of Intel’s chips.

The index gained 1.7% on Tuesday led by a partial turnaround in technology stocks. Amazon gained 1.5% following a Bloomberg report, citing sources that the government is not planning to impose any regulations on the company.

Although the recovery was broad-based, investors’ anxiety over an impending trade war and imposition of new regulations on technology and Internet stocks persisted.

The index gained 1% on Wednesday with 27 of its 30 components closing in the green. Markets opened sharply lower yesterday on trade war related concerns. However, they recovered subsequently to a great extent after the White House gave indication that the U.S. government doesn’t want to enter into a trade war with China.

The blue-chip index rebounded from 510 points or 2.1% plunge to finish the session up about 231 points. Consequently, Dow registered its best single-session comeback since, Feb 6, when the blue-chip slipped 2.3% to end up 2.3%.

The index gained 1% on Thursday, finishing in the green on the third consecutive day for the first time since Feb 26. Fears of an impending trade war seemed to ebb. A semblance of stability seemed to have returned to proceedings since Wednesday’s notable turnaround.

The Dow added more than 200 stocks with The Boeing Company (NYSE:BA) and DowDuPont Inc. (NYSE:D) emerging as its best performers, adding 2.7% and 2.8%, respectively. Overall, tech stocks were the leading gainers for the day with Facebook, Netflix and Amazon increasing 2.7%, 1.7% and 2.9%, respectively.

Components Moving the Index

Boeing recently entered into an agreement with the second largest Indian-based airline — Jet Airways — for delivering 75 737 MAX narrow body aircrafts, per Reuters. The deal is in line with Indian airlines’ latest rush to expand their fleets to meet the rising demand in the country for both domestic and international flights.

The deal value amounts to approximately $8.8 billion at current list prices which might get lower once the deal finalizes, as airlines typically receive a significant discount on big orders from manufacturers.

However, it is still unknown whether the agreement was a formal order or a non-binding memorandum of understanding. The stock has a Zacks Rank #2 (Buy). You can see Zacks Investment Research

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Written By: Zacks Investment Research