Dow 30 Stock Roundup: PFE's Herceptin Biosimilar Gets FDA Nod, VZ To Launch 5G Soon

The index enjoyed an encouraging week, buoyed by strong economic data. A revival in the fortune of tech stocks also boosted the broader markets. However, the lack of any clarity about the chances of a near-term U.S-China trade deal kept investors on tenterhooks. Boeing (NYSE:BA) emerged as the weakest link for the index, losing heavily this week after the crash of another 737 Max 8 aircraft.

Last Week’s Performance

The index lost 0.1% last Friday, declining for the fifth successive day for the first time since June 2018. Disappointing jobs data for February led to benchmarks closing lower. The U.S. economy added a mere 20,000 jobs in February, significantly below the consensus estimate of 186,000

Moreover, weak economic data from China and Germany also dented investors’ confidence. Exxon Mobil (NYSE:XOM) was the major loser for the index, with a loss of 1.4%.

The index declined 2.2% last week, suffering its biggest weekly decline for the year so far. Renewed concerns about global economic growth were the primary cause of Wall Street’s decline. The slowdown in Chinese growth outlook, ECB’s downward revision of the Eurozone’s growth rate and weak job data in the United States dented investors’ confidence.

The Dow This Week

The index gained 0.8% on Monday, reversing a five-day losing streak, supported by a strong show from the technology sector. Shares of Boeing plummeted 5.3% after an Ethiopian Airlines 737 Max 8 plane crashed shortly after taking off from Addis Ababa. However, shares of Apple (NASDAQ:AAPL) climbed 3.5% after Bank of America Merrill Lynch (NYSE:BAC) upgraded the stock to buy from neutral.

The index declined 0.4% on Tuesday following the release of tame inflation data, which offset the free fall of Boeing’s stock on safety issues. The Dow’s worst performer was Boeing, which declined 6.2%. Several countries such as the U.K., China, the 19-member Eurozone, Indonesia, Ethiopia and Australia grounded 737 MAX 8 planes, following two air crashes in five months.

The index increased 0.6% on Wednesday following the release of strong economic data. Meanwhile, the UK parliament voted against a no-deal Brexit and President Donald Trump said that he is ready to wait for a lasting trade deal to be concluded with China.

The index closed marginally higher on Thursday even as 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. However, stock price movements in either direction were largely marginal.

Components Moving the Index

Apple (NASDAQ:AAPL) has been accused of unfair practices and stifling competition in the music streaming space. Notably, the complaint has been filed by music streaming giant Spotify (NYSE:SPOT) with the European Commission's antitrust regulators.

Per Spotify CEO Daniel Ek, Zacks Rank #3 (Hold) Apple introduces “rules on the App Store that purposely limit choice and stifle innovation at the expense of the user experience.” To maintain its leading position in the music streaming space, Apple blocked Spotify and other players from providing services on Siri, Homepod and Apple Watch. Notably, this limits the choices offered to consumers.

Spotify and other digital service providers are also subjected to a 30% “Apple Tax” when consumers make purchases using Apple's in-app purchase system. Additionally, developers are also charged when customers upgrade from a free version to a premium music service. (Read: Zacks Investment Research

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Written By: Zacks Investment Research