Dow 30 Stock Roundup: Apple, GE, DuPont Beat, Boeing Posts Narrower-than-Expected Loss
Zacks Investment Research | Jul 28, 2016 11:43PM ET
The Dow slipped over an earnings heavy week, where results took precedence over other developments. Despite other benchmarks making some gains, the blue-chip index took losses because of two reasons. First, key components declined following disappointing earnings results. Secondly, oil prices slumped following data which indicated that inventories had increased for two successive weeks. These events overshadowed record gains by the iconic iPhone maker following strong earnings results.
Last Week’s Performance
The index increased 0.3% last Friday following strong gains from telecom giants Verizon Communications Inc. (NYSE:VZ) and AT&T (NYSE:T) and better-than-expected private domestic manufacturing data. Although some of Friday’s gains were curtailed by declines in industrial companies such as General Electric Company (NYSE:GE) , all the key U.S. indexes posted gains.
While AT&T’s and GE’s movements were due to encouraging and under par earnings, respectively, shares of Verizon gained following news that it has emerged as the front-runner to acquire the core internet business of Yahoo! Inc. (NASDAQ:YHOO) . Meanwhile, Markit’s U.S. manufacturing purchasing manager index (PMI) came in at 52.9 in July, reaching its best settlement since last October.
The Dow also gained 0.3% over last week. Technology was the biggest advancer among the S&P 500’s sectors, following upbeat earnings results of two Dow components. Even the broader markets were pushed upward following a flurry of encouraging earnings results. Moreover, economic data including housing data was also favorable.
The Dow This Week
The index lost 0.4% on Monday after crude supply worries heightened, resulting in a sharp decline in oil prices. Moreover, investors took a cautious stance ahead of Fed’s two-day policy meeting and a flood of quarterly earnings reports.
Oil prices slumped, following concerns over crude oversupply. Reports showed that crude inventories in the delivery hub of Cushing, Oklahoma have increased by 1.1 million barrels for the week ended July 22. Moreover, investors maintained a cautious approach ahead of the Fed’s two-day policy meeting.
The Dow declined again on Tuesday, losing 0.1% following a flurry of earnings results. McDonald’s Corporation (NYSE:MCD) suffered its worst one-day percentage decline in seven sessions, which in turn weighed on the Dow. 3M Co’s (NYSE:MMM) shares fell after reporting weaker-than-expected second-quarter earnings results
However, Caterpillar Inc. (NYSE:T) and United Technologies (NYSE:UTX) Corporation (NYSE:T) registered gains following better-than-expected earnings results. New home sales advanced, reaching their highest settlement since Feb 2008.
The index moved marginally lower on Wednesday following the Federal Open Market Committee’s policy statement and key earnings results. The Fed kept key rates unchanged as expected, but hinted at a rate hike as early as September. Moreover, declines in The Coca-Cola Company’s (NYSE:KO) shares following its revenue miss weighed on the S&P 500 and Dow.
However, Apple Inc. (NASDAQ:AAPL) registered its best percentage gains in more than two years, on the back of better-than-expected earnings results. This in turn curbed some of the losses in the Dow. Shares of Boeing Company (NYSE:BA) also increased following encouraging earnings results. Durable orders fell 4% in June while the EIA reported that U.S. commercial crude oil inventories rose for the week ended July 22.
The index moved 0.1% lower on Thursday, after a fall in oil prices weighed on some of its components like Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) . Reports showed that crude inventories in the delivery hub of Cushing, Oklahoma have increased by 328,000 barrels for the week ended July 26.
Also, shares of Royal Dutch Shell (LON:RDSa) plc Zacks Investment Research
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