The Dow Jones Industrial Average has been on an upward trend since its lows in late October, and there are no “new highs” like the Nasdaq 100. Among the 30 large-cap stocks that make up the Dow, there are four stocks that hit record highs. This is a big drag on the index this month.
Cisco Sytems, WalmartWMT, ChevronCVX, and Walgreens Boots AllianceWBA will be sold in November even as other companies create new 52 weeks. Each name has a reason, but it’s clear that the weakness is that the Dow as a whole has not kept up with the other major stock indexes.
The daily price chart for Cisco SystemsCSCO looks like this:
After the company missed quarterly profit and revenue expectations, Wall Street investment managers took the news badly and sold their shares. From a peak of $57.50 in early September to the current $48, this represents a 16.5% decline in less than three months.
The selling volume (reddish bar below the price chart) is huge and definitely confirms a new downtrend. You can see how the 50-day moving average (blue line) turned downward and how the 200-day moving average (red line) paused its upward path.
Here is Walmart’s daily price chart:
That wide gap narrowed in mid-November after the company’s chief financial officer cited “softening” in store sales in October and expected consumer spending to be weak for the rest of 2023. It was about. CFOCFO’s John Rainey told analysts that while customers are still buying groceries, they appear to be less interested in discretionary items.
The stock sold just above its rising 200-day moving average, managing to outpace its October decline, a sign of buying support below. The 50-day moving average had been on an upward trend since late March, but it is starting to reverse.
Here is Chevron’s daily price chart:
The drop in oil prices has affected major energy companies, including giants like Chevron. West Texas Intermediate crude oil was trading at $94 in late September and is now trading at $77. That’s good for people who fill up their gas at convenience stores, but this sector is less profitable.
Chevron has fallen from a September high of $170 and was trading at $144 after Thanksgiving. Those who bought stocks at high prices are now facing losses of 15% over three months. The 50-day moving average is below the 200-day moving average, indicating a bearish tone.
The daily price chart for Walgreens Boots Alliance looks like this:
Last year’s $180 million loss continues to impact the 9,000-store chain as management closes stores and cuts staff. JPMorgan analysts liked the change and upgraded the stock from “neutral” to “overweight” in October, increasing their price target from $27 to $30.
This is one of the worst-looking price charts in the Dow 30, with the stock trending inexorably downward from an April high of just over $34 to the current $21. Walgreens Boots Alliance has not been able to beat its 200-day moving average or its 50-day moving average.
For comparison, here is a daily price chart of the Dow Jones Industrial Average.
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