Stock Market

Dow Jones Forecast

Dow Forecast DJIA

Should you buy Dow Jones 30 stocks?  Mega caps and industrials have done well with the DOW hitting new heights, yet interest rate worries, employment and supply issues are plaguing the DJIA and sending the stock market lower.

Today, the Dow took a tumble on Covid variant, recovery worries, job losses. As the day progresses the losses are being pared. Take a look at some of the best performing Dow Jones stocks and those that are losing and probably stocks you shouldn’t buy.

Now in mid July, the Dow Jones Industrial Average had hit its all time highs nearing 25,000.  As the pandemic recedes, the global economy returns, and retail spending grows this summer we’ll see the blue chip value stocks below begin to dominate the stock market.

The full recovery seems a long way away, but now is the time to research sectors and individuals stocks to buy.  Although this week’s news is mostly dour, there are good signals including Biden’s activity to stop monopolies from gauging consumers. That trend could renew competition and help small business surge as US fed spending increases.

Dow Jones stocks are generally stable, low risk, high value assets based on industry, and these are the darlings of many long term investors.  Investing Cap reports that the Dow has moved above the 25-day and 50-day moving average while the momentum indicator has continued rising. Review the top gainer Dow Stocks listed below.

dow jones this week. Screenshot courtesy of Google Finance

Best Stocks on the Dow Jones to Buy

Buy recommendations for the DOW: Investors.com believes Apple (AAPL), Boeing (BA), Disney (DIS), Goldman Sachs (GS) and Microsoft (MSFT) are the clear winning stocks. Apple is head scratcher given the chip shortage.  They were also following Caterpillar (CAT).  Some say not to buy yet, but why wait for the prices to rise?  As summer returns, won’t Visa, Coca Cola, The Traveler’s Companies, American Express, Chevron and Nike make good sense?

Financials including Goldman Sachs, American Express, and JP Morgan have excelled this year.

Top Dow Stocks. Screenshot courtesy of Barchart.com

Top Losers This Month

top losing dow jones stocks. Screenshot courtesy of Barchart.com

Dow Jones IA Forecast to 2022

So why then, has the DJIA soared during a shutdown pandemic economy? The S&P and NASDAQ have had rising but bumpy ride lately, and the Russell Index is in a class by itself now. See more on the Russell 2000 forecast.

DJIA Forecast. Screenshot courtesy of Trading Economics.

Most experts suggest the Dow Jones is at its peak right now but as we saw this week, a trend to value stocks is on.  The DOW 30 might be the group that excels through 2021 and 2022.   See the price outlook for Google, Apple, Amazon, and Facebook.

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Forecast for Next Month and Next 6 Months

The DOW Jones forecast for the next 6 months still looks good.  The recovery is underway and consumer spending is expected to continue from now till December.  Given the big drop on June 17/18th, right now may be a good time to buy the dip.  The DOW might be the best part of the stock market outlook overall.  Commodity prices are rising which is a headwind, however International economies have not revived as yet. As the pandemic eases over the next year internationally, it will only feed the DOW listed companies even further.

This month it is industrial stocks that are driving the markets, and APPL is one of those stocks. Apple is facing some stiff monopoly charges but it’s sales still float the stock.

Forecasts.org believes the Dow Jones will fall to about the 30500 within 6 months (October 2021).

Dow Jones Forecast. Screenshot courtesy of Forecasts.org.

What Factors Drive the DJIA Price?

As a weighted index of only 30 stocks, some might question whether the DJIA is a relevant index.

Dow Jones 30 Stocks include Apple, Pfizer, Walmart, Johnson & Johnson, Walt Disney, Nike among other huge corporations. Calling them industrials is a little misleading. Transportation and utilities stocks are not included in the DJIA and instead are in the Dow Jones Transportation Average (DJTA).

Whereas the Dow Jones average is a measure of the biggest companies, the S&P 500 index is more about the stock prices of big, but healthy companies — those with high market cap above $8.2 billion and a public float of 50%, and which have had positive earnings for the last 4 quarters. The S&P has 500 stocks which makes it a more reliable reflection of the stock market.

The Russell Index in contrast is a measure of 2000 small cap stocks. It provides a look at performance of small business in America.

Predictions for Dow 30?

The 30 DJIA stocks by themselves offer a very skewed perspective of US stock markets and the economy as a whole.  See the 2021 stock market forecast for more perspective. In fact, many of these companies operate globally, and are therefore outside the real US economy, deeply affected by International trade deals.

As the global trade channels slowly awaken, it’s predictable that the large cap Dow 30 stocks are going to be investor favorites. Keep your eye on the best performing DOW stocks above. Perhaps slower growth than other hot tech stocks, consumer discretionaries, and oil stocks, but likely far safer. The possibility of a stock market crash is slim for the next few years, but it is something to encourage you to hedge against.

Here are the Current 30 DJIA Stocks:

  1. 3M (NYSE:MMM)
  2. American Express (NYSE:AXP)
  3. Apple (NASDAQ:AAPL)
  4. Boeing (NYSE:BA)
  5. Caterpillar (NYSE:CAT)
  6. Chevron (NYSE:CVX)
  7. Cisco (NASDAQ:CSCO)
  8. Coca-Cola (NYSE:KO)
  9. The Walt Disney Company (NYSE:DIS)
  10. Dow DuPont (NYSE:DWDP)
  11. ExxonMobil (NYSE:XOM)
  12. General Electric (NYSE:GE)
  13. Goldman Sachs (NYSE:GS)
  14. The Home Depot (NYSE:HD)
  15. IBM (NYSE:IBM)
  16. Intel (NASDAQ:INTC)
  17. Johnson & Johnson (NYSE:JNJ)
  18. JPMorgan Chase (NYSE:JPM)
  19. McDonalds (NYSE:MCD)
  20. Merck (NYSE:MRK)
  21. Microsoft (NASDAQ:MSFT)
  22. Nike (NYSE:NKE)
  23. Pfizer (NYSE:PFE)
  24. Procter & Gamble (NYSE:PG)
  25. Travelers Companies (NYSE:TRV)
  26. United Technologies (NYSE:UTX)
  27. UnitedHealth (NYSE:UNH)
  28. Verizon (NYSE:VZ)
  29. Visa (NYSE:V)
  30. Wal-Mart (NYSE:WMT)

Forecast.com Dow Jones Forecast to 2022

Longforecast.com’s adjusted outlook to 2022 sees the Dow Reaching 34000 over the next 2 years.

Screenshot courtesy of Longforecast.com

Dow Jones volatility is mimics the same path the prices and forecasts for the S&P or the NASDAQ. DJIA are all about political power and the primacy of the monopolies. Within Free Trade, the monopolies could do as they pleased and name their price. But the end of Free Trade and the enforcement of China tariffs has ended it.

The threat of data privacy legislation and punishment from Europe, Asia, and North American governments casts a shadow over Dow companies. Anti-monopoly action by the DOJ too threatens these big companies revenue picture.

Best Dow Jones Stock Picks This Year

So far this year, the 5 best performing Dow stocks were Microsoft (up 35%), Cisco (up 32%), Visa (up 31%), American Express (up 31%), and Disney (up 29%) according to Yahoo Finance.

Investors Place has these as the Best Dow Jones Stock to buy:

  1. Apple (NASDAQ:AAPL)
  2. Microsoft (NASDAQ:MSFT)
  3. Nike (NYSE:NKE)
  4. Walmart (NYSE:WMT)
  5. Johnson & Johnson (NYSE:JNJ)
  6. Procter & Gamble (NYSE:PG)
  7. Goldman Sachs (NYSE:GS)

Politics Determines DJIA Predictions

With respect to US industrials on the Dow, the high US dollar, widening trade deficit and ballooning debt means the downward projection curve in the chart above makes sense. Moving production and fulfillment channels is not an easy thing to do. It’s unlikely Biden will have any greater luck trying to bring jobs back to the US.  A sliding US dollar is the only hope, and rising interest rates would wipe out any hope of currency help.

Is it wise to invest in Dow Jones stocks? Likely not. It’s wiser to look at top performing US stocks on the S&P, or small caps on the Russell Index. The NASDAQ index as well holds stocks with better upside, given technology won’t fail even during a recession. Those companies using AI (artificial intelligence) should be of particular interest to you.

See more on the US stock more forecast as well as 3 or 6 month forecasts, and forecasts for tomorrow and next week, along with a look at 5G stocks to buy.  Also take a good look at oil stocks, and best recovery stocks, along with the best penny stocks to buy.  High performing investments will be much harder to come by this year and you’ll be wise to hire a talented, high performing investment advisor to pick some winners.

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