Bargain hunters, pay attention.
With the Greek parliament signed off on the new bailout deal, Chinese authorities aggressively working to stabilize their stock markets and the meat of the second-quarter earnings season going well, blue-chip stocks are on the mend.
Whether this is the beginning of the end of the eight-month funk stocks have been in — with the Dow Jones Industrial Average near the 18,000 level first reached in December — or merely another flash in the pan remains to be seen. Technical indicators like market breadth haven’t strongly confirmed the bounce in the DJIA we’ve seen out of last week’s lows.
But if you’re an optimist, there are a number of mega-cap stocks rounding higher. Here are five Dow Jones stocks in particular that are worth a look.
Dow Jones Heavyweights on the Mend: Boeing (BA)
Click to Enlarge After weathering all the news on the U.S. Import-Export Bank, Boeing (BA) stock is on the move again breaking up and out of a downtrend channel going back to February.
Part of this is surely related to a string of government lawsuits against the major airlines that they have allegedly colluded to raise fares by limiting investments in capacity. If the charges are proven, airlines will have to start investing in new aircraft in what will be a boon for Boeing.
BA is set to report quarterly results on July 22. Back in April, it reported an earnings beat of $1.97 per share vs. the $1.81 analysts are expecting.
Dow Jones Heavyweights on the Mend: Home Depot (HD)
Click to Enlarge Shares of Home Depot (HD) are lifting out of a consolidation range going back to February.
An uptick in housing sales and household formation are positive catalysts for the stock as home prices overall look set for a re-acceleration to the upside. The company reaffirmed its fiscal 2016 guidance on Wednesday.
Analysts at TAG believe the home price gains in larger metropolitan markets will benefit HD in particular given its store distribution footprint.
Dow Jones Heavyweights on the Mend: IBM (IBM)
Click to Enlarge Shares of IBM (IBM) have been on the slide since peaking in early May but are now pushing up and over its 50-day moving average in what looks like a resumption of the uptrend started in January.
The company’s image got a boost earlier this month when the company announced it produced the industry’s first 7-nanometer semiconductor in partnership with GlobalFoundries and Samsung (SSNLF).
The company will report quarterly results on July 20.
Dow Jones Heavyweights on the Mend: JPMorgan Chase (JPM)
Click to EnlargeJPMorgan Chase (JPM) shares punched out to new highs on Thursday thanks to better-than-expected quarterly earnings and revenue for the second quarter — on solid loan growth and equity markets revenue.
The big banks have also been getting a lift on the anticipated increase to long-term interest rates heading into a possible policy liftoff from the Federal Reserve later this year. This would boost net interest margins and pad bank earnings.
Dow Jones Heavyweights on the Mend: Microsoft (MSFT)
Click to EnlargeMicrosoft (MSFT) shares have pushed above their 50-day moving average for the first time since April as anticipation for the release of Windows 10 builds.
UBS analysts, in a recent note to clients, highlighted the coming operating system as another important step in the company’s embrace of a new, more open strategy.
There also is excitement over the company’s efforts with the HoloLens augmented reality headset and wearables.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
