The “Santa Claus rally” looks to be in full effect this week.
The Dow Jones Industrial Average has bounded back to the upper end of its three-month trading range, on the upper end, by the 18,000 level that was first closed above back on Christmas Eve 2014 but hasn’t been exceeded since July.
Thanks to the performance of a handful of Dow Jones components, the bulls are making another run at this psychologically important benchmark. Seasonal tailwinds are helping: According to the folks at the Stock Trader’s Almanac, stocks tend to rise an average of 1.4% during the last five trading days of the year and the first two of the New Year.
Right now, four Dow Jones stocks are leading the charge higher.
In no particular order …
Dow Jones Dynamos: General Electric Company (GE)
General Electric (GE) stock is lifting up and out of a two-day month trading range helped in part by a price target hike by Argus.
Analysts are looking for a rise in earnings per share based on restructuring efforts, the acquisition of Alstom and share repurchases as the company shifts from a revenue growth to cost containment strategy.
GE will next report results on Jan. 22 before the bell. Analysts are looking for earnings of 50 cents per share on revenues of $36.08 billion.
Dow Jones Dynamos: Intel Corporation (INTC)
Intel (INTC) shares are breaking up and out of a trading range going back to October as investors cheer the completion of the $17 billion acquisition of Altera and reports from company executives that further buyouts will follow.
The company will report results on Jan. 14 after the close. Analysts are looking for earnings of 63 cents per share on revenues of $14.8 billion.
Dow Jones Dynamos: McDonald’s Corporation (MCD)
McDonald’s (MCD) stock is building on a powerful uptrend that started in August, building on the success of its all-day breakfast initiative. The Wall Street Journal recently cited a study from market research firm NPD Group finding the availability of Egg McMuffins and other items around the clock are driving new customer visits.
McDonald’s will report results on Jan. 25 before the bell. Analysts are looking for earnings of $1.23 per share on revenues of $6.22 billion.
Dow Jones Dynamos: Microsoft Corporation (MSFT)
Microsoft (MSFT) stock is going vertical, breaking up and out of a steady three-month uptrend. Excitement is building for new-tech initiatives heading into the CES 2016 show in Las Vegas, with lots of buzz on virtual reality and augmented reality consumer headsets, which MSFT is pursuing with its Hololens device.
MSFT will report results on Jan. 28 after the close. Analysts are looking for earnings of 71 cents per share on revenues of $25.23 billion.
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.
