U.S. equities are pushing to fresh record highs Wednesday as investors react to the chatter of a looming release of tax-reform legislation detail, as well as ongoing excitement over the new iPhone X from Apple Inc. (NASDAQ:AAPL).
The push to new highs flies in the face of the seasonal weakness investors are normally hit with in September. But these are far from ordinary times.
Central banks in Europe and Japan have been aggressively pushing monetary policy stimulus into their capital markets, even as the Federal Reserve prepares “quantitative tightening” later this month.
The action is being led by a number of “hard metal” stocks — those tied to hard, physical assets — in contrast to the obsession with the Big Tech “FANG” names a few months ago.
Here are three such Dow Jones components on the move:
Dow Jones Stocks to Buy: Boeing (BA)
Boeing Co (NYSE:BA) shares look ready to emerge from a tight three-month trading range, extending the already very impressive year-to-date gain of nearly 60%.
The stock has benefited from the intense investor interest in the aerospace/defense space amid ongoing tensions with North Korea and President Trump’s proclamations that the military needs to be rebuilt.
BP stock has benefited from the intense investor interest in the aerospace/defense space amid ongoing tensions with North Korea and President Donald Trump’s proclamations that the military needs to be rebuilt.
Dow Jones Stocks to Buy: Caterpillar (CAT)
Caterpillar Inc. (NYSE:CAT) is testing above the $120 level for the first time, up nearly 130% from the lows set in early 2016.
The uptrend has been relentless, not even touching the 50-week moving average since June 2016. The 50-day moving average was last touched in July and crossed back in April. Investors are responding positively to the outcome of the company’s investor day on Tuesday, with management saying the company has emerged stronger from its longest downturn in history.
The company will next report results on Oct. 24 before the bell.
Analysts are looking for earnings of $1.23 per share on revenues of $10.7 billion. When the company last reported on July 25, earnings of $1.49 beat estimates by 23 cents on a 9.6% rise in revenue.
Dow Jones Stocks to Buy: Home Depot (HD)
Home Depot Inc (NYSE:HD) shares are pushing above the $160 level for the first time on Wednesday, up more than 10% from the low hit in July and roughly 40% from the pre-election low in November.
Shares have surged higher this month on an anticipated increase in sales in Texas and Florida related to the rebuilding after Hurricane Harvey and Hurricane Irma.
The company will next report results on Nov. 14 before the bell. Analysts are looking for earnings of $1.80 per share on revenues of $24.4 billion. When the company last reported on Aug. 15, earnings of $2.25 beat estimates by three cents on a 6.2% jump in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
