U.S. equities are continuing their upward push on Wednesday, as the bulls appear to be impervious to exhaustion and fatigue. September and October are supposed to be two of the most harrowing months of the year. Yet we’re in the midst of one of the most lightly traded, most drama-free “creeper” uptrends in history.
The moves out of the August lows, fueled by hopes for President Trump’s tax reform plans, have been impressive for a number of Dow Jones Industrial Average components.
It’s an open question if the uptrend will survive a number of catalyst headwinds on the horizon, including the start of the third-quarter earnings season and approach of a possible Federal Reserve interest rate hike in December.
With all that said, here are five Dow components that best represent the market’s recent meltup.
Dow Jones Stocks to Buy Today: American Express (AXP)
American Express Company (NYSE:AXP) shares rose more than 10% from its August low into the high set this morning, pushing up and over resistance from its 2014 and 2015 highs.
This represents more than a doubling from the lows hit in February 2016 in the wake of the loss of the company’s exclusive relationship with Costco Wholesale Corporation (NASDAQ:COST). Analysts at Wells Fargo resumed coverage on the stock with an Outperform rating on Wednesday, which boosted sentiment further.
The company will next report results on Oct. 18 after the bell. Analysts are looking for earnings of $1.48 per share on revenues of $8.3 billion. When the company last reported on July 19, earnings of $1.47 beat estimates by three cents on a 0.9% rise in revenues.
Dow Jones Stocks to Buy Today: Caterpillar (CAT)
Caterpillar Inc. (NYSE:CAT) shares have been in an unbroken uptrend in March, rising more than 40% on expectations of a rebound in global growth, revival in the mining sector, and a bounce back in U.S. energy production activity.
The stock enjoyed a lift from analysts at Goldman, who increased their price target to $158 — a new Street high.
The company will next report results on Oct. 24 before the bell. Analysts are looking for earnings of $1.26 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 revenues.
Dow Jones Stocks to Buy Today: Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE:JNJ) shares are lifting up and out of a multi-month consolidation on Wednesday, pushing above the $136-a-share level. Investors have grown comfortable with the uptrend, with the last harrowing pullback a touch of the 50-week moving average in February.
Shares have since added nearly 25%. The stock was recently upgraded by analysts at Jefferies.
The company will next report results on Oct. 17 before the bell. Analysts are looking for earnings of $1.80 per share on revenues of $19.3 billion. When the company last reported on July 18, earnings of $1.83 beat estimates by four cents on a 1.9% rise in revenues.
Dow Jones Stocks to Buy Today: McDonald’s (MCD)
McDonald’s Corporation (NYSE:MCD) shares are pushing up and over two-month resistance, putting an end to a multi-month stall near the $160-a-share level. The company has been revving up its innovation, from custom ordering kiosks to new menu items.
Telsey Advisory Group in a note to clients said management is looking to recapture the 500 million transactions the company lost in recent years to competitors.
The company will next report results on Oct. 24 before the bell. Analysts are looking for earnings of $1.76 per share on revenues of $5.7 billion. When the company last reported on July 25, earnings of $1.73 beat estimates by 11 cents despite a 3.4% decline in revenues.
Dow Jones Stocks to Buy Today: Wal-Mart (WMT)
Wal-Mart Stores Inc (NYSE:WMT) shares are blasting up and out of a six-month consolidation range, jumping past the 2014/2015 highs near $84, after the company aggressively talked up its e-commerce growth forecasts and unveiled a new $20 billion share buyback program.
The company is looking to take the fight to Amazon.com, Inc. (NASDAQ:AMZN) as it integrates its recent multi-billion purchase of Jet.com and rolls out new upmarket branded products including the upcoming “Uniquely J” label.
The company will next report results on Nov. 16 before the bell. Analysts are looking for earnings of 97 cents per share on revenues of $120.3 billion. When the company last reported on Aug. 17, earnings of $1.08 per share beat estimates by a penny on a 2.1% rise in revenues.