After significant hype from the mainstream media, Special Counsel Robert Mueller seemingly appeared on the verge of delivering an indictment on President Donald Trump. Instead, Mueller’s report found no evidence tying Trump with Russian conspirators. That news disappointed many on the left, while simultaneously lifting prospects for Dow Jones Industrial Average and its component stocks.
Although the Russia investigation, which has long dogged the Trump administration, has no direct impact on the markets, the latest news frees them from unnecessary shackles. With the president now able to concentrate on important matters, he can theoretically resume making America great again.
This has positive implications for thorny issues like the U.S.-China trade war. If the White House achieves a breakthrough, we could see several Dow Jones stocks on the rise move even higher. With China harnessing the world’s second-biggest economy, Wall Street will appreciate any hint of progress.
In addition, Mueller tacitly signed off on two more years of Trump. Again, the majority of Americans probably felt like they got punched in the gut. Still, we do have one bit of universal good news: we know exactly what to expect until November 2020.
From a political standpoint, this is huge. Barring unusual circumstances, Trump’s contentious policies such as tax or healthcare reform won’t be immediately reversed. This continuity is great for the markets as it represents one less variable.
So with that in mind, here are five Dow Jones stocks to track on your radar:
JPMorgan Chase (JPM)
Earlier this year, banking giant JPMorgan Chase (NYSE:JPM) was one of the Dow Jones stocks on the rise. However, that quickly changed this month. Since mid-March, JPM stock has dropped more than 6%. Geopolitical concerns such as icy U.S.-China relations, as well as possible trading-revenue declines have hurt prospects.
But despite the troubles, JPM stock has a genuine chance of a Mueller-fueled rally. For one thing, JPMorgan is an economic bellwether: what’s good for the nation is usually good for its share price. Moreover, as a banking firm, JPM receives the most benefit from a stable platform.
As I alluded to earlier, it’s probably not the kind of stability most people sought. Nevertheless, we generally know what to expect: strange tweets, conservative policies, and the constant push to build the wall. This predictability will at least make it easier for management to chart a path forward.
Most technology firms took a beating in the final quarter of last year, but not Intel (NASDAQ:INTC).
No, INTC stock absorbed most of its pain earlier in 2018. Although usually a safe bet, Intel faced many questions regarding production delays over its next-generation chips. Amid fierce competition, many stakeholders simply gave up.
Further compounding the issue, the U.S.-China trade war acted as a massive headwind. As our own Dana Blankenhorn noted last year, Intel invested substantially in Chinese infrastructure. Any hit to that region will eventually translate to volatility in INTC stock.
But this year, Intel is one of the top Dow Jones stocks on the move. Shares are already up 17% since the January opener. And with Trump no longer dealing with the Mueller investigation, he has time to wheel and deal. Although not a guarantee, INTC suddenly looks like a much-healthier prospect.
If you’re looking for stocks on the rise in the Dow, you really can’t go wrong with Merck (NYSE:MRK). Although the company’s future is heavily tied to its cancer-fighting drug Keytruda, that hasn’t stopped speculators. Indeed, if you bought MRK stock during last year’s doldrums, you’re living large right now.
Better yet, Merck continues to ride its wave of momentum. On a year-to-date basis, MRK stock crossed into double-digit territory. For bullish traders, they don’t find this status surprising. Merck maintains an enviable drug pipeline, which includes Januvia and Gardasil. Last year, they rang up $3.7 billion and $3.2 billion in sales, respectively.
Plus, President Trump’s rants against former President Barack Obama’s healthcare policies have previously shaken the Street. Now that the Mueller investigation is out of the way, Trump has less distractions. Hopefully, he’ll use this unshackling to promote positive changes for all Americans.
And if not, at least we know what we’re getting.
Home Depot (HD)
Out of all the Dow Jones stocks on the rise, my current favorite is Home Depot (NYSE:HD). Admittedly, HD stock is a bit of a cop-out. As a largely secular company — a leaking pipe doesn’t stop based on economic conditions — HD is an “everyman” investment. No matter what, you can count on it.
But that doesn’t mean that Home Depot is immune to good news. Again, while most Americans may have been disappointed with the build-up to the Mueller non-announcement, it’s a positive for HD. Primarily, shares do well with a robust housing market. If Trump were indicted, that would create all kinds of havoc on our economy.
At the same time, I like the fact that HD stock is a boring investment. Ultimately, it’s very difficult to tell how the Street will respond to the Mueller investigation results. Therefore, sitting on HD and collecting its 2.9% dividend yield isn’t a bad approach!
If you want some spice out of your Dow Jones stocks, Boeing (NYSE:BA) is it. Already under pressure from the Lion Air Flight 610 crash that killed all onboard, Boeing suffered another devastating blow: Ethiopian Airlines Flight 302 also went down under similar circumstances. Logically, BA stock tumbled badly in response.
Moreover, the pain is far from over. By the looks of it, Boeing will incur significant legal costs. In both crashes, the same airplane — the 737 Max 8 — was involved. Additionally, the company’s anti-stalling system called MCAS apparently malfunctioned on the doomed flights. If you’re heavily vested in BA stock, you may want to protect yourself.
But with a newly-energized President, Boeing could get its wings back. That’s because Trump is still Trump, and that means more saber-rattling. Such circumstances would lift the company’s military and defense divisions, an obvious welcome change.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.