The Dow Jones Industrial Average is scrambling and clawing to new highs, exiting a two-year consolidation range as a combination of multiple Federal Reserve interest rate cuts and a thawing of U.S.-China trade relations bolsters sentiment. As a result, the Dow is arching towards the 28,000 level for the first time.
A number of major component stocks are participating in a big way. Here are four worth a look:
Apple (NASDAQ:AAPL) investors are cheering the solid reception to the iPhone 11 and its various derivatives, as well as the launch of the company’s Apple TV+ streaming service, amid an ongoing shift in focus from hardware to services as the main motivator of top-line growth.
Looking ahead, The Information is reporting that the company is aiming to release an augmented reality headset in 2022 and augmented reality glasses in 2023. Investors are being rewarded with a move to new all-time highs.
Walt Disney (DIS)
The launch of Disney’s (NYSE:DIS) Disney+ streaming service last night had good and bad elements. Bad in that that many weren’t able to access the shows and movies they wanted as the servers got overloaded. But good in that so many people were signing up to try the service, which has a relatively low cost compared to Netflix (NASDAQ:NFLX).
The company also reported better-than-expected results last week, with revenue up 34% thanks to the consolidation of Hulu.
Shares of Microsoft (NASDAQ:MSFT) are exiting a multi-month consolidation range going back to June, rising roughly 10% off of the low set in early October. The stock has been a steady eddy for years thanks to its rousing success in the cloud and ongoing dominance of the corporate IT software marketplace.
The company was also recently awarded a $10 billion cloud computing contract with the Pentagon. MSFT will next report results on Jan. 29 after the close. Analysts are looking for earnings of $1.27 per share on revenues of $35.7 billion.
United Technologies (UTX)
United Technologies (NYSE:UTX) shares are pushing up and over a two-year consolidation range, moving in on the $150-a-share level. The company is in the midst of executing on previously announced spinoffs of its non-core segments including Otis (elevators and escalators) and Carrier (HVAC).
The company has been on a roll lately, posting 10 consecutive quarters of earnings beats. It will next report on Jan. 21 before the bell. Analysts are looking for earnings of $1.84 per share on revenues of $19.3 billion.