We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Dow Jones Industrial Average touched the milestone of 40,000 for the first time on strong corporate earnings and renewed bets for rate cuts. SPDR Dow Jones Industrial Average ETF (DIA - Free Report) , which tracks the Dow Jones Index, has gained 6.4% so far this year. While most of the stocks in the ETF portfolio have been rising this year, we have highlighted five that have been leading the way higher. These are American Express Company (AXP - Free Report) , Walmart Inc. (WMT - Free Report) , Amazon.com Inc. (AMZN - Free Report) , The Goldman Sachs Group Inc. (GS - Free Report) and Merck & Co. Inc. (MRK - Free Report) .
The blue-chip index has outperformed in recent months, with the broadening out of the stock market rally beyond the tech sector. Cyclical stocks, banks and small-cap stocks have all shown an upward trend in recent weeks, powering the blue-chip index. Bouts of stronger earnings and stronger guidance from many mega-cap stocks also propelled the index (read: ETFs to Bet on Dow Jones' Longest Winning Streak of 2024).
The reconstruction of the blue-chip index is also paying off. Amazon, which joined the index on Feb 26, provided a boost to the index after it reported blockbuster first-quarter 2024 results. The e-commerce giant beat both earnings and revenue estimates driven by growth in its advertising and AI-powered cloud computing units.
Inflation in the United States cooled down for the first time in six months, sparking new bets on Fed rate cuts as soon as September. Low rates are favorable for stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Lower rates typically reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets. According to the CME FedWatch Tool, around 70% of traders now expect at least one cut by the September meeting, a notable increase from a week ago.
DIA in Focus
SPDR Dow Jones Industrial Average ETF is one of the largest and most popular ETFs in the large-cap space, with AUM of $33.3 billion and an average daily volume of 3.7 million shares. It tracks the Dow Jones Industrial Average Index, holding 30 stocks in its basket, with each making up for less than 8.6% share. Financials (23.2%), information technology (18.8%), healthcare (18.5%), consumer discretionary (14.7%) and industrials (13.9%) are the top five sectors (read: ETFs to Make the Most of the Sector Rotation).
SPDR Dow Jones Industrial Average ETF charges 16 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Best-Performing Stocks of DIA
American Express is a diversified financial services company offering charge and credit payment card products and travel-related services worldwide. Shares of AXP have risen 28.8% so far this year. American Express earnings are expected to grow 15% this year. It makes up for 3.97% share in DIA portfolio. It has a Zacks Rank of 3 (Hold).
Walmart has evolved from being just a traditional brick-and-mortar retailer into an omnichannel player. It is engaged in the operation of retail, wholesale and other units worldwide. The stock has risen 21.8% this year. Walmart has an expected earnings growth rate of 4.3% for this year and has a Zacks Rank #3.
Amazon is one of the largest e-commerce providers. It has jumped nearly 21% this year and accounts for 3% in the fund’s basket. AMZN is expected to see earnings growth of 56.5% for this year and accounts for 3% of DIA portfolio. The stock has a Zacks Rank #3.
Goldman is a leading global financial holding company providing IB, securities, investment management and consumer banking services to a diversified client base. The stock has gained more than 20% so far this year and has an estimated earnings growth rate of 60.5% for this year. Goldman accounts for a 7.6% share in DIA’s portfolio and has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Merck operates as a healthcare company worldwide. It has gained more than 20% so far this year and accounts for 2.1% in the fund’s basket. Merck is expected to see earnings growth of 474.2% for this year and has a Zacks Rank #3.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Stocks Powering the Dow ETF Year to Date
The Dow Jones Industrial Average touched the milestone of 40,000 for the first time on strong corporate earnings and renewed bets for rate cuts. SPDR Dow Jones Industrial Average ETF (DIA - Free Report) , which tracks the Dow Jones Index, has gained 6.4% so far this year. While most of the stocks in the ETF portfolio have been rising this year, we have highlighted five that have been leading the way higher. These are American Express Company (AXP - Free Report) , Walmart Inc. (WMT - Free Report) , Amazon.com Inc. (AMZN - Free Report) , The Goldman Sachs Group Inc. (GS - Free Report) and Merck & Co. Inc. (MRK - Free Report) .
The blue-chip index has outperformed in recent months, with the broadening out of the stock market rally beyond the tech sector. Cyclical stocks, banks and small-cap stocks have all shown an upward trend in recent weeks, powering the blue-chip index. Bouts of stronger earnings and stronger guidance from many mega-cap stocks also propelled the index (read: ETFs to Bet on Dow Jones' Longest Winning Streak of 2024).
The reconstruction of the blue-chip index is also paying off. Amazon, which joined the index on Feb 26, provided a boost to the index after it reported blockbuster first-quarter 2024 results. The e-commerce giant beat both earnings and revenue estimates driven by growth in its advertising and AI-powered cloud computing units.
Inflation in the United States cooled down for the first time in six months, sparking new bets on Fed rate cuts as soon as September. Low rates are favorable for stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Lower rates typically reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets. According to the CME FedWatch Tool, around 70% of traders now expect at least one cut by the September meeting, a notable increase from a week ago.
DIA in Focus
SPDR Dow Jones Industrial Average ETF is one of the largest and most popular ETFs in the large-cap space, with AUM of $33.3 billion and an average daily volume of 3.7 million shares. It tracks the Dow Jones Industrial Average Index, holding 30 stocks in its basket, with each making up for less than 8.6% share. Financials (23.2%), information technology (18.8%), healthcare (18.5%), consumer discretionary (14.7%) and industrials (13.9%) are the top five sectors (read: ETFs to Make the Most of the Sector Rotation).
SPDR Dow Jones Industrial Average ETF charges 16 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
Best-Performing Stocks of DIA
American Express is a diversified financial services company offering charge and credit payment card products and travel-related services worldwide. Shares of AXP have risen 28.8% so far this year. American Express earnings are expected to grow 15% this year. It makes up for 3.97% share in DIA portfolio. It has a Zacks Rank of 3 (Hold).
Walmart has evolved from being just a traditional brick-and-mortar retailer into an omnichannel player. It is engaged in the operation of retail, wholesale and other units worldwide. The stock has risen 21.8% this year. Walmart has an expected earnings growth rate of 4.3% for this year and has a Zacks Rank #3.
Amazon is one of the largest e-commerce providers. It has jumped nearly 21% this year and accounts for 3% in the fund’s basket. AMZN is expected to see earnings growth of 56.5% for this year and accounts for 3% of DIA portfolio. The stock has a Zacks Rank #3.
Goldman is a leading global financial holding company providing IB, securities, investment management and consumer banking services to a diversified client base. The stock has gained more than 20% so far this year and has an estimated earnings growth rate of 60.5% for this year. Goldman accounts for a 7.6% share in DIA’s portfolio and has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Merck operates as a healthcare company worldwide. It has gained more than 20% so far this year and accounts for 2.1% in the fund’s basket. Merck is expected to see earnings growth of 474.2% for this year and has a Zacks Rank #3.