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5 Stocks Driving Three Major Indexes to Record Highs

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Wall Street bulls are raging forward this year, breaking one record after another between Jul 15 and Nov 4. Last week, both the S&P 500 and the Nasdaq Composite broke their previous highs achieved in July. On Monday, the Dow joined the party.

Five stocks — Apple Inc. (AAPL - Free Report) , Intel Corp. (INTC - Free Report) , JPMorgan Chase & Co. (JPM - Free Report) , United Technologies Corp. (UTX - Free Report) and The Home Depot Inc. (HD - Free Report) —  which are common to all three indexes — surged during the Jul 15 to Nov 4 period. The positive development on U.S.-China partial trade deal, better-than-expected third-quarter 2019 earnings and future guidance, and finally strong jobs data for October and better-than-expected Q3 GDP acted as catalysts to the latest surge.

Major Indexes Record New Highs

On Nov 4, the Dow rallied 114.75 points or 0.4% to close at 27,462.11, surpassing its previous all-time closing high of 27,359.16 on Jul 15. Similarly, the S&P 500 gained 0.4% to achieve a new closing high of 3,078.27. Notably, the benchmark index set three all-time high records last week, exceeding its previous all-time high on Jul 26.

Meanwhile, the Nasdaq Composite advanced 0.6% on Nov 4 to finish at a fresh new high of 8,433.20. On Nov 1, the tech-laden index recorded an all-time high closing, breaking its previous record set on Jul 26.

Year to date, the Dow, the S&P 500 and the Nasdaq Composite have rallied 17.7%, 22.8% and 27.1%, respectively. At present, the Dow is marching forward to record its best yearly performance since 2017. The S&P 500 is moving toward posting its biggest yearly gain since 2013. The Nasdaq Composite is also on track to create a new record.

5 Stocks Lead Major Indexes to New Highs

Of course, several microeconomic, macroeconomic and geopolitical positive developments gave a boost to the indexes. In addition, the stock price movement of five corporate behemoths, which are common members of all three major stock indexes, acted as major driver of the indexes’ rally.

Prices of these stocks soared during the period of Jul 15 to Nov 4 and still have upside left. Each of these stocks carries either a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows price performance of five stocks year to date.

 

Apple designs, manufactures and sells iPhone, iPad, iPod, Apple TV, Mac personal computers, Apple Watch, HomePod and AirPods. These devices are powered by software applications including iOS, macOS, watchOS and tvOS operating systems.

In the fourth quarter of fiscal 2019 (ended September), Apple surpassed both the Zacks Consensus Estimate for the top and the bottom line. The company’s non-iPhone businesses, particularly Services and Wearables, are expected to drive top-line growth in fiscal 2020 and beyond.

The Zacks Rank #3 company has an expected earnings growth rate of 10.9% for the current year. The Zacks Consensus Estimate for the current year has improved 1.4% over the last 30 days. The stock has soared 27.1% during the period of Jul 15 to Nov 4. Year to date, it has jumped 63.2%.

Intel is the world’s largest manufacturer of semiconductor products. It supplies the computing and communications industries with microprocessors and system building blocks that are integral to computers and other connected devices, servers, and networking and communications products.

In third-quarter 2019, Intel surpassed the Zacks Consensus Estimate for both the top and the bottom line. The primary focus area of management is data center and cloud, wherein Intel is doing everything possible to maintain its market share and profitability.

The Zacks Rank #2 company has an expected earnings growth rate of 0.7% for the current year. The Zacks Consensus Estimate for the current year has improved 5.5% over the last 30 days. The stock has surged 16.2% during Jul 15 to Nov 4. Year to date, it has climbed 22.7%.

JPMorgan Chase operates as a leading financial services company worldwide. It operates in four segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management.

In third-quarter 2019, JPMorgan Chase surpassed the Zacks Consensus Estimate for both the top and the bottom line. Decent loan demand continued to support JPMorgan’s net interest income (NII) and net interest yield. Further, it remained focused on acquiring the industry's best deposit franchise and strengthening its loan portfolio.

The Zacks Rank #3 company has an expected earnings growth rate of 15.1% for the current year. The Zacks Consensus Estimate for the current year has improved 2% over the last 30 days. The stock has surged 12.6% during the period of Jul 15 to Nov 4. Year to date, it has rallied 31.9%.

United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The operations of the company are primarily classified into two principal businesses: Commercial and Aerospace.

In third-quarter 2019, United Technologies outpaced the Zacks Consensus Estimate for both the top and the bottom line. Revenues for the aerospace business went up on the back of continued strength in commercial aftermarket and military businesses. In addition, impressive contribution from its acquired Rockwell Collins business boosted revenues of the aerospace business.

The Zacks Rank #3 company has an expected earnings growth rate of 6.8% for the current year. The Zacks Consensus Estimate for the current year has improved 1.5% over the last 30 days. The stock has climbed 11.1% during Jul 15 to Nov 4. Year to date, it has jumped 38.5%.

The Home Depot is the world’s largest home improvement specialty retailer with over 2,200 retail stores across the globe, offering a diverse range of branded and proprietary home improvement items, building materials, lawn and garden products, and related services.

In the last reported (second quarter of fiscal 2019) quarter, The Home Depot outpaced the Zacks Consensus Estimate for earnings but missed the top line estimate. Home Depot is witnessing significant benefits from the execution of its “One Home Depot” investment plan, focused on delivering an interconnected shopping experience for customers. On the digital front, it is investing in its website and other applications to further enhance online customer experience.

The Zacks Rank #2 company has an expected earnings growth rate of 2.3% for the current year. The Zacks Consensus Estimate for the current year has improved 0.1% over the last 30 days. The stock has advanced 8.3% from Jul 15 to Nov 4. Year to date, it has soared 36.7%.

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