As of Friday's close, the Dow Jones Industrial Average was down 2.5% for the year to date. In 2015, it has traded in a narrow range and has been pretty much a sideways move thus far. However upon closer inspection, its individual components are acting very strangely. The bottom third of the Dow is down 9%+ for the year with 9 stocks down over 14%. With global growth slowing in China and Europe, it is no surprise that industrials, materials and energy stocks are at the bottom of the barrel. On the other hand, the top 8 performing stocks are up 9%+ with 8 stocks up double digits. Healthcare, consumer discretionary and technology sectors are holding up the boat. This is a very bizarre situation and one I can't recall ever seeing before.
Here is a closer look at the numbers. Remember that the Dow is a price weighted index so it is lucky that the best performers have been the higher priced stocks.
| PRICE | PRICE | ||
| % CHG | PER SHR | ||
| COMPANY NAME | YTD | 8/7/15 | SECTOR |
| UNITEDHEALTH GROUP | 21% | 121.82 | Health |
| NIKE INC ‘B' | 19% | 114.51 | CnDisc |
| DISNEY (WALT) | 16% | 109.35 | CnDisc |
| VISA | 13% | 74.21 | Tech |
| PFIZER | 13% | 35.19 | Health |
| HOME DEPOT | 11% | 116.93 | CnDisc |
| BOEING | 10% | 142.42 | Indus |
| JPMORGAN CHASE & CO | 9% | 68.05 | Fin |
| MCDONALD'S | 6% | 98.92 | CnDisc |
| GOLDMAN SACHS GROUP | 5% | 203.44 | Fin |
| APPLE | 5% | 115.52 | Tech |
| MERCK & CO. | 2% | 57.97 | Health |
| GENERAL ELECTRIC | 2% | 25.79 | Indus |
| CISCO SYSTEMS | 1% | 28.15 | Tech |
| MICROSOFT | 1% | 46.74 | Tech |
| TRAVELERS COS (THE) | 0% | 105.48 | Fin |
| VERIZON COMM | -1% | 46.36 | Telecm |
| COCA-COLA | -1% | 41.77 | CnStp |
| INT'L BUSINESS MACH | -3% | 155.12 | Tech |
| JOHNSON & JOHNSON | -6% | 98.85 | Health |
| 3M COMPANY | -9% | 148.89 | Indus |
| AMERICAN EXPRESS | -14% | 79.72 | Fin |
| UNITED TECHNOLOGIES | -15% | 98.29 | Indus |
| CATERPILLAR | -16% | 77.29 | Indus |
| EXXON MOBIL | -17% | 76.83 | Energy |
| WAL-MART STORES | -17% | 71.25 | CnStp |
| PROCTER & GAMBLE | -17% | 75.48 | CnStp |
| INTEL | -20% | 28.88 | Tech |
| DU PONT E I DE NEORS | -24% | 53.43 | Matrls |
| CHEVRON | -25% | 83.75 | Energy |
The second half of 2015: Up or Down?
The big question is: Will the Dow finish the year up or down? It is unlikely that the laggards will suddenly recover and lead the Dow higher. Energy and materials continue to face deflationary pressures and are unlikely to see a sharp rebound. That means, the Dow is highly reliant on the the consumer, tech and healthcare sectors. The fate of the Dow is in their hands. If the current leaders stumble, it will likely be a bad finish and down year for the Dow.
Do you think the market will finish higher or lower for the year? Let us know in the comments below.
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