The Dow Jones Industrial Average ended September back in a new uptrend amid a month of volatile price action. Top Dow Jones stocks to watch in October are Amgen (AMGN), Apple, Home Depot (HD) and Microsoft.
There are clear winners — and losers — through the first nine months of 2020. The top three performing Dow Jones stocks through Oct. 2 were Apple (AAPL), newly-added Salesforce.com (CRM) and Microsoft (MSFT) with gains of 54.0%, 52.4% and 30.8%, respectively.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 24.7% for the year through Thursday’s close. Meanwhile, the S&P 500 is up 2.5%, while the Dow is down 6.6% year to date, through the Oct. 29 close.
What Is The Dow Jones Industrial Average?
Founded in 1896 with 12 stocks, the Dow Jones Industrial Average is one of the oldest stock market indexes. There are 30 Dow Jones stocks designed to serve as a bellwether for the general U.S. stock market. Other major stock indexes include the technology-heavy Nasdaq composite and the S&P 500 index — an index of the 500 largest companies in the United States.
Best Dow Jones Stocks To Buy And Watch
|Company Name||Symbol||Closing Price||2020 YTD Performance|
Source: IBD Data As Of Oct. 9, 2020
Amid the current stock market rally— according to the IBD Big Picture — investors should be focusing on the stocks that held up the best during the recent market weakness. These stocks will have strong relative strength lines, and could be some of the new uptrend’s stock market leaders.
Potential Dow Jones stocks to buy and watch in October that are in or near buy zones include Amgen, Apple, Home Depot and Microsoft.
Apple stock remains below its key 50-day support level, according to MarketSmith chart analysis. Apple shares stumbled 3.5% Friday after reporting quarterly earnings results. Shares are about 19% off their 52-week high.
Shares are tracing the right side of a new cup with handle, offering a 125.49 buy point.
According to the IBD Stock Checkup, Apple stock shows a 90 out of a best-possible 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
Home Depot Stock
Home Depot stock is tracing a flat base with a 293.05 buy point. Shares moved down 0.3% Friday. The home-improvement retailer broke out above a 259.39 buy point in a cup with handle on July 15.
Bullishly, the stock’s RS line is nearing a new high, indicating sharp stock market outperformance.
Microsoft stock fell 0.6% Friday, as the stock approaches a 225.31 buy point in a cup with handle. Shares are stuck below their 50-day line.
Microsoft is an IBD Leaderboard stock.
Tip: Before making any investment decisions, be sure to check current market conditions, and use IBD Stock Checkup to see if your stock gets passing ratings for the most important fundamental and technical criteria. To get ongoing chart analysis, and alerts to buy and sell signals, check out the unique features, stock lists and chart annotations at MarketSmith, Leaderboard and SwingTrader.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on Dow Jones stocks and the stock market.
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