Dow Jones Industrial Average
The Dow Jones Industrials is in rally mode with an upward trend since the late October lows, but there is no “new high” like the Nasdaq 100. Among the 30 large-cap stocks that make up the Dow, there are 4 names that have been a real drag on the index this month.
Cisco Systems, Walmart
WMT
CLC
WBA
THE Cisco Systems
CSCO
The daily price chart looks like this:
Cisco Systems Daily Price Chart, 11 24 23.
After the company missed its quarterly earnings and revenue estimates, Wall Street investment managers took the news badly and sold shares. From a high of $57.50 in early September to the current price of $48 equates to a decline of 16.5% in less than 3 months.
The sales volume (the reddish bar below the price chart) is huge, a strong confirmation of the new downtrend. You can see how the 50-day moving average (the blue line) has moved lower and how the 200-day moving average (the red line) has interrupted its upward trajectory.
Here is the Walmart daily price table:
Walmart Daily Price Chart, 11 24 23.
This significant gap in mid-November came after the company’s CFO predicted lower consumer spending for the remainder of 2023 after noting a “slowdown” in store sales in October. CFO
CFO
The stock sold just above its ascending 200-day moving average and managed to stay above the October sell-off level, a sign of buying support there. The 50-day moving average is reversing after a continued upward trend since late March.
The daily price table for Chevron is here:
Chevron Daily Price Chart, 11 24 23.
The drop in the price of oil is affecting major energy companies, including a giant like Chevron. West Texas Intermediate Crude was trading at $94 in late September and is now trading at $77. Good for those who pump gas at the convenience store but makes the sector less profitable.
Chevron fell from a high of $170 in September and is trading after Thanksgiving at $144. Those who bought stocks at the peak now find themselves with a 15% loss over 3 months. The 50-day moving average has moved below the 200-day moving average for a bearish mood.
THE Walgreens Boot Alliance The daily price chart looks like this:
Walgreens Boots Alliance Daily Price Chart, 11 24 23.
The $180 million loss from the previous year continues to impact the 9,000-store chain, with management closing stores and cutting staff. Analysts at JP Morgan like these changes and in October upgraded the stock from “neutral” to “overweight” with a price target of $27 to $30.
This is one of the worst price charts among the Dow 30, with a relentless downward trend from the April peak of just over $34 to the current $21. Walgreens Boots Alliance is unable to move above its 200-day moving average or its 50-day moving average.
For comparison, here is the daily price chart of the Dow Jones Industrial Average:
Dow Jones Industrial Average daily price chart, 11 24 23.