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The Dow Jones Industrial Average finished the month of July on a three-day win streak that left it at its highest level since early June. The best Dow Jones stocks to buy and watch in August are Apple (AAPL), Chevron (CVX), Merck (MRK), Microsoft (MSFT) and UnitedHealth (UNH).
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There are clear winners — and losers —at the start of August. The top three performing Dow Jones stocks through July 29 were Chevron, Merck and Amgen (AMGN) with advances of 39.6%, 16.6% and 10.0%, respectively.
The worst three Dow Jones stocks through July 29 were Disney (DIS), Nike (NKE) and Intel (INTC) with respective declines of 31.5%, 31.1% and 29.5% for the year.
The tech-heavy Nasdaq finished July down 20.8% for the year. The S&P 500 was down 13.3%, while the Dow Jones Industrial Average was down 9.6% through July 29.
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 Watch
| Company Name | Symbol | Closing Price | 2022 YTD Performance |
|---|---|---|---|
| Apple | (AAPL) | 162.51 | -8.5% |
| Chevron | (CVX) | 163.78 | +39.6% |
| Merck | (MRK) | 89.34 | +16.6% |
| Microsoft | (MSFT) | 280.74 | -16.5% |
| UnitedHealth | (UNH) | 542.34 | +8.0% |
Source: IBD Data As Of July 29, 2022
Amid the current stock market rally — according to the IBD Big Picture — investors should focus on the top stocks that show strong relative strength. They could be some of the market’s leaders if the Dow Jones Industrial Average is able to extend its rebound.
Potential Dow Jones stocks to buy and watch in August that are in or near buy zones include Apple, Chevron, Merck, Microsoft and UnitedHealth.
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Apple Stock
Apple stock fell 1% Thursday, giving up a part of Wednesday’s 3.8% jump. Apple shares are about 10% off their 52-week high, according to IBD MarketSmith chart analysis, as they continue to rebound.
According to the IBD Stock Checkup, Apple stock shows an 87 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.
Chevron Stock
Dow Jones energy giant Chevron is building the right side of a cup base that has a 182.50 buy point. Be on the lookout for a potential handle to offer a lower entry. Shares surged last week after the company’s strong earnings results.
Chevron shares slipped 1.2% Thursday.
Merck Stock
Drug giant Merck is forming a new flat base with a 95.82 buy point, but is about 9% away from the entry.
Shares dropped 0.6% Thursday.
Microsoft Stock
Dow Jones software leader Microsoft lost 0.75% Thursday.
MSFT shares are about 20% off their 52-week high.
UnitedHealth Stock
Health insurance giant and IBD Leaderboard stock UnitedHealth is in buy range above its double-bottom-with-handle base’s 518.80 buy point amid Thursday’s 1.2% fall.
UNH stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
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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