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The Dow Jones Industrial Average emerged stronger than the other two major indices in the latest market rally, driven by renewed hopes of rate cuts, solid corporate earnings and increased stock buybacks. The blue-chip index gained for seven consecutive days, marking its longest winning streak this year.

While 27 of the 30 members of the Dow Jones Index have performed well over the last seven days, we have highlighted five of them that have been leading the way higher. These are Amgen (AMGN - Free Report), Amazon.com Inc. (AMZN - Free Report), Apple Inc. (AAPL - Free Report), Boeing (BA - Free Report) and The Goldman Sachs Group (GS - Free Report).

The outperformance came as the market’s rally broadened out. If this trend lasts, the Dow could continue its upward trajectory this summer.

The reconstruction of the blue-chip index is finally paying off. Amazon, which joined the index on Feb 26, provided a boost to the index after it reported blockbuster first-quarter 2024 results. The e-commerce giant beat both earnings and revenue estimates driven by growth in its advertising and AI-powered cloud computing units.

The blue-chip index also benefited from Apple’s robust second-quarter fiscal 2024 results. The iPhone manufacturer spread strong optimism after lifting its dividend payments and announcing a record share buyback program amid the steep decline in iPhone sales.

Another big mover in the index is Amgen, which surged more than 14% last week on a solid earnings report and encouraging test results of its injectable weight-loss drug MariTide. Bank stocks and small-cap stocks also showed an upward trend in recent sessions, powering the blue-chip index.

Further, the index appears unaffected compared with the other two major indices, which cooled down somewhat in the recent sessions following the latest Fed official comments that higher rates will likely stay for some time.

Best-Performing Stocks
 

Amgen is one of the biggest biotech companies in the world, with a strong presence in the oncology/hematology, cardiovascular disease, neuroscience, inflammation, bone health, nephrology, and neuroscience markets. The stock has risen 14.5% so far this month.

Amgen saw a positive earnings estimate revision of 3 cents over the past seven days for this year and has an expected earnings growth rate of 4.3%. It has a Zacks Rank #3 (Hold) currently.

Amazon is one of the largest e-commerce providers. It jumped nearly 9% over the past seven days and saw a positive earnings estimate revision of a penny for this year in the same time frame.

AMZN is expected to see earnings growth of 56.5% for this year and has a Zacks Rank #2 (Buy). 

Apple designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories worldwide. The company offers the iPhone, a line of smartphones, Mac, a line of personal computers, iPad, a line of multi-purpose tablets, wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. Shares of AAPL are up 8% so far this month.

Apple saw a positive earnings estimate revision of 4 cents over the past seven days for the fiscal year (ending September 2024) with an estimated earnings growth rate of 7.2%. The stock has a Zacks Rank #3.

Boeing has been the premier manufacturer of commercial jetliners for decades. The company’s premier jet aircraft along with varied defense products position it as one of the largest defense contractors in the United States. It has a solid estimated earnings growth of 95.9% for this year.

Boeing has risen 8% so far this month. It has a Zacks Rank #4 (Sell).

Goldman is a leading global financial holding company providing IB, securities, investment management, and consumer banking services to a diversified client base. It has risen 6.8% so far this month.

Goldman saw a solid earnings estimate revision of 71 cents over the past seven days for this year and has an estimated growth rate of 60.8%. It has a Zacks Rank #2 currently.

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