Dow 30 Stock Roundup: BA, INTC, MSFT, KO, V, PG Earnings Impress, 3M Disappoints

The index suffered heavy losses in a week marked by mixed earnings numbers. The week started on a low key after China indicated that it would suspend stimulus measures and undertake structural reforms.

Strong first-quarter earnings numbers buoyed the index on Tuesday. However, disappointing results from key index components led to losses over the next two trading sessions.

Last Week’s Performance

The index gained 0.4% last Thursday on the back of strong economic and earnings data. Honeywell HON and Travelers Companies TRV beat both earnings and revenue estimates in the first quarter. American Express Co. AXP also beat on earnings. However, revenues came in at $10.4 billion, missing the Zacks Consensus Estimate by 1.2%.

Retail sales increased 1.6% in March, outpacing the consensus estimate of 0.9% rise. This was the highest monthly increase experienced since September 2017. Meanwhile, jobless claims for the week ended Apr 13 fell to a 50-year low.

The index increased 0.6% over last week. Strong first-quarter earnings data and robust economic data enhanced investors’ confidence in risky assets such as equities. However, concerns about global economic concerns remain despite strong economic data from China.

The Dow This Week

The index lost 0.2% on Monday as the positive impact of a surge in oil prices was partially negated by news that China may end economic stimulus and opt for structural reforms. Moreover, investors preferred to remain largely on the sidelines at the start of the busiest week of the first-quarter earnings season.

The index increased 0.6% on Tuesday buoyed by strong first-quarter 2019 earnings results. The Dow also remained at a striking distance from an all-time peak. Shares of The Coca-Cola Co. KO gained 1.7% after beating earnings and revenue estimates. Meanwhile, new home sales increased 4.5% in March to a seasonally adjusted annual rate of 692,000.

The index declined 0.2% on Wednesday following mixed financial results for the first quarter of 2019. Despite strong results, shares of Caterpillar Inc. CAT plunged 3.1% owing to a 4% drop in construction revenues in Asia Pacific region, especially in China. Management warned of a possible slowdown in its China business.

The index lost 0.5% on Thursday, shedding more than 100 points after shares of 3M Company MMM plummeted nearly 13% after missing earnings expectations. This was its worst performance since Oct. 19, 1987, better known as Black Monday.

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