5 Dogs Of The Dow Stocks For 2019

Volatility staged a formidable comeback to the bourses to spook investors this year. The Dow is no exception to this phenomenon, with the index currently down 7.1% year to date. Trade tensions were a major headwind for investors, followed by the Fed’s consistent policy tightening. Strong earnings and a robust economy did boost markets in short bursts, but the overall picture remains gloomy.

Performance During 1Q18

The Dow gained 5.8% in January, riding on the tax cuts passed in December 2018. The end of a government shutdown and strong fourth-quarter earnings were other major catalysts for gains.

The index surged 4.3% in February despite entering correction territory earlier in the month, following a spike in bond yields. However, President Trump signed into law a bipartisan budget deal which fueled monthly gains.

Turbulence struck the Dow in March, with the index declining 3.5% over the month. President Trump imposed $60 billion of tariffs Chinese imports, giving rise to fears of a trade war. At the end of the first quarter, the index had lost 2.3%.

Performance During 2Q18

The index gained 0.3% in April even as strong earnings results failed to enthuse investors. Rising bond yields, trade war fears, and geopolitical concerns weighed on investor sentiment.

First-quarter earnings finally had an impact in May, with the index gaining 1.1%. However, trade conflicts continue to take a toll on the market resulting in severe volatility. Rising bond yields and geopolitical tensions also weighed on investors.

Trade war fears and a rate hike from the Fed led to the index losing 0.6% in June. However, the index managed to gain 0.7% in the second quarter despite the fact that it was marked by tremendous volatility.

Performance During 3Q18

July was a good month for the Dow, with the index gaining 4.7%. This was its biggest monthly percentage gain since January. Once again, robust earnings boosted stocks as the United States and China imposed tariffs on each other.

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