The Dow Jones Industrial Average hit record highs at the end of December, as the current stock market rally continues. Top Dow Jones stocks to watch in December are Apple, Microsoft and Walmart (WMT).
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There are clear winners — and losers — heading into the final month of 2020. The top three performing Dow Jones stocks through Nov. 30 were Apple (AAPL), recently-added Salesforce.com (CRM) and Microsoft (MSFT) with gains of 62.2%, 51.1% and 35.7%, respectively.
The three biggest losers through November were Walgreens Boots Alliance (WBA), Boeing (BA) and Chevron (CVX) with declines of 35.5%, 35.3% and 27.7%, respectively.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 42.7% for the year through Thursday’s close. The S&P 500 is up 14.6%, while the DJIA is up 5.8% year to date.
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 Buy And Watch
| Company Name | Symbol | Closing Price | 2020 YTD Performance |
|---|---|---|---|
| Apple | (AAPL) | 119.05 | +62.2% |
| Home Depot | (HD) | 277.41 | +27.0% |
| Microsoft | (MSFT) | 214.07 | +35.7% |
| Nike | (NKE) | 134.70 | +33.0% |
| Salesforce.com | (CRM) | 245.80 | +51.1% |
| Walmart | (WMT) | 152.79 | +28.6% |
Source: IBD Data As Of Nov. 30, 2020
Amid the current stock market rally— according to the IBD Big Picture — investors should continue to use the stock market’s strength to buy breakouts. Start slowly with new purchases and see how they perform. If they work, then add more exposure. But if breakouts start to fail, then you can back away.
Potential Dow Jones stocks to buy and watch in December that are in or near buy zones include Apple, Microsoft and Walmart.
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Apple Stock
Dow Jones stock Apple broke out above an aggressive entry at 122.09 on Dec. 1, according to MarketSmith chart analysis. Meanwhile, shares are moving further above another aggressive entry at 125.49 while approaching a cup base’s 138.08 buy point.
Shares rose 3.6% Monday.
The blue chip giant is the No. 1-performing Dow Jones stock for 2020, with a 79.8% advance through Thursday.
According to the IBD Stock Checkup, Apple stock shows an 88 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.
Apple stock is on IBD’s Leaderboard.
Microsoft Stock
Software giant Microsoft traded up 1% Monday. Shares are holding above their key 10-week line. The stock is approaching a proper buy point at 228.22.
Microsoft is also an IBD Leaderboard stock.
Walmart Stock
Dow Jones leader Walmart is trading about 5% below a 151.43 buy point in a flat base, according to MarketSmith chart analysis. The 5% buy zone goes up to 159.00.
Shares rose 1.2% Monday.
The discount retailer is the No. 7-performing stock on the Dow Jones Industrial Average, advancing 20.8% year to date through Thursday’s close.
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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