As August comes to a close, it’s worth reflecting on the performance of the Dow Jones Industrial Average throughout the month. August has been a month of volatility for the stock market, with various events causing fluctuations in stock prices. One significant event was the release of lackluster jobs data for July, which initially sparked fears of a recession in the U.S. economy. This led to a global market sell-off, resulting in the Dow posting its worst day in almost two years, dropping over 1,000 points.
Despite the initial chaos in the market, the Dow Jones Industrial Average has managed to recover since its low point earlier in the month. As of Friday’s close, the Dow is trading approximately 1.8% higher month-to-date. This recovery is a positive sign for investors, indicating that the market may be stabilizing after the recent turbulence.
When looking at the top performers on the Dow Jones Industrial Average for August, it’s clear that certain stocks have stood out from the rest. Walmart, in particular, has been a standout performer this month, with shares up around 12.5% month-to-date and 47% year-to-date. This makes it the best performing consumer staples stock on the S&P 500 this year. Despite its impressive performance, analysts remain bullish on Walmart, with the average price target suggesting a 6.6% upside from the current trading price.
Following closely behind Walmart is McDonald’s, which has seen shares rise by nearly 9% month-to-date. Analysts are also optimistic about McDonald’s prospects, with 47.4% of investors issuing a buy rating on the stock. Health-care stock Merck has also performed well in August, with its trading level implying a 19.5% increase to its average price target. Merck also boasts the highest percentage of buy ratings among the Dow leaders, at 71.4%.
While most of the top performers on the Dow Jones Industrial Average have shown positive momentum in August, Coca-Cola and International Business Machines (IBM) have lagged behind. These two stocks are the only ones with a bearish outlook, as their average price targets imply downside of 1.2%. Despite this, both Coca-Cola and IBM have still posted gains this month, with Coca-Cola up more than 8% and IBM up 5.2% month-to-date.
August has been a month of ups and downs for the Dow Jones Industrial Average. While the market experienced turbulence due to economic concerns, it has managed to bounce back and show signs of stability. The top performers on the Dow, such as Walmart and McDonald’s, have demonstrated strength and resilience in the face of market volatility. However, it’s important for investors to remain vigilant and keep an eye on underperformers like Coca-Cola and IBM, as they navigate the ever-changing landscape of the stock market.