To The Moon

1. Who contributed the most to the recent rise of $DJIA(DJIA)$?

The $DJIA(.DJI)$ posted its biggest monthly gain in 46 years in October, with the Dow Jones Industrial Average outperforming the Nasdaq Composite by about 9.5% points in October, the largest single-month difference gain since February 2002.

Data Source: FactSet

$Caterpillar(CAT)$ is the top Dow stock for October,$Chevron(CVX)$ , $Honeywell(HON)$ ,$JPMorgan Chase(JPM)$ and $Travelers(TRV)$ round out the top five stocks in the blue chip stock index in October.

According to latest data from Tigertrade,, the top 10 performed stocks among the 30 constituent stocks in the past 20 days are: $Boeing(BA)$ ,$Caterpillar(CAT)$ ,$JPMorgan Chase(JPM)$ ,$Goldman Sachs(GS)$ ,$Honeywell(HON)$ ,$Amgen(AMGN)$ ,$McDonald's(MCD)$ ,$IBM(IBM)$ ,$Walgreens Boots Alliance(WBA)$ ,$Travelers(TRV)$.

Inside the 10 stocks, $Goldman Sachs(GS)$ , $Honeywell(HON)$ ,$Amgen(AMGN)$ , $McDonald's(MCD)$ hit new highs on Thursday.

Data from Tiger trade

2.Why those stocks performed so good? let's take a look in details:

1.$Boeing(BA)$’s efforts to strengthen the Commercial Airplanes unit and the resumption of its 787 Dreamliner aircraft deliveries after witnessing several setbacks bode well for the company’s performance.So far, in 2022, Boeing has delivered 363 airplanes, including almost 300 737 MAXs. Although deliveries fell to 35 in October from 51 in September, It booked 122 orders in October, up from September's 96 new orders with six cancellations. 

At a recent investor conference, Boeing disclosed plans to generate free cash flow between $1.5 billion and $2.0 billion in 2022 and $3 billion – $5 billion in 2023. Notably, it also intends to increase deliveries of 737 MAX and 787 airplanes.

2. The heavy equipment giant $Caterpillar(CAT)$ spiked 32.2% in October. That includes a nearly 8% earnings gap-up on Oct. 27. For the September quarter, Caterpillar earnings surged 49% per share as revenue grew 21%, both on a year-over-year basis. And it expects the momentum to continue in Q4 as well.

Simply wallstreet analyst pointed，$Caterpillar(CAT)$ is trading around its fair value recently，which around 15.62% above intrinsic value, it's profit expected to grow by a double-digit 12% over the next couple of years, the outlook is positive for Caterpillar.

3. $JPMorgan Chase(JPM)$price hit record high on Thursday, latest news said J.P. Morgan and Mastercard modernize account-based payments with innovative 'pay-by-bank' solution.

For the third quarter, JPMorgan earnings fell 16.6% and revenue grew 10%, with both beating views. Net interest income jumped 34% thanks to higher interest rates. JPM stock came amid strong earnings for several big banks.

4. $Goldman Sachs(GS)$ did post third-quarter results that topped analysts’ expectations for profit and revenue on better-than-expected trading results. Goldman’s fixed income traders generated $3.53 billion in revenue, a 41% jump from the year-earlier period, took advantage of heightened client activity in bonds and currencies amid choppy markets.

5.$Honeywell(HON)$ Hit new high on Thursday trading. For the Q3, $Honeywell(HON)$ earnings rose 11% as sales grew nearly 6%. The solid results highlighted operational execution despite a multitude of macroeconomic headwinds. 

It's corporate business is good, as aerospace and energy are still hot sectors, management expects its Aerospace and PMT (exposed to downstream oil and gas spending) segments to "lead growth and profitability" in 2023.

6.$Amgen(AMGN)$ ,the world's largest biotech drugmaker have returned +17.5% over the past 20 trading days. It reported total revenues in Q3 2022 decreased 1% to $6.7 billion in comparison to the third quarter of 2021, resulting from a 1% decline in global product sales.

Morgan Stanley's particularly optimistic about the company's obesity treatment AMG133. Although it would be years until the drug currently in phase 1 trials might be approved and commercialized. Morgan Stanley estimates worth more than $50 billion, while the expected early-2023 launch of arthritis drug adalimumab in the meantime promises a more immediate impact.

7. $McDonald's(MCD)$ 's global comparable sales jumped almost 10% y-o-y, and the U.S. market posted its ninth straight quarter of rising comps. Even during the Great Recession in 2008, McDonald's stock actually gained ground even as the S&P 500 fell 37%.  Like$Chevron(CVX)$ , $McDonald's(MCD)$ 's also has a long history of paying healthy dividends.

8.$IBM(IBM)$ may have missed out on some of its initial opportunities to capitalize on things like cloud computing, artificial intelligence, and cybersecurity when those markets were relatively new a decade ago. The company's making up for lost time now, though. Not only does it have strong plays in all of those arenas now, IBM is quickly becoming a powerhouse in hybrid cloud computing, which supports them all.

9.$Walgreens Boots Alliance(WBA)$ is an integrated healthcare, pharmacy and retail leader serving millions of customers and patients every day, with a 170-year heritage of caring for communities. WBA employs more than 325,000 people in 1300 locations globaly. 

Over the last five years, its quarterly revenue grew by only 5.5%, reaching $32.4 billion in its fiscal Q4 2022. But its quarterly net income shrank considerably in the same period, ending with a loss of $415 million.

WBA paid decent dividends, operate with business models that are proven to be sustainable over time, but different to a pharmaceutical juggernaut like AbbVie, a massive pharmacy chain like Walgreens is a weaker option, it is not a growth stock.  

10. $Travelers(TRV)$ reported third-quarter 2022 core income of $2.20 per share, which beat the Zacks Consensus Estimate by 24.3%. In the third quarter, Travelers' premiums came in at $8.6 billion, up 10% from last year and a record level for the insurer. The insurer saw strong customer retention, with 86% of customers renewing their business insurance and 89% continuing their bond & specialty coverage.

Travelers raised its outlook for its fixed-investment income to $500 million in the fourth quarter and $540 million on average per quarter in 2023.

3.Will the $DJIA(.DJI)$ 's rise continue?

Carson Investment Research data showsA huge october for the Dow could mean more gains. Dow performance after 10% monthly gain since WWII shows an average return after 3 months, a 10.6% in 6 months，and an average return of 15.9% in 12 months.

However, In general, stocks with larger market capitalizations in the index constituent stocks have a much impact on the volatility of the index.

So, let's seethe performance of the top 10 Dow components by market capitalization over the past 20 trading days.: $Apple(AAPL)$ dropped2.51%, ,$Microsoft(MSFT)$ declined 0.55%, and 8 other stocsk $UnitedHealth(UNH)$ , $Johnson & Johnson(JNJ)$ ,$JPMorgan Chase(JPM)$ $Wal-Mart(WMT)$ ,$Visa(V)$ ,$CVS Health(CVS)$ ,$Procter & Gamble(PG)$ ,$Home Depot(HD)$ see positive returns.

Data from Tiger trade

 Among them, $JPMorgan Chase(JPM)$ and $Chevron(CVX)$ were 25.22% and 12.8% respectively. While the two trillion-dollar giants $Apple(AAPL)$ and $Microsoft(MSFT)$ have some recent headwinds:

1. $Apple(AAPL)$’s revenue in the Q3 increased by 8% compared with the same period last year. Foreign exchange factors dragged down the company’s revenue growth by 6%. However, the actual impact was greater. "Looking forward to the fourth quarter, I think foreign exchange is still the single largest factor affecting performance, which may pull down the quarterly close by 4.6%." As of November 10, Apple's stock price has fallen 26.3% from its high point and a drop of 24.5% year-to-date;

2. $Microsoft(MSFT)$ 's proposed $68.7 billion acquisition of Activision Blizzard was under "in-depth investigation" by the European Commission. Two weeks ago, the company reported a net profit of $17.6 billion, down 14%. As of November 10, Microsoft stock has been sliding from its November 2021 high of $346.97, down 33.25% year-to-date.

Some ETFs related to Dow you may interested in:

Bullish: $ProShares UltraPro Dow30(UDOW)$ ,$ProShares Ultra Dow30(DDM)$,

Bearish:$ProShares UltraShort Dow30(DXD)$ ,$ProShares Short Dow30(DOG)$ ,

Final Question For You：

Are you optimistic about the trends in the Dow component stocks?

Whatelse Dow Stocks You would like to follow to invest?

Share your ideas and you will win coins!