The Dow Jones Industrial Average remains in rally mode through the end of July, with the stock market at its 2023 highs. The best Dow Jones stocks to buy and watch in August 2023 are Apple (AAPL), Boeing (BA), Caterpillar (CAT), Microsoft (MSFT) and Salesforce (CRM).
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There are clear winners — and losers — at the start of August. The top three performing blue chip stocks this year through July 31 were Salesforce, Apple and Microsoft, posting rallies of 69.7%, 51.2% and 40.1%, respectively.
The worst three Dow Jones stocks through July 2023 were Walgreens Boots Alliance (WBA), Amgen (AMGN) and Verizon Communications (VZ), with respective declines of 19.8%, 13.5% and 10.9%.
The tech-heavy Nasdaq rose 37.1% through July 31, and the S&P 500 gained 19.5%. The Dow Jones Industrial Average rose 7.3% 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 U.S.
Best Dow Jones Stocks To Watch
| Company Name | Symbol | Closing Price | YTD Performance |
|---|---|---|---|
| Apple | (AAPL) | 196.45 | +51.2% |
| Boeing | (BA) | 238.85 | +25.4% |
| Caterpillar | (CAT) | 265.17 | +10.7% |
| Salesforce | (CRM) | 225.01 | +69.7% |
| Microsoft | (MSFT) | 335.92 | +40.1% |
Source: IBD Data As Of July 31, 2023
Amid the current stock market uptrend — according to the IBD Big Picture — investors should focus on top stocks that show strong relative strength. These could continue to be 2023 market leaders if the Dow Jones Industrial Average is able to extend recent gains.
The best Dow Jones stocks to buy and watch in August near buy points include Apple, Boeing, Microsoft, Salesforce and Caterpillar.
Stock Market ETF Strategy And How To Invest
Apple Stock
Apple stock remains just off all-time highs Tuesday, after ending slightly lower. The stock continues to hold sharply above a 157.38 buy point. On Wednesday, AAPL stock was down 1.4%. Earnings are due out Thursday afternoon.
According to the IBD Stock Checkup, Apple stock shows a 90 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.
Boeing Stock Is A Dow Jones Stock Leader
Boeing lost 0.35% Tuesday, snapping a four-day win streak. Shares remain above their flat base’s 223.91 buy point, according to IBD MarketSmith pattern recognition.
Boeing shares fell 2.5% Wednesday, falling back into buy range.
Microsoft Stock
Microsoft shares soared above a flat base’s 276.86 buy point and out of buy range during recent months.
Last week, Microsoft shares tumbled after the software giant offered a disappointing sales outlook and disclosed increased capital spending requirements for its artificial intelligence initiatives. Still, the company beat expectations for its fiscal fourth quarter, thanks to continued growth in its cloud computing businesses.
Shares sold off 2.4% Wednesday, as they threaten to give up support around their 50-day line. A strong bounce would place the Dow Jones leader in a new buy area.
Salesforce’s Recent Breakout Struggles
Salesforce gave up its 225.00 flat-base entry, according to IBD Leaderboard analysis, in recent sessions.
CRM stock lost 2% Wednesday, falling further below the latest buy point.
Caterpillar Stock
Dow Jones stock Caterpillar finished Tuesday further out of buy range beyond a 250.89 buy point in a cup with handle after the company’s better-than-expected earnings results.
CAT stock reversed 0.6% lower Wednesday.
Tip: Before making investment decisions, be sure to check current market conditions, and use IBD Stock Checkup to see if your stock gets good ratings for the most important fundamental and technical criteria. To get ongoing chart analysis and trading 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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