Strong start to Q3 earnings propels Dow Jones Industrial Average to record highs, led by top stocks

From Nasdaq: 2024-10-17 10:30:00

The Dow Jones Industrial Average hit record highs on a strong start to Q3 earnings, up 14.3% this year. DIA, tracking the index, gained 15%, with top-performing stocks including JPMorgan, Goldman Sachs, Honeywell, McDonald’s, and Apple.

Q3 earnings season kicks off strong, with S&P 500 members reporting 5.2% earnings growth and 4.9% higher revenues. 81.3% beat EPS estimates, and 72.9% beat revenue estimates, outperforming previous periods.

The latest jobs and inflation report shows stellar growth, with the US adding 254,000 jobs and unemployment dipping to 4.1%. Inflation dropped to 2.4% in September, boosting investor confidence in economic health.

Lower rates from the Fed benefit stocks, encouraging growth in cyclical sectors like industrials and financials. DIA stands to benefit from this trend, with lower rates reducing borrowing costs and encouraging economic expansion.

Top-performing stocks in DIA include JPMorgan, Goldman Sachs, Honeywell, McDonald’s, and Apple, each seeing gains in the past week. With strong expected earnings growth rates and significant positions in the DIA portfolio, these companies are leading the charge.



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