Investors should consider blue-chip stocks like JPMorgan, Amazon, Apple, and Walmart for potential growth

From Yahoo Finance: 2024-07-16 08:13:00

2024 has been a great year for Wall Street, with the Dow hitting multiple record highs. Easing inflation has raised optimism for rate cuts, fueling the rally. On Jul 15, the Dow closed at a record high of 40,211.72 points, its 20th record close this year. Year to date, the index has gained 6.7%.

The rally has been driven by tech and semiconductor stocks boosting the S&P 500 and Nasdaq. The Dow has been slower but still impressive. Positive economic data has fueled the recent rally, with the CPI declining 0.1% sequentially in June and rising 3.3% year-over-year, the smallest increase since April 2021.

Inflation has resumed its climb, leading to expectations of rate cuts by the Federal Reserve. Chairman Powell mentioned the possibility of one rate cut in 2024, leading to hopes of improved market conditions. The latest FOMC projections hint at a 1% rate cut by 2025, taking the Fed funds rate down to 4.1%.

Investors should consider blue-chip stocks like JPMorgan Chase, Amazon, Apple, and Walmart, which are set to benefit from the market’s positive outlook. These stocks, with a Zacks Rank #1 or 2, have strong fundamentals and promising returns. JPM has assets worth $4.09 trillion, Amazon is a dominant e-commerce player, Apple has a strong Services portfolio, and Walmart has evolved into an omnichannel player.

Amazon, with an expected earnings growth rate of 57.9%, and Apple, with an expected growth rate of 7.5%, are solid stock picks for investors. Walmart, with an expected earnings growth rate of 9.5%, and JPMorgan Chase, with an expected growth rate of 1.7%, show promising potential for good returns. These companies are strategically positioned to benefit from the current market trends.



Read more at Yahoo Finance: 4 Blue-Chip Stocks to Bet on as Dow Hits Fresh All-Time High