The Dow Jones Industrial Average jumped higher on Monday after closing out the best week of the year so far. The flagship index gained 1,168 points last week, marking a five percent gain.
Even Donald Trump praised the stock market’s huge run-up, triggered by hopes for an interest rate cut at the Federal Reserve.
Dow Jones has best week of the year!
— Donald J. Trump (@realDonaldTrump) June 7, 2019
The Dow looks poised to shoot higher again this week as the president signed an agreement with Mexico over the weekend. The deal relieves Mexico from tariffs that would have come into effect on Monday.
While the market as a whole jumps higher, let’s dive a little deeper. Which Dow Jones stocks are driving the market’s strong run-up?
Killer Dow stocks in 2019
- Microsoft +29.37%
- Cisco +29.08%
- Visa +28.88%
- American Express +27.06%
- Disney +25.89%
- Traveler’s Companies Inc +24.87%
- United Technologies +24.11%
*All figures are year-to-date gains, per CNN.
1. Microsoft +29.37%
Microsoft is the front-runner in the Dow, with last week’s rally pushing it over the $1 trillion market cap barrier. Microsoft is now the most valuable company on the planet, overtaking Apple and Amazon. Both of which have teased the $1 trillion mark in the last 12 months.
MSFT surged almost ten percent in last week’s record-setting rally alone to hit all-time highs. The Bill Gates empire is likely benefiting from the antitrust investigations plaguing Google, Facebook, Amazon, and Apple. Microsoft is one of the few major tech companies not under investigation.
2. Cisco +29.08%
Up 7.5 percent last week, CSCO is enjoying a resurgence after becoming profitable in recent years. Cisco is also seen as a strong stock in the event of an all-out trade war with China. The company derives only 3 percent of revenue from China and would benefit if the US pursues a ban on Huawei.
3. Visa +28.88%
Visa is another company poised to weather the Sino-American trade war. Morgan Stanley called Visa a “national champion” that would flourish in the US even if global tension flare. The stock has outperformed the Dow and S&P so far this year.
4. American Express +27.06%
Much like Visa, American Express is expected to perform strongly in a world of “slowbalization;” a term used by Morgan Stanley to describe the increasingly nationalist policies of major superpowers. As trade war tensions flared through 2019, AXP outperformed the market.
5. Disney +25.89%
Walt Disney stock has had a storming year so far powered by the movie studio. With two blockbuster movies behind them (Avengers: Endgame, Captain Marvel), the 2019 lineup still looks strong: Star Wars: The Rise of Skywalker, Frozen 2, The Lion King, and Toy Story 4.
Throw in the forthcoming Disney+ streaming service and a new Star Wars theme park, and traders are wildly optimistic about this Dow stock.
6. Travelers Companies Inc +24.87%
The insurance giant is on a year-to-date tear, pushing close to its 52-week high at the end of last week. A break above this could see the stock tick higher again.
7. United Technologies +24.11%
United Technologies has enjoyed a huge stock run-up this year, and it’s about to get better. The aircraft company announced a monster merger with Raytheon on Sunday. The stock is up 4 percent in Monday’s pre-market trading session.