As the DIA ETF hits a record high, here are its best stocks in 2024

The SPDR Dow Jones Industrial Average (DIA) ETF continued its remarkable bull run this year. It has soared for four weeks straight and is now hovering near its all-time high.  It was trading at $400 on Friday, up by over 135% from its lowest level in 2020.

Best-performing Dow Jones stocks

The DIA ETF has jumped sharply after signs emerged that the Federal Reserve will start cutting interest rates later this year because the US economy and inflation is slowing.

Data released this week showed that the headline and core inflation figures dropped to 0.3% in April this year. The two figures also dropped to 3.4% and 3.6%, respectively.

Further data revealed that the economy is slowing down. A report published on Thursday revealed that building permits dropped to 1.44 million and housing starts fell to 1.36 million. Manufacturing and industrial production figures also dropped by 0.3% and 0.1% in April.

More data showed that retail sales, consumer confidence, and manufacturing and services PMIs dropped sharply in April. Therefore, analysts believe that the Fed will deliver several rate cuts this year, which will supercharge the economy.

Rate cuts will also help to bring more assets to US stocks since investors have packed over $6 trillion in assets in government bonds.

The DIA ETF has also jumped because of the strength of the recent earnings season. Data by FactSet revealed that the average revenue growth of all S&P 500 companies soared to 5.4%, its highest point since Q2’22.

Most companies in the DIA ETF have jumped sharply this year. American Express (AXP) stock has soared by over 28% this year, helped by its remarkable revenue growth. As I wrote recently, AXP has severely outperformed companies like Visa and Mastercard.

Walmart stock price has soared by over 21% and is now sitting at its all-time high. This surge accelerated this week after the company published strong Q1 earnings. 

Amazon’s shares have risen by over 20% because of its strength in cloud computing, where it has a significant market share. The division continued seeing double-digit growth even as it competes with the likes of Google and Microsoft.

Goldman Sachs stock is up by over 20% after the company continued its transformation. It is exiting its loss-making consumer business and is seeing good growth in its investment banking division.

The other top-performers companies in the DIA ETF are Merck & Co, JPMorgan, Caterpillar, 3M, and The Travelers Company.

DIA ETF top performers in 2024

Top laggards in the Dow Jones

10 of the 30 companies in the Dow Jones have dropped this year. Intel’s stock price has dropped by over 36% this year as it continues to lag other semiconductor companies like AMD, Nvidia, and Taiwan Semiconductor. Investors are concerns about Intel’s continued expansion in the United States, Israel, and Europe.

Boeing is the second-worst-performing company in the Doe Jones this year as it tumbled by 30%. The company has moved from one crisis to another as concerns about its planes remain. It recently made a big loss and continued to lose market share to Airbus.

Meanwhile, Nike’s shares have retreated by 15% because of the company’s slow growth and rising competition from the likes of On Holding and Lululemon. 

The other top laggards in the Dow Jones ETF are firms like McDonald’s, Cisco Systems, Johnson & Johnson, and Honeywell.

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