Dow outperforms other indexes
The Dow Jones Industrial Average registered minor gains on March 25, while other major US indexes fell. The index rose by ~15 points, or ~0.1%, yesterday, while the NASDAQ Composite and the S&P 500 indexes fell 0.1% each.
Dow’s outperformance was mainly due to a decent rise in its highest-weighted stock, Boeing (BA). The industrial conglomerate (XLI) gained 2.3% on March 25. At 9.8%, Boeing has the highest weight in the 30-stock index. The airplane manufacturer has contributed about 30% to the Dow’s 9.4% YTD gain. Excluding Boeing’s contribution, the Dow’s YTD returns would be -6.6%.
An increase in stock prices of some other heavyweights also supported the Dow’s gain yesterday. Caterpillar (CAT) and Home Depot (HD), which have 3.5% and 5% weights in the 30-stock index, recorded increases of 1.6% and 0.9%, respectively.
However, a decline in Apple (AAPL) and 3M Company (MMM) weighed on the Dow’s overall performance. Apple and 3M have a cumulative weight of 10.4% in the Dow 30 index. Apple and 3M fell 2.3% and 1.5%, respectively.
The majority of US stocks ended Monday in the red, while indexes kept moving between slightly positive and negative territory as investors continued to fear a possible slowdown in global economic growth. Investors were keeping a close watch on the US Treasury market, which could mean uncertain economic times are ahead.
The benchmark ten-year Treasury yield note fell to its lowest level since December 2017, creating an inverted yield curve, CNBC reported. An inverted yield curve denotes a high possibility of US recession.