In a watershed year for the stock market, Dow Jones Industrial Average (DJI) or Dow 30 index may still have something to talk about. Dow 30 was down by 8.78% over the last 1-year period as against some major fall witnessed by its peer indices. On January 3, 2022, the first trading day for the year, Dow 30 closed the session at 36585.06, while on December 30, the last trading day of 2022, the index closed at 33,147.25, lower by 9.39%. The 52-week range for Dow 30 is 28,660.94 – 36,952.65.
Merck, The Travelers Companies, Amgen, Caterpillar, Coca-Cola were among the few that withstood the meltdown in the US stock market and delivered index-beating positive returns. Chevron Corporation was the biggest gainer on the Dow 30 list of companies generating over 50% in 2022.
Salesforce, Walt Disney, 3M Company, NIKE, Microsoft Corporation, Verizon Communications were among the top losers of Dow 30 in 2022. Intel Corporation ended up as the biggest loser of Dow 30 dropping almost 50% in 2022.
Also Read: 4 big themes that will shape stock market investments in 2023 and beyond
A stock is included in the Dow 30 index if the company has a great reputation, exhibits persistent growth, and is of interest to a sizable number of investors, unlike other indices whose selection is regulated by quantitative standards. The index, which is made up of the top 30 blue-chip corporations, serves as a gauge for the US economy, its industries, and consumer trends.
Also Read: What should investors in US technology stocks do in 2023?
Interestingly, Dow 30 is up by 15% over the last 3 months. Unlike the tech sector stocks, the Dow 30 represents the old economy companies and despite rising inflation, and interest rates, the performance of stocks will hinge largely on the US GDP growth in 2023.
A resilient economy and a soft landing of the recession may provide a boost for the index stocks. “The strength of the labor market, consumers continuing with their spending and inflation trajectory will play key roles in determining how much the economy slows in 2023. However, the risk of a deep recession similar to that of 2008 is low,” says Siddharth Srivastava, Head – ETF Products, Mirae Asset Investment Managers (India).