The 10 Stocks Dragging Down the Dow in 2016

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The Dow Jones Industrial Average is up 4.01% this year to 18,123.80, hovering near record territory. Yet the following 10 of its components are down in 2016, which means they have kept the Dow from breaking much higher.

Company    Price    2016  Change
American Express Co. (NYSE: AXP) 63.66 −8.47%
Boeing Co. (NYSE: BA) 126.70 −12.37%
Coca-Cola Co. (NYSE: KO) 42.14 −1.91%
Walt Disney Co. (NYSE: DIS) 92.56 −11.91%
General Electric Co. (NYSE: GE) 29.68 −4.72%
Goldman Sachs Group Inc. (NYSE: GS) 166.00 −7.90%
Home Depot Inc. (NYSE: HD) 126.11 −4.64%
JPMorgan Chase & Co. (NYSE: JPM) 65.82 −0.32%
McDonald’s Corp. (NYSE: MCD) 115.28 −2.42%
Nike Inc. (NYSE: NKE) 55.18 −11.71%

What’s happened?

Several are easy to decode. Boeing has disappointed investors with flat revenue, fraud accusations and glitches with some of its planes.

American Express has posted slightly better results lately. However, worry remains that Visa Inc. (NYSE: V), MasterCard Inc. (NYSE: MA), banks cards and new types of mobile payments will continue to chip at its top line. Its premium image has not helped it in a time when ease of use overshadows special benefits.

Disney has been the victim of the impression that, like many other huge entertainment companies, cord cutting, new media businesses like Vice and BuzzFeed, and an internet that has been filed with high-quality content will damage its cash cows, particularly ESPN.

GE cannot shed its image as a botched conglomerate that always has one or two troubled divisions and refuses to break itself up.

Goldman Sachs does not have a single major division that is not in choppy waters. Its trading prowess has been eroded by regulation, the IPO market is dry and the competition to fund companies is fierce.

McDonald’s turnaround is in danger of stalling. The brilliant breakfast all day and lower calorie menu kept its smaller rivals from taking more of its market share. Recent earnings and store sales have blunted its advance.

Nike was the king of the sports shoe and athletic wear industry for decades. Enter Under Armour Inc. (NYSE: UA) and a revitalized Adidas.