Nearly Half of DJIA Stocks Down Over 10% Or Approaching -10% From Highs (AA, BAC, CAT, DD, GE, HD, HPQ, JPM, MSFT, CVX, DIS, XOM, INTC, WMT, DIA, VZ, UTX, MMM)
Did you heed the call “Sell in May and Go Away!” this year? It turns out that as of mid-day we now have nearly half of the 30 Dow Jones Industrial Average components either trading down over 10% or which are close to being down 10%. The group that is already down 10% includes shares of Alcoa Inc. (NYSE: AA), Bank of America Corporation (NYSE: BAC), Caterpillar Inc. (NYSE: CAT), EI DuPont de Nemours & Co. (NYSE: DD), General Electric Co. (NYSE: GE), The Home Depot, Inc. (NYSE: HD), Hewlett-Packard Co. (NYSE: HPQ), J.P. Morgan Chase & Co. (NYSE: JPM), and Microsoft Corporation (NASDAQ: MSFT). Chevron Corporation (NYSE: CVX), The Walt Disney Company (NYSE: DIS), Exxon Mobil Corporation (NYSE: XOM), Intel Corporation (NASDAQ: INTC), and Wal-Mart Stores Inc. (NYSE: WMT) are all now within striking distance of being down 10% from recent highs as they are down 7.5% or more.
As far as how these compare to the DIA itself, the level of 12,277 is down 5.03% from its 52-week high of 12,928.50. The DJIA is still up almost 28% from its year lows. We have taken a look at each component, offered performance metrics, offered color if applicable, and even shown some expectations.
Alcoa Inc. (NYSE: AA) is now down over 12% from its highs, but it is still up 65% from the year-lows. At $16.19, its 52-week range is $9.81 to $18.47. The sell-off in metals helped, but so did a fake rumor that it might be acquired. In fairness, Alcoa shares might not have gotten so high without the buyout rumors. The slowing of growth in China and India have played a part as well. Thomson Reuters still has a consensus price target of $20.26 and Alcoa yields only about 0.7% today.
Bank of America Corporation (NYSE: BAC) is fresh off the heels of this Moody’s rating action but its shares are actually up so far today. At $11.30, it is down over 29% and shares were down over 30% from the year-high as the range is $10.91 to $16.10. Thomson Reuters has what feels like an unrealistic target of over $17.00 and the yield here is too small to even consider.
Caterpillar Inc. (NYSE: CAT) is now down about 11.8% from its high. At $102.54 it has a 52-week range of $54.89 to $116.55. Amazingly, shares are still up over 80% from its yearly lows. The global growth slowing is supposedly what is driving this now even if its orders are supposed to be in good shape. Its dividend yield is roughly 1.7% today.
EI DuPont de Nemours & Co. (NYSE: DD), or DuPont, has just crossed the -10% level today. At $51.05, its 52-week range is $33.73 to $57.00 and it sits down 10.2% from the year high and up over 51% from its yearly low. Chemicals are cyclical… At least this one pays a 3.1% yield to holders and Thomson Reuters has a consensus target of $63.10.
General Electric Co. (NYSE: GE) is actually up today and it just went to the -10% group this week. At $19.17 it has a 52-week range of $13.75 to $21.65. Shares are up over 39% from the year lows and down over 11% from the recent high. The nuclear energy woes are going to be hard to make up in the immediate future even if other areas are meant to offset it. GE offers a current yield of 3.1% and Thomson Reuters sees a consensus price target north of $24.00.