Dow Jones Underperformers: Cisco, Walmart, Chevron, Walgreens

Dow Jones Industrials are in rally mode with a straight up look because the lows of late October, however there’s no “new excessive” just like the Nasdaq 100. Among the many 30 giant capitalization shares that make up the Dow, there are 4 names which have been an actual drag on the index this month.

Cisco Sytems, Walmart
WMT
, Chevron
CVX
and Walgreens Boots Alliance
WBA
are being offered in November at the same time as others have been making new 52-week. Every of the person names has a purpose nevertheless it’s clear that they’re weak point is conserving the Dow as an entire from maintaining with different key inventory market indexes.

The Cisco Methods
CSCO
each day value chart appears to be like like this:

After the corporate missed estimates for quarterly earnings and revenues, Wall Avenue funding managers took the information badly and offered shares. From a peak of $57.50 in early September to the present value of $48 quantities to a 16.5% drop in lower than 3 months.

The promoting quantity (the reddish bar beneath the worth chart) is big, a stable affirmation of the brand new down development. You’ll be able to see how the 50-day transferring common (the blue line) has turned downward and the way the 200-day transferring common (the pink line) has paused its upward path.

Right here’s the Walmart each day value chart:

That huge hole down in mid-November got here after the corporate’s chief monetary officer predicted weaker client spending for the remainder of 2023 after noting a “softening” of retailer gross sales in October. CFO
CFO
John Rainey informed analysts that it appeared as if clients had been nonetheless shopping for groceries however had much less curiosity in discretionary objects.

The inventory offered off to simply above its rising 200-day transferring common and managed to stay above the extent of its October sell-off, an indication of shopping for help down there. The 50-day transferring common is popping over after trending upward constantly since late March.

The each day value chart for Chevron is right here:

The drop within the value of oil is affecting the main power corporations and that features a big like Chevron. West Texas Intermediate Crude traded at $94 in late September and now goes for $77. Good for many who pump gasoline on the comfort retailer however makes the sector much less worthwhile.

Chevron dropped from a September peak of $170 and trades post-Thanksgiving day at $144. Those that bought shares on the excessive are actually sitting on a 3- month lack of 15%. The 50-day transferring common has crossed beneath the 200-day transferring common for a bearish vibe.

The Walgreens Boots Alliance each day value chart appears to be like like this:

The earlier yr’s $180 million loss continues to have an effect on the chain of 9000 shops as administration closes shops and reduces workers. Analysts at JP Morgan just like the modifications and, in October, upgraded the inventory from “impartial” to “obese” with a value goal of $27 to $30.

It’s one of many worst wanting value charts among the many Dow 30 with a relentless down development from the April excessive of simply above $34 to the current $21. Walgreens Boots Alliance is unable to rise above both its 200-day transferring common or its 50-day transferring common.

For comparability, right here’s the each day value chart for the Dow Jones Industrial Common: