The Dow Jones 30: The Best And Worst Performers In 2018
When it comes to trading commodities, stocks and similar, every investor has their own preferred market The Dow Jones Index is just one of these, but is made up of some of the most prominent and highestperforming companies from around the globe
When it comes to trading commodities, stocks and similar, every investor has their own preferred market. The Dow Jones Index is just one of these, but is made up of some of the most prominent and highest-performing companies from around the globe. For this reason, following the best and worst performing on an annual basis seems to be a rite of passage for traders – so how did 2018 go for these companies, particularly in India? With a plummet in December, questions are being raised as to what could be the cause so here, we’re exploring exactly that.
The Dow Jones Industrial Average
While the Dow Jones Industrial Average (DJIA) certainly had a good year for the most part, even reaching record highs in October, towards the end of 2018 it didn’t appear to be doing overly well for itself. Despite appearing to be rising throughout the year, by the final few months, things plummeted – a shock for some of the leading companies used in the index. December, in particular, was a month that very few wanted to admit had come to fruition; The Dow was down 8.7%, creating the worst December they’d had since way back in 1931. While it wasn’t the only poor-performing index – the S&P 500 plummeted 9% - the companies and traders were eager to regain what had been lost.
While 2019 is already looking to be a better year in that sense, we’re taking a closer look at which companies may have caused the decline, and which may have helped it reach the highs throughout the year.
Microsoft is up 22% this year, outperforming practically all of the S&P 500’s gain. After beginning to move their business towards becoming a cloud-based entity both in terms of the business itself, and the products it provides. It’s this particular move that is generating the most revenue. Through Azure, Office 365 and Dynamics 365, Microsoft has raked in a rise of commercial cloud revenue of 58% over the year.
With a price change of 18.5% over 2018, Nike was one of the 13 components of the DJIA that saw positive price changes last year. With a long-term momentum pattern worth crying tears of joy over, those investing in the retail giant are sure to be jumping for joy over the last year. Things are set to keep rising for 2019, with stock forecast set at $100 minimum, with $130 by the end of 2019 and into 2020.
Goldman Sachs Group
With a -34.4% drop, Goldman Sachs did not have a very good year in terms of stock performance. Given that GS is the fifth-largest component of the index, it’s poor performance has certainly pulled the entire average down, shadowing the success of the more successful of the 30.
Despite seeing a great year for companies in the Information Technology sector, 2018 didn’t treat IBM quite as kindly. With a -25.9% drop, IBM's earnings this year aren’t nearly as high as in years previous. In fact, IBM has hit a four-year low in terms of stock pricing, and so they are certainly playing a part in the DJIA drop in 2018.
Whether 2019 will be a better year for the Dow Jones 30 has yet to be seen, but the pressure is on. Which companies will take the top spot at the end of 2019, and which will plummet? What do you think?