Why You Should Put These 5 Dow Giants On Your Watch List Now: S&P 500 Futures

Why You Should Put These 5 Dow Giants On Your Watch List Now: S&P 500 Futures

Futures for the S&P 500 index were little changed late Monday. Microsoft ( MSFT ), Caterpillar ( CAT ), Intel ( INTC ), 3M ( MMM ) and UnitedHealth Group ( UNH ) are top-performing Dow industrial components that are consolidating bullishly, but do not offer buy points at the moment.

[ibd-display-video id=2957688 width=50 float=left autostart=true]Microsoft, Caterpillar, Intel and UnitedHealth all have Composite Ratings of at least 90. UnitedHealth offered mixed 2018 guidance late Monday.

S&P 500 index futures were essentially flat vs. fair value. Nasdaq 100 futures were just above break-even. Dow futures fell a fraction.


Microsoft has been trading tightly for the past several weeks since gapping higher on Oct. 27 following its latest earnings report. That suggests it could be forming three-weeks-tight pattern. But Microsoft has not been a volatile stock, so short-term tight action is nothing special. Wait for a proper flat base or other bullish consolidation to form, with a likely potential buy point of 86.30.

Microsoft rose 0.7% to 83.87 in Monday’s stock market trading .


Caterpillar also has been consolidating in a narrow range since gapping out to a record high on Oct. 24 on its blowout earnings. The heavy-construction and mining-equipment giant could be working on a flat base, with a likely entry of 140.54. Caterpillar dipped 20 cents to 137.19 on Monday.


Intel fell 0.6% to 44.49 on Monday. The chip giant has been pulling back modestly since hitting a record 47.30 on Nov. 3 following strong earnings in late October and a breakout at the start of last month. Intel is finally diversifying from the PC market, with solid growth in chips for data centers. Intel’s Mobileye acquisition gives it a big foothold in autonomous-driving systems, including several key alliances.


UnitedHealth hit 213.83 on Nov. 3 after moving higher following its late-October earnings report. On Monday, shares briefly rose to a record 214.25 but closed down 11 cents to 212.40, below the high of the left side of its proto-consolidation. That means UnitedHealth could still carve out a flat base based on the Nov. 3 high.

Shares dipped to about 209 late Monday after the health insurer updated 2018 guidance. It sees earnings per share of $10.55-$10.85 with revenue at $223 billion-$225 billion. Analysts expected EPS of $10.80 and revenue of $218.65 billion.


The diversified industrial giant hit a record 238.90 on Oct. 24 following strong earnings and guidance. 3M has been consolidating since then, rising 1.1% to 234 on Monday.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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