Dow Jones stocks gear for a hefty week of earnings, as nearly half the index's 30 components are due to report. The reports arrive just as many U.S. giants slow spending as inflation takes a toll on consumer optimism. And with the Federal Reserve set to dig deeper into its inflation fighting tool kit, the potential for at least some degree economic slowdown or recession looms on the not-too distant horizon.
The coming week will reveal more about the economy's state of health. Nearly half the Dow Jones stocks report earnings, including these five strong or relatively strong performers year to date: Visa, Coca-Cola, McDonald's, Chevron and Merck.
Apple and Microsoft are also due.
Collectively, the Dow Jones Industrial Average reversed 0.6% lower Friday July 22, snapping three days of gains but still rising 1.8% for the week. The blue-chip index clocked its first weekly close above the 10-week moving average for the first time since April.
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Dow Jones Stocks: Warren Buffett Is A Fan
Apple stock, Coca-Cola, Chevron, Visa and Merck can be found in investing legend Warren Buffett's Dow-stocks heavy portfolio.
Investors favor Dow stocks like Apple for steady earnings growth and consistent dividends. Not to mention their resilience in challenging markets like the current one.
The latest Dow Jones earnings from Friday are mixed: American Express beat and signaled travel spending is back. But Verizon, disappointed and warned on cash flow.
Here's what to what from the next set of Dow industrials:
Coca-Cola Earnings, KO Stock
Early Tuesday, the beverage giant is likely to post a 1.6% EPS decline on a 4.5% revenue gain. It has been helped by acquisitions and a rebound from the pandemic, as well as trendy wellness and energy drinks.
Shares gained 0.5% on the stock market today. GE stock lost 1.5% last week. That extended a two-week decline that took KO stock below the 10-week line. It now sits 8% under a 67.30 buy point from a flat base.
Warren Buffett likes Coke — both the soda and shares. The Berkhsire chief began gathering Coca-Cola stock, which has grown dividends for 61 years, in 1988.
McDonald's Earnings, MCD Stock
Also early Tuesday, the burger chain should deliver a 4.2% EPS gain despite a 1% sales drop. McDonald's faces tough comps and also exited Russia, a big market, after 32 years following the Ukraine invasion.
McDonald's gave up 1.7% Monday. Shares rose 0.3% Friday but eased 0.9% for the week. MCD stock snapped a four-week rally that took shares above the 10- and 40-week averages. It's now 8% below a 271.25 entry.
Buffett loves his McDonald's breakfast and years ago rued his decision to sell MCD stock.
Visa Earnings, Visa stock
Late Tuesday, Wall Street expects Visa earnings to jump 17% a share as revenue grows 15%. Like Amex, Visa should benefit from the return of consumer and corporate travel after the Covid pandemic. But the rapid rise in the dollar is a potential headwind to multinational earnings.
Visa added 0.2% Monday. Shares dipped 1.1% Friday but advanced 1.8% to 213.84 for the week. A three-week rally has seen V stock reclaim the 10- and 40-week lines. After a yearlong consolidation, Visa is far from a valid buy point.
It's not easy to build a globe-spanning payment processing network — one reason why Buffet owns the trio of Visa, Mastercard and American Express.
Merck Earnings, MRK Stock
Early Thursday, Merck is expected to deliver a 29% EPS increase and 21% revenue gain. The drugmaker has been racking up cancer drug approvals in the EU and the FDA OK'd limited use of its Covid-19 pill.
Merck rose 0.4% Monday. Shares were unchanged Friday but lost 5.1% for the week to 90.11. MRK stock snapped two weeks of gains and also undercut the 10-week average. Merck very briefly cleared a 95.02 flat-base buy point early this month, but is trading 5% under the entry now.
While Buffett has soured on drug stocks, he rebought Merck in Q1, not long after selling the Keytruda cancer drugmaker.
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Chevron Earnings, CVX Stock
Early Friday, the oil major should post a 197% EPS boom on a 56% sales gain. Chevron, like much of the oil industry, has gained on rising oil prices, which were driven higher by Russia's invasion of Ukraine.
Chevron rose 2.7% Monday. Shares shed nearly 1% Friday but climbed 4.6% on the week, closing above 144. The rally took CVX stock back above its 40-week line after two down weeks. Chevron remains below the 10-week line after its latest breakout failed, with no new buy point so far.
CVX stock continues as the best Dow Jones stock year to date, with a 22.9% gain as of July 22. In Q1, Buffett's Berkshire grew a stake in Chevron by 316% and also bought Occidental Petroleum, which he continues to load up on.
