The Dow Jones steered past the 27,000 mark for the first time in its 120-year history, thanks to healthcare shares. The Trump administration’s scrapping of a plan designed to control prescription drug prices boosted health insurers. To top it, Fed chief Jerome Powell’s reaffirmation of a rate cut helped the index move up. Hence, it makes sense to invest in solid blue-chip stocks that can make the most of a Dow rally.
Dow Closes Above 27,000 for the First Time
The Dow gained 227.88 points, or 0.9%, to close at 27,088.08 on Jul 11. The 30-stock index closed above the 27,000 mark for the first time. It took nearly 372 days for the blue-chip index to cross the 27,000 mark from when it reached the 26,000 mark in January 2018. Such stellar gains helped the index register a gain of 16% so far this year. Lest we forget, the Dow has recorded its best first half since 1999 and best June since 1938.
Some of the prominent Dow components that drove the index to a 27,000 milestone include Visa Inc. (V – Free Report) and Microsoft Corp. (MSFT – Free Report) . Since January 2018, shares of Visa have jumped a whopping 50%, rising to $180.74 a share from $121.98. Visa benefitted immensely from its Visa Europe acquisition, increasing business volumes, investment in digital technology and a solid balance sheet.
Shares of Microsoft too climbed more than 54%, trading at $138.40 from $90.14 a share at the close of trading on Jan 17. The company’s new subscription model, Azure, and other promising new products boosted its cash flows.