The biggest reporting week of the season for Dow Jones Industrials stocks begins Tuesday, when Verizon, Johnson & Johnson, Procter & Gamble and 3M all deliver results. It is one of the season's biggest reporting days for Dow Jones stocks. The four blue chips represent not quite 8% of the total weighting of the Dow, totaling nearly $965 billion in market capitalization.
Just for perspective, managed care provider UnitedHealth Group, which reported on Jan. 12, is the "heaviest" Dow Jones stock — accounting for nearly 9% of the index by weight. Apple, of course, has the index's largest market capitalization, crossing above $3,011 trillion this week. Apple reports on Feb. 1.
IBM follows up with its quarterly results on Wednesday. Then Intel, Visa and American Express on Thursday and Friday, bringing the total Dow count for the week to nine.
Dow Jones Stocks Face Low Expectations
All together, that is nearly a third of the benchmark's total 30 stocks. For the first round, on Tuesday, analyst expectations set a low bar. Procter & Gamble is forecast to deliver a 7% rise in earnings and a 3% revenue uptick. That is enough to maintain its positive track record, but a slowdown from recent results.
Adhesives, tapes and medical and office supplies maker 3M, based in the greater St. Paul, Minn. area, is forecast to turn in a minor earning increase and a 5% drop in revenue.
Among the others, views see Johnson & Johnson snapping a three-quarter winnings streak with earnings and revenue declines. Verizon is expected to continue its recent trend of lower earnings, lower revenue.
3M, Verizon and J&J Charts
For the most part, the circumstances mean that even minor beats or upticks in management outlooks could generate positive investor response. That could be meaningful for several of the stocks.
3M is sitting in a four-weeks-tight pattern with a buy point at 110.66. The stock was not quite 3% below that entry on Monday.
Verizon is still in a buy zone, above a 38.88 buy point in what MarketSmith identifies as a 48-week cup-with-handle base. The buy zone extends to 40.82.
J&J is arguably below a buy point in a cup-with-handle base. The base formed almost entirely below the 10-week moving average, which is a sign of weakness. But the handle formed neatly above that moving average, so the stock is at least trying.
IBM, Intel and American Express are different animals, with IBM and Intel in the midst of hard core rallies. American Express appears ready to possibly launch into one of its own. Expectations for these three Dow Jones leaders are very different from for blue chips reporting in the first half of the week. For more specific details on these three companies, check back with IBD later in the week.
