With the Federal Reserve finally committed to carve into interest rates decision, five Dow Jones components traded around buy zones Wednesday — Travelers, Verizon, McDonald's, Home Depot and Visa.
The Federal Reserve released its official statement at 2 p.m. ET, cutting rates for the first time since the Covid crisis. The Open Market Committee went with a 50-basis-point cut, at the high-end of investor expectations.
The Dow Jones Industrial Average is right at record highs. Going into Wednesday's rate cut decision, several Dow components traded modestly above buy points.
Dow Jones Stocks In Buy Zones
Travelers, the Dow Jones insurance company, was little changed early before dropping 0.8% to 239.72 Wednesday.
Travelers stock is 4% above an official 232.75 entry from a cup base, according to MarketSurge chart analysis. TRV shares have gained 28% this year and have rallied back 20% since hitting recent lows of 200.21 in late June.
The stock has a 91 Composite Rating out of a best-possible 99. The Dow stock also has an 86 Relative Strength Rating and a 92 EPS Rating.
Verizon dropped 0.4% to 43.89 Wednesday after the Fed decision.
VZ declined 2% to 44.08 on Tuesday, snapping a six-session win streak. Verizon stock is currently 2% above a 43.42 buy point from a flat base pattern. Shares have gained around 17% this year and is up more than 5% in September.
Verizon offers a fat dividend yield of 6.15%. High-dividend stocks are faring well in recent weeks as bond yields fall on a slowing economy and ahead of Fed rate cuts.
McDonald's has also roared back in recent weeks, with the Dow giant advancing 20% since it hit a low of 243.53 in early July. On Wednesday, MCD edged down 0.6% to 292.02, slightly below a 292.21 buy point from a saucer-with-handle base. On Tuesday, the Dow stock closed at 293.75.
Home Depot has also galloped into a buy zone after gaining 4% in September, adding to a 18% rally since hitting year lows in May. The Dow stock has formed a cup-with-handle base with a 378.58 buy point.
HD shares advanced 0.2% to 384.13 on Wednesday.
Meanwhile, credit-card giant Visa declined 1% to 288.46 Wednesday after clearing the 290.96 flat-base buy point on Tuesday, according to MarketSurge chart analysis.
Visa profits are expected to rise 13% this year before slowing to 12% growth in 2025. The Dow Jones stock is up 12% so far in 2024, lagging behind the S&P 500's yearly gain.
Please follow Kit Norton on X @KitNorton for more coverage.
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