The Dow Jones index is having a good year. It has already jumped by more than 14% and is hovering near its highest level on record. The index also underperformed the tech-heavy Nasdaq 100 index for a substantial part of the year. This performance is mostly because of the strong corporate earnings, relatively dovish Federal Reserve, and the strong economic recovery. Here are the top-performing Dow Jones stocks YTD.
Generally, financial companies in the Dow Jones have done well this year as investors hope that tightening will come sooner than expected. American Express stock has been the best performing Dow Jones constituent this year. It has risen by more than 42.70% this year and by about 17.2% in the past three months.
This performance is because of the strong business fundamentals that support the firm. For example, the company said that its card member spending rose by 11% than in the same period in 2019. The firm also released about $675 million from its reserves.
Most importantly, analysts expect that the company’s earnings will keep rising when it publishes them tomorrow. They see sales rising by 24.45% and make more than $9.55 billion in revenue. For the year, they see sales rising to more than $39.63 billion.