An In-depth Analysis of the Dow Jones Industrial Average’s Annual Performance in 2023 and the Best Stocks to Watch in 2024

The Dow Jones Industrial Average (DJIA) is one of the oldest and most widely followed stock market indexes in the United States. Founded in 1896, the DJIA is composed of 30 blue-chip stocks that serve as a bellwether for the general U.S. stock market. In 2023, the DJIA ended the year at new highs, with the ongoing stock market rally continuing. In this article, we will provide an in-depth analysis of the DJIA’s annual performance in 2023 and highlight the best stocks to watch in 2024.

The DJIA ended January 2023 at new highs, with the best performing stocks being Apple (AAPL), Merck (MRK), Microsoft (MSFT), and Visa (V). The tech-heavy Nasdaq rallied 43.4% in 2023, and the S&P 500 gained 24.2%. The DJIA rose 13.7% in 2023.

Clear winners and losers emerged at the start of February 2023. The top three performing blue-chip stocks in 2023 were Salesforce (CRM), Intel (INTC), and Microsoft, posting rallies of 98%, 90%, and 56%, respectively. On the other hand, the worst three Dow Jones stocks in 2023 were Walgreens Boots Alliance (WBA), Chevron (CVX), and Johnson & Johnson (JNJ), with respective declines of 30, 16%, and 11%.

What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average is one of the oldest stock market indexes, founded in 1896 with 12 stocks. It is designed to serve as a bellwether for the general U.S. stock market. Other major stock indexes include the technology-heavy Nasdaq composite and the S&P 500 index, an index of the 500 largest companies in the U.S.

Best Dow Jones Stocks to Watch in 2024
Company Name Symbol Closing Price 2023 Performance
Apple (AAPL) 193.42 +48%
Intel (INTC) 41.92 +90%
Microsoft (MSFT) 372.52 +56%
Visa (V) 254.61 +25%
Salesforce (CRM) 251.02 +98%

Today’s Dow Jones Movers
Among the Dow Jones Industrial Average stocks, Amgen (AMGN) was among Friday’s biggest gainers, up 1.3%. Amgen shares are rebounding after big losses in recent weeks. On the downside, Apple was the biggest loser, falling 1% Friday.

Amid the current stock market rally, investors should focus on stocks that show strong relative strength. These could again become 2024 market leaders if the DJIA is able to extend its recent gains. The best Dow Jones stocks to buy and watch in 2024 include Apple, Merck, Microsoft, and Visa.

Dow Jones Leader: Apple Stock
Among Dow Jones stocks in the Magnificent Seven, Apple fell 0.9% Friday. Shares are sharply below their 50-day line as a new flat base is forming for the tech giant. The new buy point is 199.62. According to the IBD Stock Checkup, Apple stock shows a 91 out of a best-possible 99 IBD Composite Rating.

Merck Stock
Drug giant Merck is breaking out past a 119.65 cup-base buy point. Merck shares gained 0.7% Friday, further out of the 5% buy area above the entry.

Microsoft Stock
Microsoft stock is moving back out of buy range past a flat base’s 384.30 buy point amid recent gains. Shares fell 0.3% Friday, still out of the 5% buy area that went up to 403.52. In recent weeks, Microsoft beat Wall Street’s targets for its fiscal second quarter thanks to strong cloud computing business.

Visa Stock Hits New High
Payments leader Visa is extended past a cup base’s 250.06 buy point after a mid-November breakout. V stock rose 0.1% Friday.

Tip: Before making investment decisions, be sure to check current market conditions, and use IBD Stock Checkup to see if your stock gets good ratings for the most important fundamental and technical criteria. To get ongoing chart analysis and trading signals, check out the unique features, stock lists, and chart annotations at MarketSmith, Leaderboard, and SwingTrader.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on Dow Jones stocks and the stock market.

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Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.

Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets.

Ownership data provided by Refinitiv and Estimates data provided by FactSet.

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