The Dow Jones industrial average was launched in 1896. For decades, it was considered the primary benchmark of the equities market. However, it had too few stocks—only 30—to reflect that broad market. It was eventually replaced by the S&P 500, which was considered more representative because it included so many stocks from a broader range of market sectors. However, the Dow is often at the top of the market performance lists. For example, it is listed ahead of the S&P 500 among the indices displayed on MarketWatch’s financial site.
The Best and Worst Dow Stocks
So far this year, the Dow is up 4.5%, while the S&P 500 is 9.3% higher. The price increase spread among its components is huge. American Express Co. (NYSE: AXP) is up 26%, which puts it at the top of the list in terms of performance. Intel Corp. (NASDAQ: INTC) is at the bottom with a drop of 40%.
Intel was once the world’s most successful chip company, powering most personal computers and a large number of servers. Today, its technology is well behind that of Nvidia and AMD.
How long will it take for Intel’s stock to recover? Bernstein analyst Stacy Rasgon said, “And while we believe they are doing everything they can to try to repair things it is clear that the company is profoundly broken, and it will take years to see the fruits of their (currently exhaustive) labor, with success in their endeavors far from assured amid execution difficulties and structural headwinds.” He expects a turnaround to take until 2030. (Intel (INTC) Stock Price Prediction in 2030: Bull, Base, & Bear Forecasts)
Intel’s revenue was up 9% year over year to $12.7 billion in the most recent quarter. However, it continued its string of losses. The net loss was $0.09 per share in the most recent quarter, compared to a $0.66 loss in the year before. Just as bad, it forecast that in the current quarter, it would post a per-share loss of $0.05.
It Gets Worse
To make matters worse, the federal government made a decision that would hurt Intel’s financial prospects. According to The Wall Street Journal, the sales of some U.S. tech products to China had been blocked: “Intel said in a securities filing that it was notified Tuesday of a revocation of licenses to sell to a customer in China.” That company was the Chinese telecom Huawei. For Intel shareholders, the bad news just keeps coming.
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