3 Stocks Leading the Dow This Week

Earnings season has begin and we're finally back to fundamentals driving the stock market. There were some big winners and some big losers, but at the end of the day, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up just 0.52% and the S&P 500 (SNPINDEX: ^GSPC  ) gained 0.71%. Here's what's happened with the Dow's biggest winners of the week.

Bank of America (NYSE: BAC  ) was up 7% to lead the Dow and was among the big banks reporting outstanding numbers during the second quarter. Revenue rose from $22 billion to only $22.7 billion, but net income jumped 63% to $4 billion, or $0.32 per share. Trading and investment banking income was strong across banks that reported this week, and the only downside was a cautious outlook about mortgage volume going forward. Interest rates have risen rapidly in the past two months, and that will keep buyers out of the market and cut the income banks can make from mortgages. The good news is that the rest of the industry is hitting on all cylinders.

DuPont (NYSE: DD  ) was up 5.6% on nothing more than the revelation that hedge fund manager Nelson Peltz is building a huge position in the company. Peltz didn't say much about why he bought the stock, except that the company makes him think of paint. He's alluding to the titanium oxide DuPont makes that's a key ingredient in paint. There was speculation that he may push for a spinoff of the division, but at this point, all he's done is load up on stock.

UnitedHealth Group (NYSE: UNH  ) rounds out the top three, climbing 5.1% after reporting a huge rise in customers and net income. At the end of the quarter it had 89.2 million people covered, up from 76.6 million a year ago. As a result, revenue jumped 12% to $30.4 million, and net income rose to $1.44 billion, or $1.40 per share. That was well ahead of expectations and shows that Obamacare may not be the negative element some expected for health insurers.

Obamacare will undoubtedly have far-reaching effect but so far insurers appear to be handling it well. The Motley Fool's new free report "Everything You Need to Know About Obamacare" lets you know how your health insurance, your taxes, and your portfolio could be affected. Click here to read more. 


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  • Report this Comment On July 20, 2013, at 6:12 PM, funfundvierzig wrote:

    Fellow FOOLS, Seeing shares of DuPont soar to a new 13-year high on Wednesday afternoon, July 17, 2013, you may have wondered...

    * Did DuPont announce a big splashing new blockbuster product or breakthrough technology?

    * Did DuPont announce the sale of Pioneer, its second-place and second-rate seed house?

    * Did ExxonMobil offer to buy the patent rights and technology to DuPont corn cob "gasoline" for $10 billion?

    * Did the Board of Directors fire its struggling, misfiring CEO, Ms. Ellen Kullman?

    No, none of the above. What shot the stock into the sky was the distinct possibility after 210 years this floundering, mismanaged conglomerate might be broken-up and sold off. Speaks volumes.

    ...funfun..

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