The Dow fell about 80 points in mid-afternoon trading Monday, but is still up 14% this month — putting it on track for its best monthly gain since January 1976.
However, the blue chips continue to fall nearly 10% this year. Meanwhile, the S&P 500, which fell about 0.6% on Monday, is down nearly 20% in 2022. The tech-heavy Nasdaq, which was nearly 1% lower on Monday, is down 30% this year.
Still, it’s fitting that candy maker Hershey (HSY) trades at an all-time high on Halloween, up 25% this year. But overall, there haven’t been too many sweet kisses for investors this year: Despite a ferocious rally so far in October, there will be far more losers than winners on Wall Street in 2022.
Major tech, industrials and consumer durables will be hit hard in 2022. Intel (INTC), Nike (NKE), Salesforce (CRM), Microsoft (MSFT), 3M (MMM), Boeing (BA), Disney (DIS), Walgreens ( WBA), Home Depot (HD), Cisco (CSCO), and Verizon (VZ) are all down more than 25% in 2022. That’s nearly half of Dow’s stock.
Tech is also being crushed in the S&P 500. Facebook owner Meta Platforms is down more than 70% this year and is now trading at its lowest level since January 2016. PayPal (PYPL), chip giant Nvidia (NVDA) and Netflix (NFLX) have also all lost more than half of their value.
But besides Hershey, there are a few other winners. Oil stocks and healthcare companies lead the market, with Chevron (CVX), Merck (MRK) and Amgen (AMGN) topping the Dow leader list.
Chevron is even trading near an all-time high. So does rival (and former Dow division) Exxon Mobil (XOM). Big Pharma leader Eli Lilly (LLY) and health insurers Cigna (CI) and Humana (HUM) are also at record highs.
It’s not just energy and healthcare stocks that have posted solid gains this year. Several consumer goods companies – companies that sell food and beverages – are also doing well. McDonald’s (MCD), Pepsi (PEP) and grain producers General Mills (GIS) and Post (POST) recently hit record highs.
Also in the all-time high club: defense contractors Lockheed Martin (LMT) and Northrop Grumman (NOC), insurers Metlife (MET) and Progressive (PGR), auto parts retailers Autozone (AZO) and O’Reilly Automotive (ORLY ) and wireless giant T-Mobile (TMUS).
There is a saying on Wall Street that there is always a bull market somewhere. This list of well-known brand stocks trading at record highs is further proof of that point.
Still, the broader market is undeniably struggling this year due to inflation concerns and the fact that the Federal Reserve has raised interest rates significantly to try to beat the scourge of rising prices.
There are growing concerns that the Fed was too late to fight inflation and threatens to plunge the economy into recession next year as it appears to be catching up with its series of aggressive rate hikes.