While the delta-variant-driven resurgence of COVID-19 cases in the U.S. knocked the (DJIA) from its record-high last month, weaker-than-expected job reports have sparked market optimism as investors anticipate that the Fed might delay the tapering of its bond purchases to continue to bolster economic recovery. Because the DJIA could regain its upward momentum in the coming weeks, we think some of its component companies, namely UnitedHealth Group (UNH), McDonald’s (MCD), Honeywell International (HON), and Walgreens Boots Alliance (NASDAQ:), could be great additions to one’s portfolio. Let’s discuss.After the Labor Department’s hiring report stated that U.S. employers added only 235,000 jobs in August, barely one-third of the consensus forecast of 730,000 jobs added, global stock markets and Wall Street futures climbed on Monday, supported by expectations that the Federal Reserve may postpone the withdrawal of economic stimulus. Although the Dow Jones Industrial Average (DJIA) declined yesterday on concerns surrounding the Delta Variant’s impact on the economic recovery, some investors and analysts remain optimistic.
Officials indicated that the Fed might decide this month on when to initiate tapering of its bond purchases. Because employment is a crucial factor, the Fed wants to ensure that an economic recovery is enroute for sure. This position has fostered positive investor sentiment. The Fed’s postponement in reducing bond purchases will ensure capital continues to flow in the financial system to aid economic recovery.
Given this backdrop, we think it could be wise to bet on fundamentally sound Dow Jones stocks UnitedHealth Group Incorporated (NYSE:), McDonald’s Corporation (MCD), Honeywell International Inc. (NASDAQ:), and Walgreens Boots Alliance Inc. (WBA).
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