Dow's valuation looks cheap, but tangible book value erosion signals real downside risk if stress persists or losses emerge. Dividend sustainability is in question, as current payouts are funded by debt or cash depletion, risking further equity erosion or a necessary dividend cut. Even with a 60% dividend cut, price support depends on investor sentiment and confidence in an earnings turnaround, which remains uncertain.
The latest trading day saw Dow Inc. (DOW) settling at $27.15, representing a +1.23% change from its previous close.
Nike stock slipped after beating Q4 estimates, as traders remain cautious on its turnaround and the retail forecast across US stocks and Dow Jones indices.
Global stocks rise
Global stocks rally; Iran says it will halt attacks as long a Israel does
Cisco (NADSAQ:CSCO) and Home Depot (NYSE:HD) are more traditional value stocks that investors may wish to punch their ticket to if there's concern about the S&P 500's valuation.
The escalation by the Americans in Iran could have caused chaos if the bombing were done during the week. However, the weekend has given markets enough time to digest the news.
Analysts say they don't expect significant crude supply disruptions
The latest trading day saw Dow Inc. (DOW) settling at $30.57, representing a +2.24% change from its previous close.
Contracts tied to the Dow fell 453 points, or 1%. S&P futures dropped 57 points, or 0.95%, while Nasdaq futures declined 273 points, or 1.23%.
Blue-chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history.
In the most recent trading session, Dow Inc. (DOW) closed at $29.39, indicating a +2.94% shift from the previous trading day.