The INDU--Old Economy--No Matter--Who Cares
I was watching WSW--for laughs--and saw some fellows
talking about the new economy there too. So I put the
INDUs into rough categories to see if they reflect the
economy. As you can see, they do not reflect one
industry. They reflect a fairly broad range for 30 stocks.
HON, BA, GE, UTC Defense, Electronics
AA, DD, XOM, IP Resources
AXP, GE, IBM, JPM, C Finance
T, SBC, GE, IBM, INTC, Communications/Infotech
HWP
CAT, GM, UTC Automotive
KO, EK, GE, MMM, MO, PG Consumer goods
DIS Entertainment
GE, MMM, UTC Industrial goods
HD, MCD, WMT Retail
IBM, MSFT Software
JNJ, MRK, MMM Drugs/Healthcare
The INDUs as a group had sales of $1.4 TRILLION and
profits to common of $122.3 billion. A couple of the
finance stocks did not show sales so they are not included
in sales. All INDUs had profits with only 2 having
profits to common of less than $1 billion.
The last time I looked--before the inclusion of MSFT
and INTC, they accounted for 25% of the SPX. I suppose
they still do due to reindexing.
The INDUs are doing what they do best--reading the future
economy. They see a slowdown. |
