The Changing of the Guard

by Sam B

The first & seventh oldest Dow Jones Industrial Average (DJIA) members reported earnings last week: IBM on Tuesday and GE on Friday. Both companies declined around 4% following their releases.



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IBM pointed to its strong growth in "strategic imperatives," which grew at 7% to $8.8 billion; cloud revenue was up 17% in the quarter. However, revenue overall was down 3%, and operating income was down 12% to $3.1 billion. Each IBM segment's revenue declined in the quarter—still IBM maintained its 2017 GAAP EPS estimates of $13.8 a share.



General Electric may have had a rougher quarter than IBM. GE's earnings dropped to 15 cents a share or $1.3 billion; total revenues dropped 12% to $29.6 billion. Cash flow from operations declined 67% from the first half of 2016—as GE Capital represented a smaller peace of the pie. GE said that its portfolio "enables it to execute in a slow growth, volatile environment."



Because of their weak results, investors may be looking at the newer entrants for a better gauge on the economy. The newest DJIA entrant, Apple, the largest company by market capitalization, reports next Tuesday on August 1. Half of the Dow companies have now reported during earning's season with fifteen more to go.





  • Caterpillar (CAT)
    •  reports earnings on 7/25/2017 before the market open.

  • Dupont (DD)
    •  reports earnings on 7/25/2017 before the market open.

  • McDonald’s (MCD)
    •  reports earnings on 7/25/2017 before the market open.

  • 3M (MMM)
    •  reports earnings on 7/25/2017 before the market open.

  • United Technologies (UTX)
    •  reports earnings on 7/25/2017 before the market open.

  • Coca Cola (KO)
    •  reports earnings on 7/26/2017 before the market open.

  • Boeing (BA)
    •  reports earnings on 7/26/2017 before the market open.

  • Procter & Gamble
    •  reports earnings on 7/27/2017 before the market open.

  • Verizon (VZ)
    •  reports earnings on 7/27/2017 before the market open.

  • Intel (INTC)
    •  reports earnings on 7/27/2017 after the market close.

  • Chevron (CVX)
    • reports earnings on 7/28/2017 before the market open.

  • Exxon Mobil (XOM)
    •  reports earnings on 7/28/2017 before the market open.

  • Merck (MRK)
    •  reports earnings on 7/28/2017 before the market open.

  • Pfizer (PFE)
    •  reports earnings on 8/1/2017 before the market open.

  • Apple (AAPL)
    •  reports earnings on 8/1/2017 after the market close.



Investors are eagerly awaiting these newer entrants results as there has been a changing of the guard.