SDOG spreads dividend risk across 51 equal-weighted holdings, delivering a 3.4% yield and 27% price appreciation over the past year.
LMT's Q1 FCF went negative while $816 million in dividends were paid, but KMI grew FCF 73% and earned a Moody's credit upgrade.
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The ALPS Sector Dividend Dogs ETF (NYSEARCA:SDOG) pays a trailing dividend yield of 3.4%, distributing $2.38 per share annually across quarterly payments. SDOG applies the Dogs of the Dow logic to the full S&P 500, isolating the five highest-yielding stocks in each of ten GICS sectors and equal-weighting them.
The question is whether that mechanical yield-chasing produces a durable income stream or concentrates capital in businesses whose dividends are at risk. A holding-by-holding look at SDOG suggests the answer is mostly the former, with two clear exceptions worth understanding.
How SDOG Manufactures Its Yield The fund selects the top five yielders per sector, weights each position near 2%, caps each sector near 10%, and rebalances quarterly. The result is 51 holdings, with the top ten representing only about 22% of assets. That structure spreads dividend risk widely: no single company failure can meaningfully dent the distribution. The trailing payout ratio sits at 53%, meaning the underlying holdings collectively distribute about half their earnings. SDOG’s expense ratio is 0.36%, and beta is 0.72.
Where the Income Actually Comes From Lockheed Martin (NYSE:LMT | LMT Price Prediction) is the fund’s largest position at 2.49%. The dividend stepped up to $3.45 quarterly, but Q1 2026 free cash flow was negative $291 million against $816 million in dividends paid. That quarter did not cover its payout. Management reaffirmed full-year FCF guidance of $6.5 to $6.8 billion, which would restore coverage, but F-16 program charges and fixed-price contract risk make the H2 recovery a real assumption rather than a given. Edison International (NYSE:EIX) yields 4.4% and raised its quarterly to $0.8775, its 22nd consecutive year of dividend growth. Board confidence held even as Southern California Edison extended roughly 1,500 Eaton Fire settlement offers exceeding $500 million. The company targets a 45 to 55% payout of SCE core earnings and expects no new equity issuance through 2030. SB 254 established an $18 billion continuation fund that materially caps utility exposure. Kinder Morgan (NYSE:KMI) grew Q1 free cash flow 73% to $687 million, Moody’s upgraded the credit to Baa1, and net debt to adjusted EBITDA fell to 3.6x. The $10.1 billion project backlog is 92% natural gas, giving the 2% dividend hike genuine runway. This is the safest income contributor in the top five. Merck (NYSE:MRK) carries a 2.6% yield and $0.85 quarterly payout. GAAP results are distorted by $14.8 billion in Cidara and Terns acquisition charges, but non-GAAP FY26 EPS guidance of $5.04 to $5.16 and KEYTRUDA growth of 12% to $8.03 billion keep cash generation intact. Long-term KEYTRUDA patent exposure is the risk. Chevron (NYSE:CVX) delivered its 39th consecutive annual increase and pays $1.78 quarterly. Q1 free cash flow was negative $1.55 billion on $2.9 billion of timing effects, but FY25 free cash flow was $16.6 billion. WTI at $79.20 sits comfortably above breakeven levels for the dividend. Total Return Alongside the Payout Yield only matters if the NAV holds up. SDOG is up almost 20% year to date and 27% over the past year at $71. Dividend growth of nearly 9% compounds on top of price appreciation, so shareholders are not paying for yield with capital erosion.
The Verdict The distribution looks safe. The equal-weight structure prevents any single dividend cut from meaningfully damaging the payout, four of five top holdings have covered dividends or credible paths back to coverage, and the aggregate 53% payout ratio leaves a cushion. Lockheed’s quarterly cash miss is worth tracking, but full-year guidance and defense backlog make it a monitoring item rather than a red flag. Investors seeking lower yield with faster growth may prefer a dividend-appreciation fund; those wanting the broad sector diversification of the Dogs approach with income today are getting what SDOG advertises.
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It could have a more muted effect on the U.S. stock market than the headline would indicate. The tariffs were widely expected and for several countries the existing tariff possibilities will remain largely unchanged. The European Union also reported that the measures do not exceed the previously agreed tariff ceilings. This reduces the immediate trade shock risks.
But the impact will be more significant depending on the way businesses cope with the increased import prices. Companies with a high dependence on imported components may be under pressure for margins. Some companies may pass these costs to consumers. This would raise inflation risks and make it more problematic for the Federal Reserve to consider easy monetary policy.
Therefore, tariffs would likely affect the stock market primarily through their impact on inflation expectations and corporate earnings but not due to an immediate decline in trade. Investors will also be looking for retaliation from key trading partners. A more muted reaction would add less pressure to the market, but a bigger trade dispute would add more volatility and weaken risk appetite.
Oil Prices and Treasury Yields Pressure U.S. Stocks The biggest short term threat to Wall Street is the surging oil prices. Brent crude closed above $98 per barrel and WTI oil has broken the $90. The escalation in the Middle East conflict has led to concerns about the availability of energy worldwide. When oil prices increase, the transportation and production costs across the economy increase and may lead to higher rate of inflation.
The 10-year US Treasury yields have moved to the highest levels since early 2025. The higher yields increase the borrowing costs and reduce the relative appeal of expensive stocks. This pressure is especially high for firms that rely significantly on their future earnings growth.
The corporate earnings also did not offer much support. Alphabet Inc. (GOOGL) and Tesla Inc. (TSLA) dropped as investors paid attention to spending plans and negative free cash flows. The chart below shows that the free cash flows of Alphabet and Tesla have decreased by 15.79% and 27.57% over the past year.
S&P 500 Forecast: Oil and Yield Risks Pressure the Index S&P 500 Outlook Weakens as Technology Stocks Slide The S&P 500 dropped last week to mark a low at 7,376 and recovered to close the week at 7,412. This drop was due to the weakness across several sectors. Some of the biggest losses were seen in communication services and consumer discretionary stocks following steep drops by Alphabet and Tesla. This creates a more difficult environment for the index as these big technology and growth stocks play a major role in the index’s trend.
The S&P 500 also faces some pressure from the elevated oil prices and higher Treasury yields. New tariffs also could contribute to inflation if businesses charge consumers more for imported items. If oil and the yields start to correct, then sentiment could improve. But if inflationary pressures persist, then the S&P 500 could be vulnerable to further short term weakness.
S&P 500 Eyes 8,000 Above 7,620 The S&P 500 has been consolidating between 7,200 and 7,600 since June 2026. This consolidation has formed a triangle pattern above the long term support zone of the 7,000 level. This triangle pattern suggests that a break above 7,620 will open the door for strong rally towards 8,000.
The 8,000 level target is defined by the ascending broadening wedge pattern that has stretched from July 2025. As long as the index remains above 7,000, the possibility of an upward surge is likely. But a break below 7,000 will push the index towards the next support of 6,200.
International Business Machines had its worst day in its history on July 14. So you may think that the blue chip dividend stock would drag down the Dow Jones Industrial Average, but that didn't happen. IBM has only a 2.3% weighting in the Dow, so its losses were more than offset by fellow Dow component Goldman Sachs, which has a 12.4% weighting and gained 9% that day.
This is just one of many examples when a Dow heavyweight has carried drastic underperformance from lower-weighted components. Ten of the Dow's 30 components are down year to date, but the Dow is up nearly 8% thanks to the overperformance of its top three heaviest weighted components. Goldman Sachs has the top weighting in the Dow and is up 23%, followed by Caterpillar (CAT -0.60%), which has a 10.3% weighting and is up 56%; and UnitedHealth Group, which has a 4.9% weighting and is up 30% on the year.
The price-weighted Dow index can become unbalanced if a handful of stocks surge in price without issuing stock splits. Goldman Sachs is up 190% in the last five years, and Caterpillar has done even better, jumping 330%. Combined, these two stocks make up over 22% of the Dow.
Right now, the industrials sector has the second-highest overall weighting in the Dow, representing 19% of the index. I believe there's an industrial stock that would be an ideal component to join the Dow, but it would need Caterpillar to issue a stock split first to balance the index's industrial sector weighting. That stock is GE Vernova (GEV -1.59%) -- let's see if it's a good buy now.
Image source: Getty Images.
A Caterpillar split could open the door for GE Vernova GE Vernova has some history in the Dow. It was created by the 2023 split of General Electric, which was divided into GE Vernova, GE Healthcare Technologies, and GE Aerospace. GE was one of the original members of the Dow when it was founded in 1896, but was removed in 2018.
The three independent companies have collectively produced incredible gains for investors who held the original stock. GE Vernova is up a mind-numbing 700% since its spinoff and 533% in the last two years. The rapid rise has pole-vaulted its market cap to $282 billion -- making it the third most valuable U.S. industrial company behind Caterpillar and GE Aerospace.
But Caterpillar would likely need to split its stock to make room for GE Vernova so the industrial sector isn't overweighted in the index. Caterpillar has issued stock splits in the past; its most recent split came in 2005.
And which company would be removed from the index to make room for GE Vernova? A very logical seat change could be dropping Nike, given that the athletic wear company is hovering near a 12-year low and its turnaround is taking far longer than expected. Nike has the smallest weighting in the Dow, making up only 0.48% of the index.
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GE Vernova is a candidate to split its stock as well At just over $1,000 per share at the time of this writing, GE Vernova would need to issue a stock split of its own before being added to the Dow.
If Caterpillar issued a stock split and GE Vernova replaced Nike at its current price, the Dow's industrial sector weighting would increase even more, and GE Vernova would instantly become one of the most heavily weighted components alongside Goldman Sachs. The Dow typically adds stocks only if they are priced closer to the index's median weighting or have recently split their own shares, to avoid tilting the index's balance.
For example, Alphabet issued a 20-for-1 stock split in 2022 and was added to the Dow in June of this year. If GE Vernova issued a 4-for-1 split, it would be priced right around the median of the Dow components.
This hypergrowth industrial stock deserves a seat in the Dow Given its industry-leading role in supplying industrial machinery, such as heavy-duty gas turbines, for AI data centers, GE Vernova stands out as a logical choice for adding another industrial component to the Dow.
Despite its massive run-up in recent years, GE Vernova fetches a surprisingly reasonable 30.8 price-to-earnings ratio because its earnings growth has kept up with its stock price appreciation. However, analyst consensus estimates have GE Vernova earning $30.64 in 2026 earnings per share (EPS) but just $24.48 in 2027 EPS.
Investors who believe we are still in the early innings of the AI infrastructure build-out may still want to buy GE Vernova, but it's worth noting that cyclical stocks can look cheap when their trailing earnings are in an expansion cycle, and then far more expensive as earnings compress during downturns. GE Vernova could pull back just as quickly as it ran up if there's a spending slowdown, making the stock ideally suited for risk-tolerant investors willing to endure volatility.
Daniel Foelber has positions in Nike. The Motley Fool has positions in and recommends Alphabet, Caterpillar, GE Aerospace, GE HealthCare Technologies, GE Vernova, Goldman Sachs Group, International Business Machines, and Nike. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The “Dogs of the Dow” is one of the oldest systematic investing strategies still around today. The idea is remarkably simple. At the beginning of each year, you take the 30 companies in the Dow Jones Industrial Average, select the 10 highest-yielding dividend stocks, invest equally across them, then repeat the process the following January by rebalancing into the new list.
The logic is straightforward. Because the Dow already consists of established, large-cap blue-chip companies with strong liquidity, screening for the highest dividend yields may help identify companies that have become temporarily undervalued while simultaneously boosting portfolio income.
By modern standards, the strategy feels somewhat primitive. Today’s investors have access to sophisticated factor models, smart beta indexes, and quantitative screens that incorporate dozens of variables beyond dividend yield alone. Still, its simplicity remains appealing, especially now that zero-commission trading makes annual rebalancing inexpensive.
If you like the general concept but would rather avoid buying and maintaining individual stocks yourself, there is an ETF built around a similar idea. The Invesco Dow Jones Industrial Average Dividend ETF (DJD) manages approximately $475 million in assets and offers several features that make it an interesting alternative to more mainstream dividend ETFs.
How Does DJD Work? The traditional Dow weights companies according to their share price, an approach dating back to an era when stock indexes were calculated by hand using pencil and paper. While price weighting made practical sense more than a century ago, market-cap weighting has generally become the preferred methodology because it better reflects a company’s economic size.
DJD instead takes the 28 dividend-paying companies currently within the Dow Jones Industrial Average and weights them according to their trailing 12-month dividend yield, with the portfolio rebalanced semi-annually. The result is a portfolio that naturally tilts toward higher-yielding companies while remaining fully invested in one of the market’s highest-quality stock universes.
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Today, DJD offers a 2.32% 30-day SEC yield, roughly one percentage point higher than the traditional Dow Jones Industrial Average. Distributions are paid quarterly. The valuation profile also looks attractive. The portfolio currently trades at a forward price-to-earnings ratio of 18.26 while maintaining excellent profitability, with a return on equity of 27.57%.
Is DJD Worth It? The answer largely depends on the time period you’re examining. Interestingly, DJD has quietly outperformed the traditional price-weighted Dow over recent years, and charges just a 0.07% expense ratio, making it one of the least expensive smart-beta dividend ETFs available.
Over the trailing five-year period, DJD generated a 10.97% annualized total return at net asset value compared with 10.78% for the Dow Jones Industrial Average. Over the past three years, DJD returned 17.52% annually versus 17.10%, while over the trailing one-year period it gained 22.44% compared with 20.65%.
The dividend itself shouldn’t be viewed as free money. On every ex-dividend date, the ETF’s net asset value declines by roughly the amount of the distribution. Instead, the appeal comes from the portfolio construction. By emphasizing higher-yielding companies within an already high-quality blue-chip universe, DJD creates a modest value tilt that has historically worked.
For investors looking beyond the largest household-name dividend ETFs, that’s where DJD becomes interesting. Sometimes the smaller, less-publicized funds offer thoughtful index methodologies at extremely competitive fees. DJD is one of those cases, and if its value-oriented approach fits your investment philosophy, it deserves a place on the watch list.
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US stocks ended mixed on Friday as gains in the Dow Jones Industrial Average were offset by weakness in semiconductor stocks, while investors continued to monitor developments in the Middle East and their potential impact on global markets.
The Dow Jones Industrial Average rose 235 points, or 0.5%, supported by a 3% gain in Apple shares.
The S&P 500 edged up 0.05% to finish near flat, while the Nasdaq Composite fell 0.6% as chipmakers came under pressure.
Markets had traded higher earlier in the session after Reuters reported, citing three Pakistani sources, that Pakistan is considering a path toward new peace negotiations between the United States and Iran, with China initiating the effort.
However, the report also noted that significant obstacles remain before talks with Washington can begin.
Oil prices retreated from recent highs during the session, offering some support to equities, although investors remained cautious heading into the weekend amid continued military tensions in the Middle East.
Semiconductor stocks led the market's decline as investors continued to reassess the outlook for artificial intelligence spending following recent earnings reports from major technology companies.
Intel shares dropped 8%, reversing earlier gains despite reporting second-quarter results that exceeded Wall Street expectations and forecasting quarterly profit and revenue above analyst estimates.
The company also outlined plans to increase spending over the next two years.
The weakness spread across the semiconductor sector. Broadcom and Advanced Micro Devices each fell about 3%, while Micron Technology lost 7%.
The VanEck Semiconductor ETF (SMH) also declined 3%.
Investor caution has increased after Alphabet raised its capital expenditure guidance despite reporting negative free cash flow, prompting broader concerns about the scale of AI infrastructure spending ahead of earnings from Microsoft, Amazon, Meta Platforms and Apple.
The technology sector became the biggest drag on the S&P 500 as investors questioned how quickly higher AI investments would translate into stronger profitability. The Philadelphia Semiconductor Index also moved lower during the session.
Middle East tensions, tariffs and economic data remain in focusGeopolitical developments continued to shape investor sentiment.
Earlier this week, President Donald Trump said he was considering a larger military response against Iran following attacks by Yemen's Houthi forces on Saudi oil tankers in the Red Sea.
On Friday, The New York Times reported that Trump met with senior advisers and cabinet officials to discuss whether to escalate US military action against Iran.
Although Brent crude fell nearly 4% to settle at $96.78 per barrel and West Texas Intermediate crude dropped 3% to $89.31, investors remained wary that further escalation could disrupt global energy supplies and reignite inflation concerns.
Markets also digested the Trump administration's new tariffs of 10% and 12.5% on imports from 60 trading partners after a temporary 10% global tariff expired.
Economic data released Friday showed US services sector activity accelerated in July, supported partly by spending related to the FIFA World Cup and Independence Day holiday, while manufacturing activity expanded at its slowest pace since March.
Among individual stocks, Digital Realty Trust gained after raising its full-year funds-from-operations forecast, helping the real estate sector outperform.
Oilfield services company SLB also advanced after reporting second-quarter profit above expectations.
For the week, the Dow and S&P 500 both finished lower, extending recent weakness, while the Nasdaq recorded a weekly decline of more than 2% as technology shares remained under pressure.
Key Takeaways Dow's Q2 EPS beat estimates, with revenues of $12.09B and self-help benefits above $300M.Dow's Packaging & Specialty Plastics sales rose 27% as higher polyethylene prices boosted results.Dow expects Q3 EBITDA of about $1.7B while self-help actions add roughly $130M in sequential benefits. Dow Inc. (DOW - Free Report) used its second-quarter earnings call to emphasize cost actions, portfolio changes and disciplined execution as management focuses on improving earnings durability. The company highlighted stronger pricing, margin recovery and cash generation while acknowledging continued market volatility.
Management also provided a cautious third-quarter outlook, pointing to polyethylene margin pressure and seasonal factors while expecting additional benefits from restructuring and productivity initiatives.
DOW Advances Cost and Portfolio ActionsCEO Karen Carter said that Dow is focused on three priorities: targeted growth, improving portfolio competitiveness and maintaining balanced capital allocation. Carter emphasized using the company’s global assets and customer relationships to strengthen long-term competitiveness.
DOW reported second-quarter operating EPS of $1.44, beating the Zacks Consensus Estimate of $1.25. Revenues of $12.09 billion slightly surpassed the Zacks Consensus Estimate of $12.04 billion.
The company said self-help efforts generated more than $300 million of benefits during the quarter. Management increased expected in-year benefits from these actions to more than $1.3 billion.
Dow Sees Strength in Key MarketsDow’s second-quarter sales increased 20% year over year, supported by higher prices across regions. Operating EBITDA was $2.3 billion, while operating EBIT improved significantly from the prior-year period.
The company’s Packaging & Specialty Plastics segment was a major contributor, with sales rising 27% year over year to $6.4 billion. Dow attributed this improvement to higher polyethylene prices and stronger integrated margins.
Dow noted that data center demand remains a growth area, particularly for thermal management solutions and Industrial Solutions products. Carter highlighted opportunities in electronics, mobility and specialty applications.
DOW Details Third-Quarter OutlookCFO Jeffrey Tate said that Dow expects third-quarter EBITDA of approximately $1.7 billion. The outlook indicates anticipated polyethylene margin compression following June price changes and typical seasonal patterns after strong second-quarter demand.
Management expects about $130 million of sequential benefits from self-help actions during the third quarter. These gains are expected to offset planned maintenance and the absence of certain second-quarter benefits.
Dow also highlighted risks from geopolitical tensions, logistics constraints and uneven regional demand. The company said market conditions remain volatile, particularly due to ongoing disruptions affecting energy and feedstock markets.
Dow Builds Specialty Growth PlatformsDow said it is reshaping the silicones business by reducing higher-cost upstream capacity and expanding downstream opportunities. The company expects the Barry, U.K. siloxanes shutdown to provide a $60 million EBITDA uplift in the second half of 2026.
Management said specialty silicones investments are focused on faster-growing markets, including electric vehicles, consumer electronics, healthcare and data centers. Carter noted that these downstream markets are expected to deliver stronger returns.
The company also discussed its Dow Coolant Care Network, which supports data center thermal management needs. Management views the offering as a way to expand both revenue opportunities and service capabilities.
DOW Addresses Analyst ConcernsA Morgan Stanley analyst asked about the Alberta project and whether Dow could bring in a partner. Carter said that the company remains focused on completing the project while staying disciplined on returns.
A JPMorgan analyst questioned the timing of cost savings and capital allocation priorities. Tate said that debt reduction remains the first priority, with share repurchases not expected during 2026.
Analysts also questioned polyethylene assumptions. Carter said that improving oil prices, declining inventories and stronger order activity could provide upside if current market conditions continue.
Dow Focuses on Financial FlexibilityDow confirmed that it is prioritizing balance sheet strength, maintaining approximately $14 billion in liquidity and directing excess cash toward deleveraging. Management noted that there are no substantive debt maturities until 2029.
The company expects working capital actions to release more than $500 million in the second half of 2026. Management also confirmed progress from restructuring efforts, including implemented role reductions and site transformation initiatives.
Carter said that Dow’s approach remains centered on improving productivity, strengthening its asset base and focusing investment on attractive markets. The company continues to position its actions around longer-term competitiveness.
Zacks Signals Point to a Mixed SetupDOW carries a Zacks Rank #3 (Hold), indicating that the stock’s earnings estimate revision trends are currently consistent with a neutral outlook. The Zacks Rank can change as analysts update earnings expectations following new company information. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of B and VGM Score of B, while its Growth Score is C and Momentum Score is F. Zacks Style Scores are designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics, with stronger scores indicating more favorable attributes.
US stocks opened mixed on Friday, recovering modestly after Wall Street's sharp selloff in the previous session, as investors assessed fresh corporate earnings, easing oil prices, escalating geopolitical tensions in the Middle East, and new tariffs announced by the Trump administration.
The Dow Jones Industrial Average rose about 40 points, while the S&P 500 gained around 0.13%.
The Nasdaq Composite fell 0.13%, continuing from Thursday's losses.
The rebound came after the Dow fell more than 500 points, or around 1%, on Thursday, while the S&P 500 and Nasdaq Composite posted their steepest one-day declines in a month.
The selloff was driven by concerns over rising artificial intelligence spending following earnings from Alphabet and Tesla, alongside a surge in oil prices amid escalating Middle East tensions.
Intel reported second-quarter results that exceeded Wall Street expectations.
The chipmaker forecast quarterly revenue and profit above analyst estimates and outlined plans to increase spending over the next two years.
The company also reported revenue growth of 25%, marking its strongest quarterly revenue increase since the third quarter of 2011.
However, shares of Intel fell about 1.14% in trading.
The broader semiconductor sector remained subdued as investors continued to scrutinize AI-related spending across the technology industry.
Alphabet and Tesla's latest quarterly results have heightened concerns over increasing capital expenditures and cash burn among major technology companies.
The cautious mood comes ahead of earnings reports next week from Microsoft, Amazon and Meta Platforms, which are expected to provide further insight into AI infrastructure spending.
Investors have become increasingly selective toward AI-related companies, rewarding operational execution while paying closer attention to profitability and returns on investment.
Oracle traded higher by 0.7% after the Pentagon announced a contract worth nearly $7 billion over as long as 10 years to consolidate the Defense Department's on-premises software licenses under a single cloud agreement.
Middle East tensions and tariffs remain key market driversMarkets continued to monitor geopolitical developments after President Donald Trump signaled that he is considering further military action against Iran following attacks by Yemen's Houthi forces on two Saudi oil tankers in the Red Sea.
Oil prices, which climbed above $100 a barrel on Thursday for the first time since late May, eased on Friday. Brent crude traded near $97 per barrel, down roughly 3%, while US West Texas Intermediate crude slipped more than 2% to trade above $89 per barrel.
Although prices retreated, investors remain concerned that prolonged disruptions to global energy supplies could revive inflation pressures and complicate central bank policy decisions.
Separately, the Trump administration announced new tariffs ranging from 10% to 12.5% on goods from 60 trading partners, citing concerns over enforcement of forced-labor bans.
The measures took effect after a temporary 10% global tariff expired.
Attention is now shifting toward next week's Federal Reserve policy meeting and the release of the Personal Consumption Expenditures (PCE) price index, the central bank's preferred inflation measure.
According to CME FedWatch data, markets are pricing in roughly a one-in-three probability of a Fed rate hike next week, compared with about a 12% chance a week earlier.
Despite Friday's rebound in futures, the major US indexes remain on track for weekly losses, with the Dow heading toward a third consecutive weekly decline and both the S&P 500 and Nasdaq poised for a second straight week in the red.
For the quarter ended June 2026, Dow Inc. (DOW - Free Report) reported revenue of $12.09 billion, up 19.7% over the same period last year. EPS came in at $1.44, compared to -$0.42 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $12.04 billion, representing a surprise of +0.41%. The company delivered an EPS surprise of +15.2%, with the consensus EPS estimate being $1.25.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dow Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Performance Materials & Coatings: $2.36 billion versus the three-analyst average estimate of $2.16 billion. The reported number represents a year-over-year change of +10.9%.Revenues- Corporate: $180 million versus the three-analyst average estimate of $162.67 million. The reported number represents a year-over-year change of +9.8%.Net Sales- Packaging & Specialty Plastics: $6.39 billion versus $6.67 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +27.1% change.Net Sales- Industrial Intermediates & Infrastructure: $3.17 billion versus $3.05 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13.6% change.Operating EBITDA- Packaging & Specialty Plastics: $1.64 billion versus $1.89 billion estimated by three analysts on average.Operating EBITDA- Corporate: $-1 million compared to the $-48.33 million average estimate based on three analysts.Operating EBITDA- Performance Materials & Coatings: $291 million compared to the $274.51 million average estimate based on three analysts.Operating EBITDA- Industrial Intermediates & Infrastructure: $383 million versus $42.48 million estimated by three analysts on average.View all Key Company Metrics for Dow Inc. here>>>
Shares of Dow Inc. have returned +6.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways Dow posted adjusted Q2 EPS of $1.44, beating estimates by 15%, as sales rose 19.7% to $12.1B.Higher local prices and self-help benefits offset a 1% volume decline tied to planned maintenance.Dow expects more than $1.3B in 2026 self-help benefits, with gains accelerating into 2027. Dow Inc. (DOW - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.44 per share, reversing the year-ago loss of 42 cents per share. The figure beat the Zacks Consensus Estimate of $1.25 by 15%. The year-over-year improvement was mainly driven by higher prices and benefits from Dow’s self-help initiatives.
Including one-time items, such as costs associated with the Transform to Outperform program, partially offset by an income tax adjustment,the company reported earnings per share of 99 cents in the quarter compared to the year-ago quarter’s loss of $1.18.
Net sales rose 19.7% year over year to around $12.1 billion and beat the consensus estimate of $11.6 billion by 3.8%. Local prices increased 20%, while volume declined 1% as planned maintenance weighed on Packaging & Specialty Plastics.
GAAP net income was $802 million in the reported quarter compared with a net loss of $801 million a year ago. Operating EBITDA increased to $2.3 billion from $703 million.
DOW’s Segment HighlightsPackaging & Specialty Plastics sales rose 27% year over year to $6,385 million. The figure fell behind our estimate of $6.7 billion. Volume fell 4% due to declines in both businesses, including higher planned maintenance in Hydrocarbons & Energy, which reduced merchant sales. Lower polyethylene volumes in EMEAI and Asia Pacific also reflected the Middle East conflict. Higher polyethylene and olefins prices more than offset the volume pressure.
Industrial Intermediates & Infrastructure sales increased 14% year over year to $3.2 billion. The figure surpassed our estimate of $3.04 billion. Volume declined 2% as lower demand in Polyurethanes & Construction Chemicals, including the effects of the Middle East conflict, outweighed growth in Industrial Solutions. Industrial Solutions volumes benefited from recent alkoxylation investments and increased demand for data center applications.
Performance Materials & Coatings sales advanced 11% year over year to $2.4 billion. The figure beat our estimate of $2.2 billion. Volume grew 6%, supported by gains across both businesses and strength in downstream silicones. Consumer Solutions benefited from higher demand across consumer, electronics and home care applications, while Coatings & Performance Monomers recorded increased acrylic monomers and architectural coatings volumes.
DOW’s FinancialsCash flow from operating activities for continuing operations was $1.3 billion, reversing the year-ago use of $470 million. The improvement was primarily driven by higher earnings across all businesses, which more than offset an expected working capital build associated with revenue growth.
Cash and cash equivalents were $3.97 billion as of June 30, 2026, up from $3.8 billion at the end of 2025. Shareholder returns through dividends totaled $253 million during the quarter.
DOW's OutlookDow expects approximately $200 million in additional benefits from Transform to Outperform during 2026. This raises the company’s expected total in-year benefits from self-help initiatives to more than $1.3 billion.
For the second half of 2026, management plans to focus on growth and innovation in attractive end markets, investments to strengthen the portfolio and balanced capital allocation. Dow expects the growth and productivity benefits from Transform to Outperform to accelerate through the remainder of 2026 and into 2027.
DOW’s Stock Price PerformanceDOW’s shares have gained 24.7% in the past year against the industry’s decline of 0.8%.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key PicksDOW currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).
On July 23, 2026, Dow Inc (DOW) released its 8-K filing, announcing its financial results for the second quarter of 2026, highlighting a significant rebound in
Dow Inc. (DOW - Free Report) came out with quarterly earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.25 per share. This compares to a loss of $0.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +15.20%. A quarter ago, it was expected that this materials science would post a loss of $0.39 per share when it actually produced a loss of $0.14, delivering a surprise of +64.1%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Dow Inc., which belongs to the Zacks Chemical - Diversified industry, posted revenues of $12.09 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.41%. This compares to year-ago revenues of $10.1 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Dow Inc. shares have added about 33.7% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Dow Inc.?While Dow Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Dow Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.07 on $11.2 billion in revenues for the coming quarter and $2.71 on $43.85 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Diversified is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
DuPont de Nemours (DD - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.
This specialty chemicals maker is expected to post quarterly earnings of $1.76 per share in its upcoming report, which represents a year-over-year change of -47.6%. The consensus EPS estimate for the quarter has been revised 5.8% higher over the last 30 days to the current level.
DuPont de Nemours' revenues are expected to be $1.82 billion, down 44.2% from the year-ago quarter.
Net sales were $12.1 billion, up 20% year-over-year, reflecting increases in all operating segments and regions. Local price increased 20% versus the year-ago period, led by gains in Packaging & Specialty Plastics, with higher polyethylene prices in all regions. Currency increased 1% year-over-year. Volume decreased 1% year-over-year. Gains in Performance Materials & Coatings across both businesses were more than offset by declines in Packaging & Specialty Plastics largely due to planned maintenance activity. GAAP net income was $802 million. Op. EBIT1 was $1.6 billion, up $1.7 billion year-over-year, primarily driven by higher prices as well as the Company's self-help initiatives. GAAP earnings per share (EPS) was $0.99; operating EPS1 was $1.44, compared to a loss of $0.42 in the year-ago period. Op. EPS excludes significant items totaling $0.45 per share, driven by costs associated with Transform to Outperform, partially offset by an income tax adjustment associated with a payment from NOVA Chemicals. Cash provided by operating activities – continuing operations was $1.3 billion, primarily driven by higher earnings across all businesses, more than offsetting an expected working capital build reflecting revenue growth. Returns to shareholders totaled $253 million of dividends in the quarter. CEO QUOTE
"Team Dow delivered strong second quarter results through disciplined and timely execution, reliably serving our customers, and accelerating our self-help actions," said Karen S. Carter, Dow CEO. "Market conditions were supportive this quarter, and our self-help initiatives delivered ahead of plan, further reinforcing the improvement in our earnings as we continue to strengthen Dow's resilience and agility. We now expect to generate approximately $200 million more in benefits from Transform to Outperform this year, enabling us to increase the total in-year benefits from self-help to greater than $1.3 billion. Our actions to become a leaner, more competitive company position Dow well to continue winning with our customers while delivering enhanced long-term shareholder value."
SUMMARY FINANCIAL RESULTS
Three Months Ended Jun 30
In millions, except per share amounts
2Q26
2Q25
vs. SQLY
[B / (W)]
Net Sales
$12,092
$10,104
$1,988
GAAP Income (Loss) Net of Tax
$802
$(801)
$1,603
Operating EBIT¹
$1,648
$(21)
$1,669
Operating EBITDA¹
$2,312
$703
$1,609
GAAP Earnings (Loss) Per Share
$0.99
$(1.18)
$2.17
Operating Earnings Per Share¹
$1.44
$(0.42)
$1.86
Cash Provided by (Used for) Operating Activities
– Cont. Ops
$1,324
$(470)
$1,794
1. Op. Earnings Per Share, Op. EBIT, Op. EBIT Margin and Op. EBITDA, Free Cash Flow and Cash Flow Conversion are non-GAAP measures. See appendix for further discussion.
®TM Trademark of The Dow Chemical Company or an affiliated company of Dow
SEGMENT HIGHLIGHTS
Packaging & Specialty Plastics
Three Months Ended Jun 30
In millions
2Q26
2Q25
vs. SQLY
[B / (W)]
Net Sales
$6,385
$5,025
$1,360
Operating EBIT
$1,278
$71
$1,207
Packaging & Specialty Plastics segment net sales in the quarter were $6.4 billion, up 27% versus the year-ago period. Local price increased 30% year-over-year, primarily driven by higher polyethylene prices in all regions. Currency increased net sales by 1%. Volume decreased 4% year-over-year, driven by lower volumes in both businesses, including higher planned maintenance activity in Hydrocarbons & Energy, resulting in lower merchant sales.
Op. EBIT was $1.3 billion, an increase of $1.2 billion compared to the year-ago period, driven by higher integrated margins as a result of higher polyethylene prices contributing to margin expansion and tailwinds from the Company's self-help initiatives, which were partly offset by higher planned maintenance activity.
Packaging and Specialty Plastics business reported a net sales increase versus the year-ago period, reflecting higher polyethylene prices, most notably in flexible packaging applications and in all regions. This more than offset lower polyethylene volumes, driven by declines in Europe, the Middle East, Africa and India (EMEAI) and Asia Pacific impacted by the Middle East conflict.
Hydrocarbons & Energy business reported a net sales increase year-over-year, driven by higher olefins prices, which more than offset lower volumes due to planned maintenance activity in the U.S. Gulf Coast and the idling of a cracker in EMEAI in mid-2025, which successfully restarted in June.
Industrial Intermediates & Infrastructure
Three Months Ended Jun 30
In millions
2Q26
2Q25
vs. SQLY
[B / (W)]
Net Sales
$3,166
$2,786
$380
Operating EBIT
$246
$(185)
$431
Industrial Intermediates & Infrastructure segment net sales in the quarter were $3.2 billion, up 14% versus the year-ago period. Local price increased 15% year-over-year, reflecting gains in both businesses and in all regions. Currency increased net sales by 1%. Volume decreased 2% year-over-year, driven by lower volumes in Polyurethanes & Construction Chemicals, including impacts from the Middle East conflict, which were partially offset by increased volume in Industrial Solutions.
Op. EBIT was $246 million, an increase of $431 million versus the year-ago period, driven by higher margins, tailwinds from the Company's self-help initiatives, lower planned maintenance activity and the suspension of the recognition of equity losses from Sadara.
Polyurethanes & Construction Chemicals business reported an increase in net sales compared to the year-ago period, primarily driven by local price gains, which were partly offset by lower volumes. Volume growth across industrial market applications was more than offset by impacts from the Middle East conflict.
Industrial Solutions business reported an increase in net sales, with local price gains in all regions compared to the year-ago period. Volume growth was driven by recent alkoxylation investments and increased demand for data center applications, partially offset by impacts from the Middle East conflict.
Performance Materials & Coatings
Three Months Ended Jun 30
In millions
2Q26
2Q25
vs. SQLY
[B / (W)]
Net Sales
$2,361
$2,129
$232
Operating EBIT
$133
$152
($19)
Performance Materials & Coatings segment net sales in the quarter were $2.4 billion, up 11% versus the year-ago period. Local price increased 4% year-over-year, driven by an increase in Coatings & Performance Monomers. Currency increased net sales by 1%. Volume increased 6% year-over-year, driven by higher volumes in both businesses, led by growth in downstream silicones.
Op. EBIT was $133 million, a decrease of $19 million versus the year-ago period, as tailwinds from the Company's self-help initiatives were more than offset by higher fixed costs, including turnaround activity in the quarter and the costs associated with the in-period shutdown of our Barry, U.K. upstream siloxanes plant.
Consumer Solutions business reported an increase in net sales versus the year-ago period, driven by volume gains in downstream silicones, led by consumer, electronics and home care applications.
Coatings & Performance Monomers business reported an increase in net sales across all regions compared to the year-ago period, led by higher price and volume in both acrylic monomers and architectural coatings.
OUTLOOK
"As we look into the second half of 2026, we will continue to build a more agile and resilient company that sets a new competitive standard," said Carter. "We will do so by advancing three priorities: growth and innovation in attractive end markets, investing in and strengthening our portfolio, and ensuring balanced capital allocation. Aligned to this, Transform to Outperform is delivering improvements in both growth and productivity, and we expect the impact of these efforts to ramp significantly throughout the remainder of this year and into 2027. Taken together, our collective actions are focused on enhancing the long-term value Dow delivers across the cycle."
Conference Call
Dow will host a live webcast of its quarterly earnings conference call with investors to discuss its results, business outlook and other matters today at 8:00 a.m. ET. The webcast and slide presentation that accompany the conference call will be posted on the events and presentations page of investors.dow.com.
About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, customer-focused innovation and leading business positions enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 29 countries and employed approximately 34,600 people as of year-end 2025. Dow delivered sales of approximately $40 billion in 2025. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us at www.dow.com.
Cautionary Statement about Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.
Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; any supply chain, operational or other disruptions, sanctions, export restrictions, or increased economic uncertainty related to the ongoing conflicts between Russia and Ukraine and in the Middle East; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe, including the completion and success of its integrated ethylene cracker and derivatives facility in Alberta, Canada; size of the markets for Dow's products and services and ability to compete in such markets; Dow's ability to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow's products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow's intellectual property in the United States and abroad; Dow's ability to realize expected benefits from Transform to Outperform on the contemplated timeframe; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow's significant customers and suppliers; changes in public sentiment and political leadership; increased concerns about plastics in the environment and lack of a circular economy for plastics at scale; changes in consumer preferences and demand; changes in laws and regulations, political conditions, tariffs and trade policies, or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business, logistics, and supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflicts between Russia and Ukraine and in the Middle East; weather events and natural disasters; disruptions in Dow's information technology networks and systems, including the impact of cyberattacks; risks related to Dow's separation from DowDuPont Inc. such as Dow's obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities; and any global and regional economic impacts of a pandemic or other public health-related risks and events on Dow's business.
Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and the Company's subsequent reports filed with the U.S. Securities and Exchange Commission. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow Inc. and The Dow Chemical Company and its consolidated subsidiaries assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.
®TM Trademark of The Dow Chemical Company or an affiliated company of Dow
Non-GAAP Financial Measures
This earnings release includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segments, including allocating resources. Dow's management believes that these non-GAAP measures best reflect the ongoing performance of the Company during the periods presented and provide more relevant and meaningful information to investors as they provide insight with respect to ongoing operating results of the Company and a more useful comparison of year-over-year results. These non-GAAP measures supplement the Company's GAAP disclosures and should not be viewed as alternatives to GAAP measures of performance. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Non-GAAP measures included in this release are defined below. Reconciliations for these non-GAAP measures to GAAP are provided in the Selected Financial Information and Non-GAAP Measures section starting on page 10. Dow does not provide forward-looking GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of pending litigation, unusual gains and losses, foreign currency exchange gains or losses and potential future asset impairments, as well as discrete taxable events, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP results for the guidance period.
Operating Earnings Per Share is defined as "Earnings (loss) per common share - diluted" excluding the after-tax impact of significant items.
Operating EBIT is defined as earnings (i.e., "Income (loss) before income taxes") before interest, excluding the impact of significant items.
Operating EBIT Margin is defined as Operating EBIT as a percentage of net sales.
Operating EBITDA is defined as earnings (i.e., "Income (loss) before income taxes") before interest, depreciation and amortization, excluding the impact of significant items.
Free Cash Flow is defined as "Cash provided by (used for) operating activities - continuing operations," less capital expenditures. Under this definition, Free Cash Flow represents the cash generated by the Company from operations after investing in its asset base. Free Cash Flow, combined with cash balances and other sources of liquidity, represent the cash available to fund obligations and provide returns to shareholders. Free Cash Flow is an integral financial measure used in the Company's financial planning process.
Cash Flow Conversion is defined as "Cash provided by (used for) operating activities - continuing operations," divided by Operating EBITDA. Management believes Cash Flow Conversion is an important financial metric as it helps the Company determine how efficiently it is converting its earnings into cash flow.
Operating Return on Capital (ROC) is defined as net operating profit after tax, excluding the impact of significant items, divided by total average capital, also referred to as ROIC.
Dow Inc. and Subsidiaries
Consolidated Statements of Income
In millions, except per share amounts (Unaudited)
Three Months Ended
Six Months Ended
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Net sales
$ 12,092
$ 10,104
$ 21,886
$ 20,535
Cost of sales
9,925
9,521
19,079
19,281
Research and development expenses
207
188
388
388
Selling, general and administrative expenses
535
347
952
713
Amortization of intangibles
40
63
86
139
Restructuring and asset related charges - net
503
591
530
799
Equity in earnings (losses) of nonconsolidated affiliates
36
(30)
(267)
(50)
Sundry income (expense) - net
125
147
246
160
Interest income
38
39
80
67
Interest expense and amortization of debt discount
210
209
429
425
Income (loss) before income taxes
871
(659)
481
(1,033)
Provision for income taxes
69
142
124
58
Net income (loss)
802
(801)
357
(1,091)
Net income attributable to noncontrolling interests
81
34
169
51
Net income (loss) available for Dow Inc. common stockholders
$ 721
$ (835)
$ 188
$ (1,142)
Per common share data:
Earnings (loss) per common share - basic
$ 0.99
$ (1.18)
$ 0.25
$ (1.62)
Earnings (loss) per common share - diluted
$ 0.99
$ (1.18)
$ 0.25
$ (1.62)
Weighted-average common shares outstanding - basic
723.5
709.5
722.4
708.2
Weighted-average common shares outstanding - diluted
Treasury stock at cost (2026: 69,578,048 shares; 2025: 73,065,152 shares)
(4,016)
(4,233)
Dow Inc.'s stockholders' equity
15,860
16,008
Noncontrolling interests
1,507
1,514
Total equity
17,367
17,522
Total Liabilities and Equity
$ 61,585
$ 58,538
Dow Inc. and Subsidiaries
Consolidated Statements of Cash Flows
In millions (Unaudited)
Six Months Ended
Jun 30,
2026
Jun 30,
2025
Operating Activities
Net income (loss)
$ 357
$ (1,091)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization
1,383
1,438
Credit for deferred income tax
(114)
(131)
Earnings of nonconsolidated affiliates less than dividends received
543
220
Net periodic pension benefit credit
(16)
(50)
Pension contributions
(78)
(76)
Net gain on sales of assets, businesses and investments
(49)
(102)
Restructuring and asset related charges - net
530
799
Other net loss
3
104
Changes in assets and liabilities, net of effects of acquired and divested companies:
Accounts and notes receivable
(1,761)
(935)
Inventories
(638)
(158)
Accounts payable
1,347
(12)
Other assets and liabilities, net
941
(372)
Cash provided by (used for) operating activities - continuing operations
2,448
(366)
Cash provided by (used for) operating activities - discontinued operations
7
(13)
Cash provided by (used for) operating activities
2,455
(379)
Investing Activities
Capital expenditures
(1,135)
(1,347)
Proceeds from incentives related to capital expenditures
49
—
Cash flow hedging related to capital expenditures
(6)
—
Investment in gas field developments
(48)
(68)
Proceeds from sales of property, businesses and consolidated companies, net of cash divested
58
131
Investments in and loans to nonconsolidated affiliates
(133)
(20)
Purchases of investments
(782)
(205)
Proceeds from sales and maturities of investments
524
552
Other investing activities, net
53
(5)
Cash used for investing activities
(1,420)
(962)
Financing Activities
Changes in short-term notes payable
17
48
Proceeds from issuance of short-term debt greater than three months
16
37
Payments on short-term debt greater than three months
(34)
(41)
Proceeds from issuance of long-term debt
81
1,107
Payments on long-term debt
(206)
(1,114)
Collections on securitization programs, net of remittances
—
18
Transaction financing, debt issuance and other costs
(3)
(85)
Employee taxes paid for share-based payment arrangements
(15)
(16)
Distributions to noncontrolling interests
(158)
(56)
Proceeds from sale of noncontrolling interests
—
2,433
Dividends paid to stockholders
(505)
(990)
Cash provided by (used for) financing activities
(807)
1,341
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(76)
253
Summary
Increase in cash, cash equivalents and restricted cash
152
253
Cash, cash equivalents and restricted cash at beginning of period
3,952
2,263
Cash, cash equivalents and restricted cash at end of period
$ 4,104
$ 2,516
Less: Restricted cash and cash equivalents, included in "Other current assets"
131
117
Cash and cash equivalents at end of period
$ 3,973
$ 2,399
Dow Inc. and Subsidiaries
Net Sales by Segment and Geographic Region
Net Sales by Segment
Three Months Ended
Six Months Ended
In millions (Unaudited)
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Packaging & Specialty Plastics
$ 6,385
$ 5,025
$ 11,304
$ 10,335
Industrial Intermediates & Infrastructure
3,166
2,786
5,792
5,641
Performance Materials & Coatings
2,361
2,129
4,441
4,200
Corporate
180
164
349
359
Total
$ 12,092
$ 10,104
$ 21,886
$ 20,535
U.S. & Canada
$ 4,782
$ 3,988
$ 8,578
$ 8,215
EMEAI 1
3,930
3,272
7,114
6,546
Asia Pacific
1,817
1,737
3,555
3,595
Latin America
1,563
1,107
2,639
2,179
Total
$ 12,092
$ 10,104
$ 21,886
$ 20,535
Net Sales Variance by Segment and
Geographic Region
Three Months Ended Jun 30, 2026
Six Months Ended Jun 30, 2026
Local
Price &
Product
Mix
Currency
Volume
Total
Local
Price &
Product
Mix
Currency
Volume
Total
Percent change from prior year
Packaging & Specialty Plastics
30 %
1 %
(4) %
27 %
10 %
2 %
(3) %
9 %
Industrial Intermediates & Infrastructure
15
1
(2)
14
3
3
(3)
3
Performance Materials & Coatings
4
1
6
11
—
2
4
6
Total
20 %
1 %
(1) %
20 %
6 %
2 %
(1) %
7 %
Total, excluding the Hydrocarbons & Energy
business
18 %
1 %
— %
19 %
6 %
2 %
— %
8 %
U.S. & Canada
17 %
— %
3 %
20 %
5 %
— %
(1) %
4 %
EMEAI 1
21
3
(4)
20
7
6
(4)
9
Asia Pacific
14
—
(9)
5
3
1
(5)
(1)
Latin America
32
—
9
41
12
—
9
21
Total
20 %
1 %
(1) %
20 %
6 %
2 %
(1) %
7 %
Europe, Middle East, Africa and India. Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
Operating EBIT by Segment
Three Months Ended
Six Months Ended
In millions (Unaudited)
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Packaging & Specialty Plastics
$ 1,278
$ 71
$ 1,486
$ 413
Industrial Intermediates & Infrastructure
246
(185)
128
(313)
Performance Materials & Coatings
133
152
250
201
Corporate
(9)
(59)
(62)
(92)
Total
$ 1,648
$ (21)
$ 1,802
$ 209
Depreciation and Amortization by Segment
Three Months Ended
Six Months Ended
In millions (Unaudited)
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Packaging & Specialty Plastics
$ 361
$ 369
$ 743
$ 729
Industrial Intermediates & Infrastructure
137
153
285
299
Performance Materials & Coatings
158
192
339
392
Corporate
8
10
16
18
Total
$ 664
$ 724
$ 1,383
$ 1,438
Operating EBITDA by Segment
Three Months Ended
Six Months Ended
In millions (Unaudited)
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Packaging & Specialty Plastics
$ 1,639
$ 440
$ 2,229
$ 1,142
Industrial Intermediates & Infrastructure
383
(32)
413
(14)
Performance Materials & Coatings
291
344
589
593
Corporate
(1)
(49)
(46)
(74)
Total
$ 2,312
$ 703
$ 3,185
$ 1,647
Equity in Earnings (Losses) of Nonconsolidated
Affiliates by Segment
Three Months Ended
Six Months Ended
In millions (Unaudited)
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Packaging & Specialty Plastics 1
$ 19
$ 7
$ (44)
$ 46
Industrial Intermediates & Infrastructure 1
15
(39)
(227)
(97)
Performance Materials & Coatings
1
1
2
1
Corporate
1
1
2
—
Total
$ 36
$ (30)
$ (267)
$ (50)
Reconciliation of "Net income (loss)" to "Operating EBIT"
Three Months Ended
Six Months Ended
In millions (Unaudited)
Jun 30,
2026
Jun 30,
2025
Jun 30,
2026
Jun 30,
2025
Net income (loss)
$ 802
$ (801)
$ 357
$ (1,091)
+ Provision for income taxes
69
142
124
58
Income (loss) before income taxes
$ 871
$ (659)
$ 481
$ (1,033)
- Interest income
38
39
80
67
+ Interest expense and amortization of debt discount
210
209
429
425
- Significant items
(605)
(468)
(972)
(884)
Operating EBIT (non-GAAP)
$ 1,648
$ (21)
$ 1,802
$ 209
Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure include losses of $81 million and $211 million, respectively, in the six months ended June 30, 2026, related to the Sadara guarantee liability adjustment, a significant item. Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
Significant Items Impacting Results for the Three Months Ended Jun 30, 2026
In millions, except per share amounts (Unaudited)
Pretax 1
Net
income
(loss) 2
EPS 3
Income Statement Classification
Reported results
$ 871
$ 721
$ 0.99
Less: Significant items
Transform to Outperform 4
(526)
(418)
(0.58)
SG&A ($81 million); Restructuring and
asset related charges - net
($445 million)
2025 Restructuring Program asset
related charges and exit and disposal
costs 5
(58)
(46)
(0.06)
Restructuring and asset related charges
- net
2025 Restructuring implementation
costs 6
(28)
(23)
(0.03)
Cost of sales ($27 million);
R&D ($1 million)
Indemnification and other transaction
related credits 7
7
7
0.01
Sundry income (expense) - net
Income tax related items 8
—
150
0.21
Provision for income taxes
Total significant items
$ (605)
$ (330)
$ (0.45)
Operating results (non-GAAP)
$ 1,476
$ 1,051
$ 1.44
Significant Items Impacting Results for the Three Months Ended Jun 30, 2025
In millions, except per share amounts (Unaudited)
Pretax 1
Net
income
(loss) 2
EPS 3
Income Statement Classification
Reported results
$ (659)
$ (835)
$ (1.18)
Less: Significant items
2025 Restructuring Program severance
and related benefit costs and asset
related charges 5
(591)
(474)
(0.67)
Restructuring and asset related charges
- net
Implementation costs 6
(5)
(4)
(0.01)
Cost of sales ($1 million);
SG&A ($4 million)
Net gain on divestitures and asset sale 9
103
77
0.11
Sundry income (expense) - net
Litigation related charges, awards and
adjustments 10
42
33
0.05
Cost of sales
Indemnification and other transaction
related costs 7
(17)
(17)
(0.02)
Sundry income (expense) - net
Income tax related items 8
—
(153)
(0.22)
Provision for income taxes
Total significant items
$ (468)
$ (538)
$ (0.76)
Operating results (non-GAAP)
$ (191)
$ (297)
$ (0.42)
"Income (loss) before income taxes." "Net income (loss) available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. "Earnings (loss) per common share - diluted," which includes the impact of participating securities in accordance with the two-class method. Includes costs to achieve of $81 million and severance and related benefit costs of $445 million associated with Transform to Outperform. For 2026, includes impairment charges related to the write-down of certain manufacturing facilities and other miscellaneous assets and exit and disposal costs associated with the Company's 2025 Restructuring program. For 2025, includes severance and related benefit costs and impairment charges related to the write-down of certain manufacturing facilities, corporate assets, leased non-manufacturing facilities and other miscellaneous assets associated with the Company's 2025 Restructuring Program. For 2026, includes implementation costs associated with the Company's 2025 Restructuring Program. For 2025, also includes implementation costs associated with the sale of membership interests of the Company's formerly wholly owned subsidiary, Dow InfraCo, LLC. Relates to credits (charges) associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation. For 2026, amount relates to changes in the Company's ability to utilize foreign tax credits associated with cash proceeds received in March 2026 related to a legal matter with Nova Chemicals Corporation ("Nova"). For 2025, amounts relate to valuation allowances on deferred tax assets in certain foreign jurisdictions, partially offset by a tax basis adjustment related to the Company's consolidated infrastructure entity. Relates to a gain on the sale of the Company's soil fumigation product line. Includes a gain associated with the reassessment of liabilities for certain accrued legacy agricultural products groundwater contamination matters, partially offset by the settlement of a separate claim related to water storage district legacy groundwater contamination matters. Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
Significant Items Impacting Results for the Six Months Ended Jun 30, 2026
In millions, except per share amounts (Unaudited)
Pretax 1
Net
Income 2
EPS 3
Income Statement Classification
Reported results
$ 481
$ 188
$ 0.25
Less: Significant items
Transform to Outperform 4
(606)
(481)
(0.67)
SG&A ($134 million); Restructuring
and asset related charges - net
($472 million)
2025 Restructuring Program asset
related charges and exit and disposal
costs 5
Litigation related charges, awards and
adjustments 8
26
21
0.03
Sundry income (expense) - net
Indemnification and other transaction
related credits 9
7
7
0.01
Sundry income (expense) - net
Total significant items
$ (972)
$ (766)
$ (1.05)
Operating results (non-GAAP)
$ 1,453
$ 954
$ 1.30
"Income (loss) before income taxes." "Net income (loss) available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. "Earnings (loss) per common share - diluted," which includes the impact of participating securities in accordance with the two-class method. Includes costs to achieve of $134 million and severance and related benefit costs of $472 million associated with Transform to Outperform. Includes impairment charges related to the write-down of certain manufacturing facilities and other miscellaneous assets and exit and disposal costs associated with the Company's 2025 Restructuring program. Includes implementation costs associated with the Company's 2025 Restructuring Program. Includes a charge due to a change in fair value of the estimated liability associated with the Company's guarantee of Sadara's project financing debt. Relates to a gain associated with a legal matter with Nova. Relates to credits associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation. Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
Significant Items Impacting Results for the Six Months Ended Jun 30, 2025
In millions, except per share amounts (Unaudited)
Pretax 1
Net Income 2
EPS 3
Income Statement Classification
Reported results
$ (1,033)
$ (1,142)
$ (1.62)
Less: Significant items
Restructuring, implementation and
efficiency costs, and asset related
charges - net 4
(51)
(39)
(0.05)
Cost of sales ($44 million);
R&D ($1 million); SG&A ($4 million);
Restructuring and asset related
charges - net ($1 million); Sundry
income (expense) - net ($1 million)
2025 Restructuring Program severance
and related benefit costs and asset
related charges 5
(798)
(635)
(0.90)
Restructuring and asset related charges
- net
Implementation costs 6
(5)
(4)
(0.01)
Cost of sales ($1 million);
SG&A ($4 million)
Net gain on divestitures and asset sale 7
103
77
0.11
Sundry income (expense) - net
Litigation related charges, awards and
adjustments 8
42
33
0.05
Cost of sales
Loss on early extinguishment of debt
(60)
(48)
(0.07)
Sundry income (expense) - net
Indemnification and other transaction
related costs 9
(115)
(93)
(0.13)
Cost of sales ($98 million); Sundry
income (expense) - net ($17 million)
Income tax related items 10
—
(153)
(0.22)
Provision for income taxes
Total significant items
$ (884)
$ (862)
$ (1.22)
Operating results (non-GAAP)
$ (149)
$ (280)
$ (0.40)
"Income (loss) before income taxes." "Net income (loss) available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. "Earnings (loss) per common share - diluted," which includes the impact of participating securities in accordance with the two-class method. Includes restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring program. Includes severance and related benefit costs and impairment charges related to the write-down of certain manufacturing facilities, corporate assets, leased non-manufacturing facilities and other miscellaneous assets associated with the Company's 2025 Restructuring program. Includes implementation costs associated with the Company's 2025 Restructuring Program and the sale of membership interests of the Company's formerly wholly owned subsidiary, Dow InfraCo, LLC. Relates to a gain on the sale of the Company's soil fumigation product line. Includes a gain associated with the reassessment of liabilities for certain accrued legacy agricultural products groundwater contamination matters, partially offset by the settlement of a separate claim related to water storage district legacy groundwater contamination matters. Primarily includes a charge related to an arbitration settlement agreement for historical product claims from a divested business. Also includes charges associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation. Relates to valuation allowances on deferred tax assets in certain foreign jurisdictions, partially offset by a tax basis adjustment related to the Company's consolidated infrastructure entity. Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
Cash flow from operations to net income is not applicable for the fourth quarter of 2025 and first quarter of 2026 due to a net loss for the period. Cash flow from operations to net income - trailing twelve months is not applicable due to a net loss for the trailing twelve months period. SOURCE The Dow Chemical Company
Dow Inc. (NYSE:DOW) will release earnings for its second quarter before the opening bell on Thursday, July 23.
Analysts expect the company to report quarterly earnings of $1.28 per share, versus a loss of 42 cents per share in the year-ago period. The consensus estimate for Dow’s quarterly revenue is $12.18 billion. It reported $10.1 billion last year, according to Benzinga Pro.
Ahead of quarterly earnings, Morgan Stanley analyst Vincent Andrews maintained Dow with an Equal-Weight rating on Monday and lowered the price target from $41 to $39.
With the recent buzz around Dow, some investors may be eyeing potential gains from the company’s dividends too. As of now, Dow has an annual dividend yield of 4.59%, which is a quarterly dividend amount of 35 cents per share ($1.40 a year).
To figure out how to earn $500 monthly from Dow, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Dow’s $1.40 dividend: $6,000 / $1.40 = 4,286 shares.
So, an investor would need to own approximately $130,594 worth of Dow, or 4,286 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.40 = 857 shares, or $26,113 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
DOW Price Action: Shares of Dow gained by 0.3% to close at $30.47 on Tuesday.
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U.S. stocks traded higher this morning, with the Dow Jones index gaining around 300 points on Tuesday.
Following the market opening Tuesday, the Dow traded up 0.57% to 52,137.20 while the NASDAQ climbed 0.69% to 25,685.34. The S&P 500 also rose, gaining, 0.44% to 7,476.18.
Leading and Lagging Sectors
Information technology shares jumped by 1.2% on Tuesday.
In trading on Tuesday, consumer staples stocks fell by 0.7%.
Top Headline
General Motors (NYSE:GM) reported better-than-expected second-quarter financial results and raised its FY26 adjusted EPS guidance with its midpoint above estimates.
General Motors reported quarterly earnings of $3.57 per share which beat the analyst consensus estimate of $3.20 per share. The company reported quarterly sales of $48.026 billion which beat the analyst consensus estimate of $47.011 billion.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded up 2.4% to $85.24 while gold traded up 1.1% at $4,059.50.
Silver traded up 3.1% to $58.845 on Tuesday, while copper rose 2.7% to $6.5105.
Euro zone
European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.1%, while Spain’s IBEX 35 Index rose 0.4% London’s FTSE 100 rose 0.2%, Germany’s DAX gained 0.1%, while France’s CAC 40 slipped 0.3%.
Asia Pacific Markets
Asian markets closed mixed on Tuesday, with Japan’s Nikkei 225 gaining 3.26%, Hong Kong’s Hang Seng index falling 0.04%, China’s Shanghai Composite rising 1.79% and India’s BSE Sensex falling 0.31%.
Economics
U.S. Redbook Index rose by 7.8% year-over-year in the week ending July 18.
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While DOW is expected to have benefited from its cost and productivity actions, soft demand in certain markets is likely to have hurt its Q2 performance.
U.S. stocks traded mixed midway through trading, with the Dow Jones index falling over 100 points on Monday.
The Dow traded down 0.21% to 52,036.64 while the NASDAQ climbed 0.79% to 25,720.74. The S&P 500 also rose, gaining, 0.40% to 7,487.38.
Leading and Lagging Sectors
Communication services shares jumped by 1.7% on Monday.
In trading on Monday, financial stocks fell by 0.4%.
Top Headline
Shares of Ryanair Holdings PLC (NASDAQ:RYAAY) fell more than 5% on Monday following weak first-quarter results.
Ryanair reported quarterly earnings of $1.19 per share which missed the analyst consensus estimate of $1.35 per share. The company reported quarterly sales of $5.097 billion which missed the analyst consensus estimate of $5.210 billion.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded down 0.2% to $82.34 while gold traded down 0.2% at $4,010.70.
Silver traded up 1.3% to $57.035 on Monday, while copper rose 1.3% to $6.3485.
Euro zone
European shares were lower today. The eurozone’s STOXX 600 declined 0.4%, while Spain’s IBEX 35 Index fell 0.1% London’s FTSE 100 fell 0.7%, Germany’s DAX declined 0.3%, while France’s CAC 40 slipped 0.2%.
Asia Pacific Markets
Asian markets closed mixed on Monday, with Hong Kong’s Hang Seng index gaining 2.36%, China’s Shanghai Composite rising 0.85% and India’s BSE Sensex falling 0.57%.
Economics
No major economic reports are scheduled for release today.
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The upcoming report from Dow Inc. (DOW - Free Report) is expected to reveal quarterly earnings of $1.20 per share, indicating an increase of 385.7% compared to the year-ago period. Analysts forecast revenues of $12.01 billion, representing an increase of 18.8% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 10.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Dow Inc. metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus among analysts is that 'Net Sales- Performance Materials & Coatings' will reach $2.16 billion. The estimate suggests a change of +1.4% year over year.
The average prediction of analysts places 'Revenues- Corporate' at $162.67 million. The estimate suggests a change of -0.8% year over year.
Analysts expect 'Net Sales- Packaging & Specialty Plastics' to come in at $6.66 billion. The estimate points to a change of +32.5% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Net Sales- Industrial Intermediates & Infrastructure' of $3.01 billion. The estimate suggests a change of +8% year over year.
Analysts predict that the 'Operating EBITDA- Packaging & Specialty Plastics' will reach $1.84 billion. Compared to the present estimate, the company reported $440.00 million in the same quarter last year.
The combined assessment of analysts suggests that 'Operating EBITDA- Performance Materials & Coatings' will likely reach $274.51 million. Compared to the current estimate, the company reported $344.00 million in the same quarter of the previous year.
View all Key Company Metrics for Dow Inc. here>>>
Over the past month, shares of Dow Inc. have returned -5.7% versus the Zacks S&P 500 composite's +0.6% change. Currently, DOW carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
U.S. stocks traded lower this morning, with the Dow Jones index falling more than 500 points on Friday.
Following the market opening Friday, the Dow traded down 0.98% to 52,037.01 while the NASDAQ dipped 1.77% to 25,422.98 The S&P 500 also fell, dropping, 1.15% to 7,447.23.
Leading and Lagging Sectors
Energy shares jumped by 1.6% on Friday.
In trading on Friday, communication services stocks fell by 2.9%.
Top Headline
Netflix Inc. (NASDAQ:NFLX) shares dipped more than 10% on Friday after the company reported mixed second-quarter financial results and issued weak guidance for the third quarter.
Netflix reported second-quarter revenue of $12.56, up 13% year-over-year. The revenue total missed a Street estimate of $12.59 billion, according to data from Benzinga Pro. Second-quarter earnings of 80 cents per share beat a Street consensus estimate of 79 cents per share.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded up 3% to $81.35 while gold traded up 0.1% at $3,992.20.
Silver traded down 1.4% to $55.415 on Friday, while copper fell 2.2% to $6.2055.
Euro zone
European shares were lower today. The eurozone’s STOXX 600 declined 0.8%, while Spain’s IBEX 35 Index fell 0.9% London’s FTSE 100 slipped 0.4%, Germany’s DAX declined 0.7%, while France’s CAC 40 dipped 0.8%.
Asia Pacific Markets
Asian markets closed mostly lower on Friday, with Japan’s Nikkei 225 dipping 4.03%, Hong Kong’s Hang Seng index falling 1.78%, China’s Shanghai Composite dipping 3.05% and India’s BSE Sensex gaining 1.25%.
Economics
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Wall Street's main indexes opened lower on Friday as investors continued to pull back from semiconductor stocks, extending a broader reassessment of the artificial intelligence-driven rally that had powered markets to record highs earlier this year.
The Dow Jones Industrial Average fell about 486 points, or 0.9%, while the S&P 500 lost 1.1%.
The Nasdaq Composite dropped 1.7%, reflecting renewed weakness across technology stocks.
The latest decline followed another sharp selloff in semiconductor shares on Thursday, with investors questioning whether the pace of AI-related capital spending can be sustained after months of strong gains.
Chip stocks led the market lower in trading as the sector's recent pullback accelerated.
Nvidia shares fell about 3.4%, while Applied Materials and Lam Research each dropped more than 5%.
Intel, KLA Corporation, Arm and Micron Technology also traded lower.
The iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH) both declined more than 3%.
The Philadelphia Semiconductor Index remained under pressure after hitting a nearly two-month low on Thursday.
The benchmark has fallen more than 19% from its late-June record high and was on track for its worst weekly performance since March 2025.
The weakness came despite strong quarterly results from Taiwan Semiconductor Manufacturing Co. (TSMC) and upbeat guidance from ASML, suggesting investors remain focused on broader concerns surrounding AI infrastructure spending rather than company-specific earnings.
The selloff was not limited to US markets.
Semiconductor shares also weakened across Asia-Pacific and European markets on Friday.
Chinese startup Moonshot AI also added to competitive concerns after unveiling a new artificial intelligence model that it said narrows the gap with leading US offerings.
Technology stocks faced additional pressure after Netflix forecast third-quarter revenue and earnings below Wall Street expectations.
Netflix shares plunged more than 11% in trading despite reporting second-quarter results that were broadly in line with analyst estimates.
Elsewhere, Intuitive Surgical fell 11% after maintaining its da Vinci procedure growth forecast and warning that insurance-plan changes may be delaying patient care.
Investors also awaited the University of Michigan's consumer sentiment survey and industrial production data later in the day, which were expected to provide further insight into the health of the US economy following a busy week of inflation reports and second-quarter earnings.
Although major US banks delivered solid earnings earlier in the week and recent inflation data came in softer than expected, those positives failed to offset mounting concerns surrounding technology valuations.
Geopolitical tensions remain in focusInvestors also monitored escalating tensions in the Middle East.
The US military said it completed its sixth consecutive evening of strikes against Iran, targeting military infrastructure, logistics assets and maritime capabilities.
Iran, meanwhile, said it had targeted US military forces in Syria and Bahrain, while Kuwait reported that an Iranian attack struck a power and water desalination plant.
The renewed conflict has further weakened the fragile truce reached last month and continued to disrupt energy flows through the Strait of Hormuz, a critical shipping route that normally carries around one-fifth of global oil supplies.
Oil prices moved higher amid the geopolitical developments. US West Texas Intermediate crude traded above $81 a barrel, while Brent crude rose above $86 a barrel.
The CBOE Volatility Index, often viewed as Wall Street's fear gauge, also climbed to its highest level in more than a week as investors adopted a more cautious stance heading into Friday's session.
Dow Inc. (DOW - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis materials science is expected to post quarterly earnings of $1.20 per share in its upcoming report, which represents a year-over-year change of +385.7%.
Revenues are expected to be $12.01 billion, up 18.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 10.54% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Dow Inc.?For Dow Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.37%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Dow Inc. will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Dow Inc. would post a loss of$0.39 per share when it actually produced a loss of -$0.14, delivering a surprise of +64.10%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Dow Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street looked set for a mixed open Thursday with further yo-yoing in technology stocks amidst a fresh batch of corporate earnings.
Futures pointed to the Dow Jones opening 0.2%, while the S&P 500 was called down 0.2% and the Nasdaq looked set to bear the brunt of the selling, with futures off 0.8% as semiconductor stocks see pressure.
Oil prices were little changed, with West Texas Intermediate trading just below $80 a barrel, despite further escalation in the Middle East.
Iran's military said it had launched missiles and drones at US military positions in Kuwait, Bahrain and Jordan in retaliation for an earlier US strike, while Reuters reported Tehran had instructed Yemen's Houthi movement to prepare to close the Bab el-Mandeb Strait if Washington attacks Iran's power infrastructure, raising the prospect of disruption to a second key global shipping route.
The three major US indexes all finished higher on Wednesday after softer-than-expected producer price inflation reinforced expectations that the Federal Reserve will leave interest rates unchanged later this month.
The Dow rose 150 points, or 0.3%, to 53,141.48, the S&P climbed 0.4% to 7,614.75, and the Nasdaq Composite added 0.6% to close at 25,654.64.
Weakness in Asian semiconductor names seemed to spill into US futures, as markets were unimpressed with Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) beating expectations with a 77% jump in quarterly profit and upbeat guidance, citing "extremely robust" demand for AI chips. TSMC shares fell about 5% in US premarket trading though.
That follows a similar negative reaction to strong results from Dutch chip equipment maker ASML, highlighting investors' increasingly demanding expectations for AI-linked companies.
Before attention turns to Netflix Inc (NASDAQ:NFLX, XETRA:NFC) after the closing bell, there are a swathe of life science updates ahead of the open.
UnitedHealth Group Inc (NYSE:UNH, XETRA:UNH) rose 6% in premarket trading after the health insurer beat second-quarter earnings expectations and raised its full-year guidance, helped by stronger operational performance despite membership headwinds.
Abbott Laboratories (NYSE:ABT) gained 3.3% as investors welcomed better-than-expected quarterly results and an upbeat outlook.
Merck & Co Inc (NYSE:MRK, XETRA:6MK) added over 1% after the FDA approved its first-in-class cholesterol pill Liprendra, while second-quarter sales edged ahead of forecasts and the drugmaker reiterated its growth outlook.
AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) surged almost 34% after agreeing to a $2.8 billion takeover by Eli Lilly, with the deal including additional milestone payments that could take the total value to $3.8 billion.
Prologis Inc (NYSE:PLD) was little moved after the logistics property group beat forecasts on both funds from operations and revenue in the second quarter, signalling resilient demand for warehouse space.
From the financials, State Street Corp (NYSE:STT) climbed after the custodian bank topped expectations for earnings, revenue, net interest income and assets under management in the second quarter.
Dow Inc. is rated a buy, with a tactical approach to accumulate shares under $30 and take profits near $40. North American production gives DOW a structural advantage as global natural gas prices rise, especially amid European and Asian supply risks. Cost-cutting measures and favorable market dynamics, partly driven by the Iran conflict, are stabilizing earnings despite recent sales and net loss declines.
In the latest close session, Dow Inc. (DOW - Free Report) was down 2.01% at $29.70. This move lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.62%.
Prior to today's trading, shares of the materials science had lost 8.04% lagged the Basic Materials sector's loss of 6.47% and the S&P 500's gain of 1.61%.
The investment community will be paying close attention to the earnings performance of Dow Inc. in its upcoming release. The company is slated to reveal its earnings on July 23, 2026. The company's upcoming EPS is projected at $1.2, signifying a 385.71% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $12.01 billion, showing a 18.82% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.78 per share and a revenue of $44.27 billion, signifying shifts of +395.74% and +10.76%, respectively, from the last year.
Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.53% upward. Dow Inc. is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Dow Inc. is currently being traded at a Forward P/E ratio of 10.89. This expresses a discount compared to the average Forward P/E of 16.03 of its industry.
We can additionally observe that DOW currently boasts a PEG ratio of 0.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Chemical - Diversified industry stood at 1.25 at the close of the market yesterday.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Monday's market pain flipped into some modest Tuesday gains.
The Nasdaq Composite (^IXIC +1.12%) index rose 0.9% by 12:05 p.m. ET, extending its recovery from a volatile morning session. The S&P 500 (^GSPC +0.47%) gained 0.3%, while the Dow Jones Industrial Average (^DJI 0.02%) fell 0.2%.
^IXIC data by YCharts
SK Hynix (SKHY +23.59%) surged 18.5%, recovering Monday's 8.4% decline and then some. The memory chipmaker inspired a broad semiconductor rally that underpinned the Nasdaq Composite jump. The semiconductor sector led this recovery after yesterday's sell-off, which was triggered by a historic collapse in Korean markets.
IBM's "we didn't see this coming" moment The catalyst for Tuesday's chip rally came from an unexpected source: IBM (IBM 24.33%) admitting it misjudged a massive shift in corporate spending priorities.
In a premarket warning, CEO Arvind Krishna said "numerous large deals" failed to close in the final weeks of June because customers had decided they'd rather spend money on servers, storage, and memory chips than on IBM software and services.
"While we anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex reprioritization," Krishna wrote in a preliminary Q2 report, adding that IBM had "faltered" in adapting quickly enough.
In other words, many companies are panic-buying hardware before prices go up, and IBM's sales team watched helplessly as the software portions of IT budgets got redirected to chipmakers.
IBM shares collapsed 24.9%, erasing 429 Dow points. It's Big Blue's worst market day since the Black Monday crash in 1987.
On the other hand, IBM's pain is the chip industry's gain. Most semiconductor stocks trended up on Tuesday, led by a 2.6% Nvidia (NVDA +4.28%) jump and a 5.1% gain for Micron Technology (MU +4.81%) shareholders.
Financial services giant Goldman Sachs (GS +7.92%) reported a quarter so strong it shielded the Dow from IBM's impact. Goldman smashed Wall Street's Q2 2026 targets across the board. The company benefits from broad market volatility and several gigantic public offerings. Goldman was a lead underwriter for the SK Hynix and Space Exploration Technologies (SPCX 0.15%) offerings, for instance.
Image source: The Motley Fool.
The investment bank jumped 7.4%, single-handedly adding 459 Dow points.
In other news, Federal Reserve Chairman Kevin Warsh told Congress that inflation is a "tax on the American people." Warsh promised "regime change" at the central bank.
Wall Street also enjoyed a mild inflation report. The June Consumer Price Index rose 3.5% year over year, below the 3.8% estimate but still well above the Fed's 2% long-term target. Markets were pricing in a 51.9% chance of a September rate hike before the data dropped.
Meanwhile, oil prices climbed 2%. The U.S. military conducted a third consecutive night of strikes against Iran, and the United Arab Emirates reported at least two tankers came under Iranian fire. President Trump said trade deals with Gulf states would replace the 20% Strait of Hormuz shipping fee he'd proposed on Monday. The renewed military strikes are undermining the diplomatic progress that lowered June's inflation figures.
Index
Dow Jones Industrial AverageToday's Change
(
-0.02
%)
-10.96
Index Level
52,487.68
The bigger picture Tuesday's market action confirms the ongoing rotation into hardware and away from software. Technology and financial stocks are doing the heavy lifting, while industrials and consumer names are mostly treading water.
SK Hynix's 18.5% bounce one day after falling below its IPO price is either a sign that Monday's sell-off was overdone or proof that tech valuations have become fundamentally unpredictable.
Anders Bylund has positions in International Business Machines, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Goldman Sachs Group, International Business Machines, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
Stocks fell and oil prices rose near $80 a barrel Monday after President Trump announced a new blockade and tolls on the Strait of Hormuz while investors remained jittery about tech stocks – signaling more bouts of choppy trading could be in store.
The Dow Jones Industrial Average fell 152 points, or 0.3%, by approximately 12:50 p.m. ET, while the S&P 500 and Nasdaq slid 0.6% and 1.3%, respectively – led by steep declines in chipmakers and AI-exposed stocks.
In a Truth Social post Monday morning, Trump said the strait is open – but announced, “We are reinstating the [sic] THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving.”
Stocks fell and oil prices rose near $80 a barrel Monday. Getty Images “The USA will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’ but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped.”
The announcement – after the US and Iran exchanged fresh rounds of strikes over the weekend – reheated fears that the world’s worst-ever energy supply disruption could last for weeks or months longer without a permanent peace deal, driving prices higher.
Brent crude oil rose 5.5% to $80.15 a barrel, while West Texas Intermediate jumped 5.1% to $75.08.
National average gasoline prices were $3.87 a gallon as of Monday, down from highs of $4.56 a gallon this spring – but the decline in gasoline has slowed over the past few weeks as the US and Iran disagree over the control of the strait.
Meanwhile, chipmakers extended their losses – and SpaceX and SK Hynix saw declines after their record-breaking IPOs – as investors worry companies may be overspending on the new tech, creating an “AI bubble.”
“I expect choppier trading in AI and semiconductor stocks over the next several weeks,” Scott Martin, partner at Kingsview Wealth Management, told The Post – nodding to dual pressures from tensions in the Strait of Hormuz and an AI trade coming off an extraordinary run.
However, he argued investors should not necessarily take the downturn as a sign that the AI trade is doomed.
Smoke rises from a port near the Strait of Hormuz following a reported US strike on July 8. Social Media via REUTERS “Markets that reach record highs rarely move in a straight line, and profit-taking after a rally like this is healthy, not necessarily troublesome,” Martin said. “I don’t view this as the beginning of a broad market collapse, but investors should expect more volatility as earnings season unfolds.”
The major question top of mind for investors, he said, is not whether AI spending can eventually lead to long-term growth, but whether current earnings can justify how much and how fast companies are spending.
US-listed shares of SK Hynix fell 6.8% after soaring 13% on Friday in their debut on the Nasdaq. South Korean shares in the company also plunged.
Shares of SpaceX – which last month broke the record for the largest-ever IPO – slipped for a second trading day, falling 4.3% to $139.02 – nearing its initial $135 price.
President Trump announced a new blockade and tolls on the Strait of Hormuz. AP Photo/Alex Brandon Chipmakers including Micron, Sandisk, AMD, Intel and Samsung slumped 5.2%,12.2%, 3.7%, 5.9% and 10.7%, respectively.
Ahead of what is expected to be a blowout earnings week, US banks including JPMorgan, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo dipped 0.7%, 1%, 1.2%, 0.7%, 1.7% and 0.2%, respectively.
Based on forecasted trailing earnings, the S&P 500 P/E ratio also increased to 25.8, significantly higher than its long-term average. If the AI results are strong, this rally might continue in the short term. But the current valuations leave little room for disappointment. If the inflation remains the issue and the Fed keeps the focus on the higher interest rates, then the correction from these levels might be deeper.
Dow Jones Forecast: Bullish Momentum Targets 55,000 The Dow could benefit if the market rally continues to spread to other sectors such as industrial, financial and healthcare firms. But the Dow could be more directly impacted by tariffs than the technology heavy Nasdaq.
Many Dow companies depend on the global supply chains, imported materials and consumer demand. If businesses are unable to pass on these increased costs to their customers, then they could see a decline in their margins. On the other hand, an increase in oil prices or US Treasury yields may introduce some pressure.
From a technical perspective, the Dow Jones remains in a strong bullish trend and looks for further upside in the short term. The emergence of an inverted head and shoulders pattern from 2021 to 2023, followed by the wedge pattern from 2024 to 2026, indicates that the Dow Jones is moving toward 55,000.
The wedge pattern defines this target. The V-shaped recovery patterns in April 2025 and March 2026 indicate that the momentum remains strong.
US stocks ended higher on Friday, with the S&P 500 closing just shy of a record high as enthusiasm around artificial intelligence and semiconductor stocks offset concerns over renewed tensions in the Middle East.
Investors also turned their attention to the start of the second-quarter earnings season next week, when major US banks will begin reporting results.
The Dow Jones Industrial Average rose 148.28 points, or 0.28%, to 52,635.69. The S&P 500 gained 0.38% to close at 7,572.36, while the Nasdaq Composite added 0.25% to finish at 26,273.21.
The benchmark S&P 500 finished the week up roughly 1%, while the Nasdaq also advanced more than 1%. The Dow, however, ended the week slightly lower.
Artificial intelligence remained a key driver of market sentiment after South Korean memory-chip maker SK Hynix made its Nasdaq debut.
The company opened at $170, about 14% above its American depositary receipt offering price of $149 after raising more than $26 billion in one of the world's largest share sales.
The listing renewed investor optimism around memory-chip makers despite recent volatility across the semiconductor sector.
Nvidia rose more than 3% on Friday, helping lead gains in the S&P 500.
Meta Platforms jumped around 6%, marking its strongest weekly performance since early 2024 after Bank of America reiterated its Buy rating.
Investor sentiment was also supported by reports suggesting Meta could improve the cost efficiency of its artificial intelligence infrastructure.
Although chip stocks have faced profit-taking in recent weeks, they remain among the year's strongest performers.
Micron Technology has surged more than 200% in 2026, while Lam Research, Marvell Technology and Intel have all more than doubled year to date.
Global markets also reflected mixed sentiment.
South Korea's Kospi gained 2.5%, while Japan's Nikkei 225 rose 1.2%. China's CSI 300 declined 1.96%, weighed down by technology and industrial stocks. Europe's Stoxx 600 index finished little changed.
Middle East tensions remain in focusInvestors continued to monitor developments in the Middle East after renewed military exchanges between the United States and Iran earlier this week raised concerns about higher energy prices and inflation.
Market sentiment improved after President Donald Trump said Iran had requested to continue negotiations and that the United States had agreed, although he also stated that the June ceasefire was over.
Officials from Qatar and Pakistan are also working to facilitate renewed discussions between the two sides, while an administration official told MS Now that technical talks would continue despite the latest military actions.
The easing in oil prices following those developments helped support equities after Thursday's rally.
Investors are now preparing for the second-quarter earnings season, which begins next week with reports from major US banks.
According to LSEG I/B/E/S data, analysts expect S&P 500 earnings to increase 24% from a year earlier, with technology companies expected to account for much of the growth.
Despite the benchmark index trading near record highs, the S&P 500's forward price-to-earnings ratio has eased to around 20 times expected earnings from 21 times in late May, reflecting stronger corporate earnings expectations.
Markets will also closely watch next week's US inflation report and testimony from Federal Reserve Chair Kevin Warsh before the House Committee on Financial Services for further clues on the outlook for interest rates.
Income investors chasing double-digit yields are often buying a warning sign in disguise. A payout that looks generous today can vanish tomorrow if earnings, free cash flow, or the balance sheet cannot support it. Several once-reliable dividend payers have already reset their payouts over the past year, and a few still look stretched even after the cut.
A dividend becomes unsustainable when the company cannot fund it out of recurring earnings and free cash flow without leaning on debt or asset sales. The cleanest check is EPS payout coverage for ordinary corporates, backed up by free cash flow after capital expenditures and a look at leverage trends. When those signals all point the wrong way, the yield is doing the talking, and the fundamentals are not.
Huntsman (HUN) Huntsman (NYSE:HUN | HUN Price Prediction) already cut the quarterly payout from $0.25 to $0.0875 in Q4 2025, a roughly 65% cut. Even at the reset $0.35 annualized rate, the story is not reassuring. Shares trade at $10.81, and the stock is down 48.71% over five years.
The specialty-chemicals business has posted eight consecutive quarters of negative EPS through Q1 2026, including -$0.37 in Q4 2025 and -$0.20 in Q1 2026. Free cash flow was $116 million in 2025 against $146 million in dividend payouts, and Q1 2026 operating cash flow ran negative $53 million. With losses persisting and net debt rising, even the smaller dividend depends on a chemicals recovery that has yet to arrive.
Nordic American Tankers (NAT) Nordic American Tankers (NYSE:NAT) offers one of the most cyclical payouts on the market. The board just declared a $0.22 dividend for Q2 2026, up from $0.04 in Q4 2024, a swing of roughly 450% in eighteen months. That variability is the whole warning.
Alpha Vantage lists trailing EPS of $0.27 against a $0.62 dividend per share, meaning the current payout depends on the rate environment rather than steady earnings. Full-year 2025 operating cash flow of $19.84 million was dwarfed by capex of $136.45 million, with total liabilities up sharply year over year. Shares are up 156.19% over the past year, but that rally is riding Suezmax spot rates. CEO Herbjørn Hansson has been explicit that dividends move with the market, meaning when rates soften, so will the check.
Newell Brands (NWL) Newell Brands (NASDAQ:NWL) already took the axe to its dividend once, cutting the quarterly payout from $0.23 to $0.07 effective Q1 2023, roughly a 70% reduction. Three years later, coverage still looks fragile. The stock trades near $5.16, down 84.05% over ten years.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dow didn't make the cut. Grab the names FREE today.
The owner of Rubbermaid, Sharpie, and Yankee Candle has reported three consecutive years of net losses (2023 through 2025), including a $285 million loss in 2025. Operating cash flow fell from $930 million in 2023 to $264 million in 2025, and Q1 2026 delivered negative $233 million in operating cash flow while still paying $36 million in dividends. Gross debt sits near $5 billion with interest expense climbing. Normalized EPS covers the dividend on paper, but GAAP earnings and cash flow do not.
BCE Inc. (BCE) BCE Inc. (NYSE:BCE) has already reset its dividend once. Quarterly payments are already down more than 50% in the last two years, with the latest ex-dividend at $0.313. Even after the reset, the Canadian telecom’s payout ratio remains under scrutiny.
Management has guided 2026 adjusted EPS to decline 5% to 11%, and Q1 2026 adjusted EPS already fell to $0.4625 from $0.51 a year earlier. The Ziply Fiber acquisition and a $1.7 billion Saskatchewan AI data center build (with $1.3 billion of that capex in 2026) are being funded with debt and cash on hand. Shares are down 39% over five years and down almost 8% year to date. Analyst sentiment reflects the caution, with six holds, one sell, and two strong sells alongside the buy ratings.
Dow Inc. (DOW) Dow Inc. (NYSE:DOW) is the textbook case of a dividend that was cut and still is not earned. The board reduced the quarterly dividend from $0.70 to $0.35 beginning Q3 2025, a 50% haircut, and has held it there for four quarters running.
Yet coverage remains a problem. Full-year 2025 free cash flow was negative $1.447 billion against dividend payouts of $1.49 billion, with a net loss of $2.623 billion. Reported EPS has been negative in four of the last five quarters through Q1 2026, with Q1 2026 at -$0.14. Shares are down 40% over five years, and while local prices reportedly firmed in early 2026, management’s own “Transform to Outperform” language points to cost cuts and asset actions rather than an earnings snapback. Until operating cash flow returns to covering both capex and the payout, the reset $1.40 annualized dividend still relies on the balance sheet.
The Bottom Line Every name on this list carries a yield the market is pricing skeptically for a reason. Two, Huntsman and Newell, have already cut and remain under pressure. BCE and Dow have reset payouts that still are not comfortably covered by earnings or free cash flow. Nordic American’s payout floats with tanker rates and has swung dramatically in recent quarters. A dividend cut typically drags the share price with it. Yield alone has never been a thesis, and coverage math should always come first.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dow didn't make the cut. Grab the names FREE today.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Dow Inc.?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Dow Inc. (DOW - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.23 a share, just 14 days from its upcoming earnings release on July 23, 2026.
DOW has an Earnings ESP figure of +2.53%, which, as explained above, is calculated by taking the percentage difference between the $1.23 Most Accurate Estimate and the Zacks Consensus Estimate of $1.2. Dow Inc. is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
The S&P 500, Dow Jones Industrial Average (Dow), and Nasdaq Composite are all stock market indexes used to measure the performance of various aspects of the U.S. stock market. The indexes generally rise and fall together, however the extent of gains or losses produced by each can differ depending on market conditions and the state of the economy.
The indexes differ in several key ways such as weighting methods, coverage, and criteria for including stocks. The S&P 500 assigns weightings based on market capitalization, includes roughly the 500 largest U.S. stocks spanning 11 sectors, and offers a more comprehensive view of the broad market’s performance. The Nasdaq also employs market cap weighting but includes over 3,000 stocks with a heavy focus on the technology sector, making it a popular benchmark for technology and growth companies. In contrast, the Dow is a smaller index consisting of 30 well-established “blue-chip” stocks, with weightings based on stock prices, making it a more conservative and limited representation of the broader market.
In this article, we examine these three indices and how they have changed since their peaks from 2000. We’ve updated the data through the June 2026 close.
Here are two overlays — one with the nominal price, excluding dividends, and the other with the price adjusted for inflation based on the Consumer Price Index (CPI) for urban consumers. At the end of June, the S&P 500 finished down 1.1%, the Dow 30 finished up 2.5%, and the Nasdaq finished down 2.8% from May.
When adjusted for inflation, the real month-over-month changes for each index become -1.7% for the S&P 500, 1.9% for the Dow 30, and -3.4% for the Nasdaq.
The charts require little explanation. The first 15 years of the 21st century was not kind to equity investors. However, the market has bounced back over the last 10 years with each index growing 149% (S&P 500), 127% (Dow), and 164% (Nasdaq) in real terms.
ETF Performance Performance of the SPY ETF Since 2000 Peak The SPY ETF is designed to track the performance of the S&P 500. Let’s take a look at the return on $1,000 invested in the SPY ETF at its March 2000 peak.
The total return certainly looks better over 25 years later, but the real (inflation-adjusted) purchasing power of that $1,000 is currently $3,930, a real compounded annual return of 5.34%.
Performance of the DIA ETF Since 2000 Peak The DIA ETF is designed to track the performance of the Dow Jones Industrial Average. Now, let’s take a look at the return on $1,000 invested in the DIA ETF at its January 2000 peak.
Again, the total return looks better over 25 years later, but the real purchasing power of that $1,000 is currently $3,918, a real compounded annual return of 5.29%.
Performance of the QQQ ETF Since 2000 Peak The QQQ ETF is designed to track the performance of the Nasdaq-100 Index. In our last chart, let’s look at the return on $1,000 invested in the QQQ ETF at its March 2000 peak.
The real purchasing power of that $1,000 is currently $3,875, a real compounded annual return of 5.28%.
Originally published on Advisor Perspectives.
For more news, information, and analysis, visit the Equity ETF Content Hub.
Stocks plunged and oil prices jumped to nearly $80 a barrel after President Trump said Wednesday the ceasefire with Iran is “over” and the US is preparing another night of strikes in the region after Tehran attacked vessels in the Strait of Hormuz.
The Dow Jones Industrial Average fell 1.3%, or 693 points, by about 10:40 a.m. ET, while the S&P 500 and Nasdaq slumped 0.7% and 0.5%, respectively.
Brent crude oil futures jumped 7.5% to $79.71 a barrel while West Texas Intermediate crude increased 7.2% to $75.52 a barrel.
US stocks plunged after President Trump said the ceasefire with Iran is “over.” Getty Images The national average gasoline price was roughly $3.80 a gallon Wednesday, according to AAA, far below wartime highs of $4.56 – but the price has remained roughly flat over the past few days as US-Iran tensions have reheated.
There is typically a one- to two-week lag between movements in the oil markets and prices at the pump – and fresh tensions over the strait, a vital maritime route for 20% of the world’s oil, could keep gasoline from falling below the $3 mark.
Asked Wednesday at a NATO summit in Ankara, Turkey, whether the preliminary peace deal with Iran was dead, Trump replied: “To me, I think it’s over. I don’t want to deal with them anymore. They’re scum.”
“We hit them very hard last night,” he added. “We’ll probably hit them hard again tonight.”
Last month, Trump signed a memorandum of understanding giving the US and Iran 60 days to reach a final agreement on Tehran’s nuclear program, sanctions relief and the unfreezing of billions of dollars worth of Iranian assets.
The US military on Tuesday launched “powerful” overnight strikes against Iran in response to the nation’s attacks on three commercial ships near the strait, which American officials viewed as a violation of the memorandum.
Robert Edwards, chief investment officer of Edwards Asset Management, said the market moves on Wednesday were a clear sign that geopolitical tensions remain front and center – but there’s no reason to sound the alarms yet.
“This is the most noticeable escalation of Iran tensions since the ceasefire took hold almost one month ago, and the typical market playbook has commenced, with rising oil prices, rising bond yields and falling stock prices,” Edwards said in a note Wednesday.
President Trump said he doesn’t “want to deal with” Iran anymore. POOL/AFP via Getty Images “Any downside moves in stocks over the next few weeks are a buying opportunity, as I still see the S&P 500 reaching 7,700 by year-end, largely due to earnings strength, which has thrived throughout this period of geopolitical uncertainty.”
Energy stocks also jumped Wednesday as investors anticipated higher earnings from industry giants.
Shares in ConocoPhillips, Marathon Petroleum, Chevron and Exxon Mobil rose 2.5%, 4.3%, 2.2% and 0.9%, respectively.
Meanwhile, tech stocks – especially chipmakers – continued to fall as investors remain concerned about a potential “AI bubble” from massive spending on future technologies.
National average gasoline prices have fallen from their wartime highs, but have yet to dip below the $3 mark. John McCoy for CA Post Shares in Samsung, Intel and AMD fell 6.3%, 2.6% and 0.7%, respectively.
Investors are looking ahead to the release of the Federal Reserve’s June minutes at 2 p.m. ET Wednesday for more insight into Kevin Warsh’s first meeting as chairman – especially after he took a surprisingly hawkish anti-inflation stance.
Though the majority of traders still expect policymakers to hold interest rates at their meeting later this month, the long-term outlook has flipped from rate cuts to rate hikes, according to CME FedWatch.
Index Dow Jones -1,46 % na 52151,34 b. S&P 500 -0,96 % na 7431,92 b. Nasdaq Composite -0,96 % na 25571,6 b.
Ve středeční seanci se americké indexy nacházejí v červených úrovních a to poté, co americký prezident Donald Trump vyjádřil pochybnosti o stavu prozatímní mírové dohody s Íránem a prohlásil, že dohoda skončila. Nálada investorů byla nejistá už před komentáři amerického prezidenta. Íránské ozbrojené síly ve středu oznámily, že zaútočily na americké vojenské objekty v Kuvajtu a Bahrajnu v odvetě na americké útoky na cíle v Íránu a rozhodnutí Washingtonu zrušit výjimku ze sankcí na íránskou ropu. Podle názoru analytikůnejnovější eskalace na Blízkém východě nutí trhy znovu zavést geopolitickou rizikovou prémii, kterou mnoho investorů již začalo odepisovat. V posledních týdnech se pozornost přesunula zpět k růstu, inflaci a politice centrální banky. Dnešní krok je připomínkou toho, že geopolitický vývoj se může rychle znovu dostat do centra pozornosti,“ řekl Andreas Lipkow, hlavní analytik trhu ve společnosti CMC Markets. Trhy se nyní soustředí na zápis z červnového zasedání Fedu o měnových politikách, které má být zveřejněno ve středu, aby získaly nový vhled do toho, jak tvůrci politik vyvažují odolnou ekonomickou aktivitu s přetrvávajícími inflačními riziky. Investoři budou hledat jakoukoli diskusi o tom, zda nedávná ekonomická data a geopolitický vývoj změnily uvažování centrální banky o načasování budoucích politických kroků.
V centru zájmu investorů je také ropa , protože znovu obnovený konflikt prudce zvyšuje ceny ropy a znovu tak vyvolal obavy, že inflace způsobená energií by mohla zkomplikovat politickou politiku Federálního rezervního systému. Podle dnešního reportu od EIA Zásoby surové ropy ke dni 3. července vzrostly o 2,998 mil. barelů, když trh předpokládal naopak pokles zásob o -1,9 mil. barelů. WTI dnes přidává cca 7% a dostává se k úrovni 75,4 USD/barel. tato situace růstu ceny černého zlata nahrává do karet akciím v těžebním sektoru a tak akcie Marathonu Petroleum ( MPC ) si připisují zisk cca 4,7% a také akcie Occidentalu Petroleum ( OXY ) se pohybují s podobným nárůstem o něco výše 5,5%. Pozadu nejsou také akcie známého těžaře APA ( APA ), které se na tržní ceně posouvají výš o cca 3,5% a ještě lépe jsou na tom akcie Baker Hughes ( BKR ), které posilují o solidních 4,5%. Daří se také akciím britské skupiny BP ( BP ), jež rostou o cca 1,7% a za zmínku stojí také akcie společnosti Transocean ( RIG ), která těží ropu z věží v oceánu a její akcie přidávají cca 4%. Za zmínku stojí také akcie dodavatele a výrobce těžní techniky Halliburtonu ( HAL ), kde akcie rostou o cca 3,5% a také akcie jeho francouzského konkurenta Schlumbergeru ( SLB ) se pohybují také v kladných se ziskem cca 1,5%.
Naopak se dnes nedaří žlutému kovu, který ztrácí -4.4% a dostává se k úrovni 4 040 USD/Troy. unci. Tato situace není příznivá pro akcie v těžebním sektoru zlata a tak akcie největšího kanadského těžaře Barrick Mining ( B ) oslabují o -4,7% a také akcie jeho amerického konkurenta Newmontu ( NEM ) se pohybují v červených se ztrátou -3,6%. Za zmínku stojí také akcie známého těžaře Eldorado Gold ( EGO ), které oslabují o více než 7,7%.
Z technologického sektoru společnost Apple ( APPL ) v rámci svého závazku zvýšit výdaje na komponenty vyráběné v USA oznámila rozšíření spolupráce s výrobcem čipů Broadcom (+4,5 %). Hodnota nového kontraktu by měla přesáhnout 30 miliard USD. Součástí partnerství bude výroba více než 15 miliard čipů v USA, což podle Applu podpoří vznik stovek pracovních míst. Firma zároveň pomůže společnosti Broadcom s modernizací výrobních kapacit v americkém státě Colorado.
Z indexu S&P 500 si dnes dobře vedou, akcie Valero Energy Corp ( VLO ) které posilují o 5,9% a hned v závěsu jsou akcie Phillips 66 ( PSK ) 5,1% a také Super Micro Computer ( SMCI ) 3,3%. Naopak v červených se pohybují akcie společnosti Smurfit Westrock ( SW ) se ztrátou -7,6%, dále výrobce očkovacích vakcín akcie Moderny ( MRNA ) -7% a také Palantir Technologies ( PLTR ) -4,8%.
Index S&P 500 -0,96 % na 7431,92 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +2,1 % Základní materiály -3,1 % Nezbytná spotřeba +0,3 % Zbytná spotřeba -2,1 % Utility +0 % Průmysl -1,6 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Valero Energy Corp (VLO) +5,9 % Smurfit Westrock (SW) -7,6 % Occidental Petroleum Corp (OXY) +5,5 % Moderna (MRNA) -7,0 % Marathon Petroleum Corp (MPC) +5,2 % Amcor (AMCR) -6,6 % Phillips 66 (PSX) +5,1 % DoorDash (DASH) -6,4 % Casey's General Stores (CASY) +4,5 % Builders FirstSource (BLDR) -6,3 %
Luboš Bedrník
Fio banka, a.s.
Prohlášení
The CNBC Business News Update with Jessica Ettinger features market numbers & news with CNBC expert analysis and sound from top business names. Updated throughout the business day.
Key Takeaways Dow Jones tops 53,000 as financials and selective tech exposure fuel the record-breaking rally.Lower AI exposure may help the Dow outperform if richly valued tech stocks face a correction.DIA offers diversified exposure to the Dow as investors assess whether the rally can continue. The Dow Jones Industrial Average index hit a record high of 53,000 for the first time on July 6, 2026, per CNBC. The Dow Jones index advanced 8.9% during the first six months of this year, marking its best first-half performance since 2021. Let’s find out what’s driving the rally and whether the momentum can last.
Note that unlike most major indexes, the Dow is price-weighted, meaning higher-priced stocks have a greater influence on index performance. The index contains only 30 stocks, making it less diversified than broader benchmarks like the S&P 500.
SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) ETF is well diversified across its holdings, with no single holding accounting for more than 12.24% of the portfolio. Financials (27.2%), information technology (18.38%), and industrials (18.25%) are the top three sectors.
Growing Tech ExposureToday’s investing world is all about technology and artificial intelligence (AI). Although the Dow Jones has traditionally been a value-centric index, which has caused it to underperform the tech-heavy Nasdaq-100 and the S&P 500 at times, the 30-stock blue-chip index has been adding more tech stocks lately.
In late June, Alphabet (GOOGL - Free Report) officially entered the Dow Jones Industrial Average. However, the S&P 500 still has about 40% exposure to the technology sector, and the Nasdaq-100 has about 55% exposure to the IT sector (read: Alphabet Joins Dow Jones: ETF Likely to Benefit).
Heavy On FinancialsThe Dow Jones is heavy on the financial sector. Meanwhile, Financial Select Sector SPDR Fund (XLF - Free Report) is up about 8% over the past month. The resolution of the Iran crisis, chances of a dovish Fed amid weak June jobs data and the resultant steepening of the yield curve have boosted the financial sector's market performance. Plus, upbeat big-bank earnings and strong deal activity driven by mega IPOs are tailwinds for the sector.
Cheaper Valuation of Financial SectorThe financials sector currently trades at a forward price-to-earnings multiple of 11.83 versus 18.67 possessed by the S&P 500. The Financial - Investment Bank industry trades at a forward P/E of 14.56X. The financials sector currently has a lower debt-to-equity ratio of 0.28X than the S&P 500’s 0.57X.
Dow Jones Less Impacted by Occasional AI Valuation Worries Due to its lower exposure to technology stocks compared with its other two peers, the Dow Jones has remained relatively resilient during periods of AI-driven valuation concerns, thanks to its diversified mix of established blue-chip companies. Its lower exposure to high-growth AI stocks helps cushion the index from sharp, sentiment-driven swings.
Will the Rally Last? If the Fed remains less hawkish going forward, U.S. interest rates will likely decline, which should support growth sectors like technology. In that case, the Dow Jones is less likely to outperform the S&P 500 and the Nasdaq because the Dow Jones has a stronger value orientation than the other two major indexes. However, if any overvaluation-induced selloff occurs in the AI space, the value-centric Dow Jones should fare better.
Average Returns Tend to Be Lower in Years of Mid-Term ElectionsAccording to data cited by the Stock Trader's Almanac going back to 1896, the Dow Jones has historically generated an average return of about 4% during midterm election years (like this year), compared with roughly 10.2% in pre-election years and about 6% in presidential election years, as quoted on disruptionbanking.com.
Bottom LineOverall, the Dow Jones’ performance could remain moderate in 2026, if not exceptional. Investors can keep a close tab on the SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) ETF.
Key Takeaways Dow ended Q1 with about $14B in liquidity, supporting growth investments and shareholder returns.DOW generated about $1.1B in Q1 operating cash flow and has no major long-term debt due until 2029.DOW trades at a forward P/E below the industry average, while 2026 and 2027 EPS estimates have risen. Dow Inc. (DOW - Free Report) exited the first quarter with solid liquidity of around $14 billion, including cash and cash equivalents of roughly $4.1 billion. It generated solid cash flow from operating activities of roughly $1.1 billion in the first quarter.
DOW’s strong balance sheet and substantial cash flows support capital allocation, enabling it to finance its growth investments in higher-value businesses and regions and drive shareholder value while navigating a challenging macroeconomic environment. It remains focused on growth actions in attractive end markets and executing high-return incremental growth projects in cost-advantaged regions, leveraging strong financial health.
Dow returned $1.5 billion to shareholders through dividends in 2025. Dow has a policy of returning roughly 45% of its operating net income through dividends. It paid $252 million in dividends in the first quarter. It has no substantial long-term debt maturities until 2029.
Looking across the competitive landscape, LyondellBasell Industries N.V. (LYB - Free Report) had $2.64 billion in cash and cash equivalents as of the end of the first quarter. LYB’s total available liquidity was $7.3 billion. LyondellBasell generated $2.6 billion in cash from operating activities over the 12 months (ending March 31, 2026) and achieved 111% cash conversion.
Eastman Chemical Company (EMN - Free Report) ended the first quarter with cash and cash equivalents of $665 million, up from $418 million at the end of the prior-year period. EMN’s cash and cash equivalents rose $99 million sequentially from $566 million at the beginning of the quarter. Eastman Chemical generated around $1 billion in operating cash flow in 2025 and sees similar cash flows in 2026.
The Zacks Rundown for DOWShares of Dow have lost 5.9% in the past year compared with the Zacks Chemicals Diversified industry’s decline of 2.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, DOW is currently trading at a forward 12-month earnings multiple of 11.72, a 13.1% discount to the industry average of 13.49X. It carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DOW’s 2026 and 2027 earnings implies a year-over-year rise of 395.7% and a decline of 31.6%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
Dow Inc. (DOW - Free Report) ended the recent trading session at $27.33, demonstrating a -1.37% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.12%.
Coming into today, shares of the materials science had lost 18.43% in the past month. In that same time, the Basic Materials sector lost 5.59%, while the S&P 500 lost 0.9%.
The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on July 23, 2026. The company is expected to report EPS of $1.28, up 404.76% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $12.01 billion, reflecting a 18.82% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.78 per share and revenue of $43.62 billion. These totals would mark changes of +395.74% and +9.15%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dow Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.78% higher within the past month. Dow Inc. is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Dow Inc. is currently being traded at a Forward P/E ratio of 9.95. This indicates a discount in contrast to its industry's Forward P/E of 15.82.
Meanwhile, DOW's PEG ratio is currently 0.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Chemical - Diversified industry was having an average PEG ratio of 1.25.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DOW in the coming trading sessions, be sure to utilize Zacks.com.
With the cost of living rising, more investors are recognizing the importance of generating income through dividend stocks. After all, those income payments can provide an extra cushion in retirement.
That's why Nike (NKE +2.44%) is receiving increased attention. With a yield of 4% as of this writing, it's paying out more than Coca-Cola (KO +3.51%), a long-term holding for many dividend investors. The beverage maker is a Dividend King, earning that title by increasing its dividend payout for more than 50 consecutive years.
But as you'll see in a minute, there's a reason to look at more than just Nike's yield when making an investment decision.
Image source: Getty Images.
The appeal of an iconic brand When the Air Jordan was launched in 1985, it turned owning a pair of Nike shoes into a status symbol. In recent years, however, the cool factor around Nike has started to disappear.
Consumer tastes have changed, and Nike has been criticized for relying too much on past success rather than innovation. The company also made it more difficult to find and buy its shoes, as it relied on a direct-to-consumer model rather than working with wholesale partners. Inventory has also built up, and Nike has had to rely on price cuts to move excessive merchandise.
The stock price has suffered all along the way. As of this writing, it is down more than 70% over the past five years and has dropped 35% this year alone.
The company is still trying to execute its turnaround plan, but it had a few bright spots in its recent earnings report. When Nike reported its fourth-quarter 2026 earnings, it beat expectations for both revenue and earnings per share. Even though sales slumped in China, it still reported $1.3 billion in sales in the country, beating expectations of $1.2 billion.
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Always counting on Coca-Cola It's not in the most exciting of businesses, but Coca-Cola does offer consistency. Over the past 64 years, it has consecutively increased its dividend payouts. One company that understands the power of that consistency better than anyone is Berkshire Hathaway.
Warren Buffett began buying shares of Coca-Cola in 1988, and Berkshire currently owns a 9.3% stake in the company. With this investment, Berkshire is generating hundreds of millions of dollars every quarter in dividends from Coca-Cola.
While it is better known for its dividend payouts than for stock price appreciation, Coca-Cola has performed well thus far in 2026. That's in part due to success with organic sales, rather than just increasing prices. In its 2026 first-quarter earnings, Coca-Cola reported 13% growth in unit case volume for its Coca-Cola Zero Sugar brand, a 5% increase in water, and an 8% increase in tea.
As of June 30, shares of Coca-Cola are up 16.2% in 2026, beating the 9.5% return of the S&P 500.
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The winner for July and beyond A higher yield makes Nike intriguing, but yield alone doesn't make it an automatic buy, given the volatility its stock price can face. Its turnaround is still underway, as evidenced by its Q4 2026 results. While it had some wins in that quarter, revenue in North America, Nike's largest market, fell short of expectations.
At this point in time, an investment in Nike is centered more on the company reversing its missteps and losses from the past several years, rather than being an income investment. That's because the dividend yield won't matter much if the stock keeps slumping lower. The Nike stock price could offer more upside than Coca-Cola's if the company can execute its turnaround plan, but that also means taking on additional risk as a shareholder, as there's no guarantee the turnaround will work.
In comparison, Coca-Cola is a steadier performer and has proven itself more as a dividend investment, with 64 years of consecutive dividend increases. More aggressive investors may favor Nike, but Coca-Cola offers the reliability that many may be seeking for a more stable income.
The Dow Jones Industrial Average gained 8.9% during the first six months of 2026, making this the best first half of a year it's had since 2021, according to CNBC. Is this a sign that you should buy an exchange-traded fund (ETF) of these blue chip stocks?
The SPDR Dow Jones Industrial Average ETF Trust (DIA +1.05%) lets you invest in "the Dow." But what does it mean to buy the Dow Jones Industrial Average, and how does this ETF compare with other choices?
Let's look at the SPDR Dow Jones Industrial Average ETF Trust and see if it could be a good buy for your portfolio.
Image source: Getty Images.
SPDR Dow Jones Industrial Average ETF Trust (DIA): 30 stocks, 10 years of 13.3% annualized returns The Dow Jones Industrial Average tends to get a lot of news headlines, and for good reason. This benchmark index has been around since 1896, and looking at "the Dow" is a widely recognized way to take the temperature of the U.S. stock market.
But what exactly is the Dow? It is not "the stock market." Instead, it's a price-weighted index of 30 "blue chip" U.S. stocks. These companies are large, steadily profitable, and well regarded for their importance to the U.S. stock market. Companies can be added to or removed from the Dow over time based on their performance.
In the same way that S&P 500 ETFs track the performance of the S&P 500 index benchmark, the SPDR Dow Jones Industrial Average ETF (DIA) holds the same 30 stocks as the Dow. The Dow ETF's top five stock holdings are:
Goldman Sachs (GS +0.14%): 11.6% of the fund Caterpillar (CAT 2.81%): 11.3% UnitedHealth Group (UNH 0.28%): 4.8% Microsoft (MSFT +1.69%): 4.4% Amgen (AMGN +3.58%): 4.1% This SPDR fund offers exposure to a much narrower piece of the market than a total stock market ETF. But it lets you buy the entire Dow Jones Industrial Average for a relatively low expense ratio of 0.16%. The SPDR Dow Jones Industrial Average ETF Trust (DIA) has delivered average annual returns (by net asset value) of about 22.5% in the past year, 10% in the past five years, and 13.3% in the past 10 years.
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Buying an ETF of 30 of the best-known stocks in America might seem like a good bet. The Dow is constantly quoted in the news as a proxy for the overall U.S. stock market. But just because people talk about it on financial TV doesn't mean it's the best buy for your portfolio.
Here's a big reason to be cautious when buying this ETF. The Dow Jones Industrial Average is only 30 stocks. Because of that focus on blue chips, this fund is not as diversified as the S&P 500 index, and it's not full of major tech names like the Nasdaq-100 index. During the past 10 years, this Dow Jones ETF has strongly underperformed both of those benchmarks:
DIA Total Return Level data by YCharts
If you want a broadly diversified portfolio, buying the Dow might put too much of your money into too few stocks. There's no guarantee that any ETF will outperform the market, and there's no guarantee that the Dow Jones Industrial Average is better at picking the best stocks. For many long-term investors, buying S&P 500 ETFs or investing in growth stocks through a Nasdaq-100 ETF might be a better choice than buying the Dow.
Ben Gran has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen, Caterpillar, Goldman Sachs Group, and Microsoft. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
S&P 500 Forecast: Big Tech Weakness Keeps 7,600 Breakout in Focus Mega-Cap Technology Weakness Slows the S&P 500 Rally S&P 500 has recovered strongly from the March 2026 selloff. But the mega-cap technology stocks have been dropping in June, which keeps the index under consolidation below 7,600.
If the technology stocks continue to pull back from their resistance, it may create challenging environment for the S&P 500. Nvidia Corp. (NVDA), Microsoft Corp. (MSFT), Amazon Inc. (AMZN) and Alphabet Inc. (GOOG) have significant shares in the S&P 500. If these stocks remain in a correction mode, the index may consolidate further before the next move to 8,000. Even if the economy remains strong, the poor tech leadership would slow the path forward.
But the downside could be relatively limited as long as the economy keeps improving. The strong transportation stocks, rising overtime hours, and improving temporary employment suggest that the economy is not breaking down. The outlook is cautiously positive for the S&P 500 as strength in the broader market may offset the weakness in mega-cap technology stocks.
S&P 500 Bullish Pattern Points to 8,000 The S&P 500 shows a strong bullish pattern as seen in the daily chart below. The index formed a strong inverted head and shoulders pattern in 2025, which was broken at the 6,000 level. After breaking from the 6,000 level, the index formed an ascending broadening wedge pattern from July 2025 towards the recent highs.
The formation of a V-shaped recovery in March 2026 and a breakout above 7,000 have opened the door for a strong move towards the 8,000 level in the S&P 500.
Now, strong support remains at 7,000 to 7,200, which is considered a strong buy zone for investors. But the index has now formed a triangle pattern in June, which indicates price compression. This triangle pattern indicates that a break above 7,600 will likely trigger strong upside move in the S&P 500 in July 2026.
But a break below 7,300 will likely push the index towards the 7,000 to 7,200 area, which is considered a buy zone for the index.
The short-term price action also shows that the S&P 500 is constructing a strong bullish pattern. On one hand, the index is forming a triangle pattern by consolidating from the June 3 highs towards the recent highs. A break above 7,600 will indicate a strong surge in the index towards 8,000.
On the other hand, if the index drops towards 7,200, this will likely act as a bull flag pattern. This correction will likely trigger another move towards the 8,000 level as a strong rally.
But the RSI remains above the mid-level, which indicates that any correction in the S&P 500 will likely strengthen the next move in the S&P 500.
Key Takeaways The Dow notched its 21st record closing high of 2026 as investors favored defensive assets.GS offers expected 17.3% current-year earnings growth, with estimates rising over the past 60 days.CAT and KO are backed by improving earnings estimates and solid current-year growth expectations. Wall Street has turned volatile over the past two weeks, led by a massive tech selloff. However, the Dow has had a solid run this year, with the blue-chip index hitting a new all-time closing high on Thursday.
After a stellar first half of 2026, the Dow started the second half on a high, thanks to investors who have lately been taking refuge in defensive assets amid an AI-related tech selloff.
Given the positive sentiment, investors should bet on these three fundamentally strong blue-chip stocks, namely The Goldman Sachs Group, Inc. (GS - Free Report) , Caterpillar Inc. (CAT - Free Report) and The Coca-Cola Company (KO - Free Report) . These companies are well-positioned to benefit from the market’s overall upward trend, offering potential for solid returns.
Dow on a Rally
The Dow gained 1.1%, or 594.83 points, to close at a record high of 52,900.07 on Thursday. The milestone was achieved on the second trading day of the second half of the year. This is also the 21st record closing high for the blue-chip index this year.
While the Nasdaq has been weighed down lately by a massive selloff in tech stocks, the Dow has gained as investors are rotating out of AI-related stocks and taking refuge in defensive assets. Concerns over the sustainability of AI-related stocks have been dampening investors’ confidence.
The blue-chip index suffered in the early months of the year after the U.S-Iran war broke out in late February. However, easing geopolitical tensions over the past month led to a dip in global oil prices, helping the index.
Also, robust corporate earnings by industry bellwethers in the first two quarters fueled the Dow rally in the first half of the year.
The Dow gained 8.9% in the first half of 2026, to record its best first half since 2021. The index has gained nearly 10.1% year to date after rising nearly 13% in 2025.
With the Iran war likely to come to an end soon, inflation is expected to ease. Till some time back, the Federal Reserve was contemplating a rate hike this year as inflation surged on higher oil prices over the past few months. However, rate hike worries eased earlier this week, with the Fed indicating that inflation may decline in the near term.
3 Dow Stocks With UpsideThe Goldman Sachs GroupThe Goldman Sachs Group, Inc. is a leading global financial holding company providing IB, securities, investment management and consumer banking services to a diversified client base. GS is headquartered in New York, with offices in major financial centers globally.
The Goldman Sachs Group’s expected earnings growth rate for the current year is 17.3%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. Currently, GS has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CaterpillarCaterpillar Inc. is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors — infrastructure, construction, mining, oil & gas and transportation, CAT is considered a bellwether of the global economy. Caterpillar has more than 4 million products with an extensive dealer network of 165 dealers spanning 191 countries.
Caterpillar’s expected earnings growth for the current year is 29.4%. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the past 60 days. CAT currently carries a Zacks Rank #1.
The Coca-Cola CompanyThe Coca-Cola Company’s strong brand equity, marketing, research and innovation help it to garner a market share of more than 40% in the non-alcoholic beverage industry. KO is putting its best foot forward to evolve its business model to become a total beverage company with something for everyone to drink.
The Coca-Cola Company has an expected earnings growth rate of 8.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. The Coca-Cola Company currently has a Zacks Rank #2.
Verizon Communications stock is showing positive momentum. Where are VZ shares going? What Is Driving Verizon’s Recent Stock Movement?Verizon recently began trading outside the Dow Jones Industrial Average after being replaced by Alphabet, a shift that can trigger mechanical selling from index-tracking funds. Separately, Verizon agreed to combine its international wireline connectivity and managed network services business with BT Group Plc in a 50-50 joint venture.
Verizon said it will contribute its international business and make a $625 million cash payment (distributed to BT), while also flagging charges that include a second-quarter loss of $700 million to $800 million tied to held-for-sale accounting.
The company also expects severance charges of $350 million to $450 million and asset rationalization charges of $200 million to $300 million, mainly tied to exiting certain real estate and network assets.
Verizon Stock: Key Technical Levels To WatchFrom a longer-term trend perspective, Verizon is still trading below its key moving averages, sitting 7.6% under the 20-day SMA, 9.6% under the 50-day SMA, 11.9% under the 100-day SMA, and 5.1% under the 200-day SMA. That alignment keeps the burden of proof on bulls until price can reclaim at least the 200-day area and then start working back toward the 50-day/100-day zone.
Momentum also leans soft: MACD is below its signal line and the histogram is negative, which points to upside pressure fading versus the prior upswing. In plain terms, when MACD is below its signal line, rallies tend to struggle to follow through unless momentum flips back in buyers’ favor.
The moving-average structure is mixed: the 20-day SMA is below the 50-day SMA (bearish near-term), but the 50-day SMA remains above the 200-day SMA after the golden cross in February. Traders will also note the recent swing low in April and swing high in May as the most relevant reference points for whether the stock is building a base or just chopping inside a broader downtrend.
Key Resistance: $48.50 — a nearby ceiling where rebounds can stall, sitting above the 50-day SMA ($46.73) and 100-day SMA ($47.94) Key Support: $39.00 — a nearby floor where buyers previously stepped in, close enough to matter if the stock retests the lower end of its recent range How Verizon Generates Revenue and Its Market PositionWireless services drive about 75% of Verizon’s total service revenue and nearly all of its operating income, so the market typically treats the stock as a read-through on U.S. wireless pricing, churn, and network investment cycles. The company serves about 94 million postpaid and 20 million prepaid phone customers on its nationwide network, making it the largest U.S. wireless carrier.
On the wireline side, Verizon’s local networks in the Northeast reach about 30 million homes and businesses, including about 20 million served by the Fios fiber-optic network. It also closed its acquisition of Frontier Communications in January, adding networks that reach another 15 million locations, including 9 million with fiber, supporting a base of about 11 million broadband customers.
That mix helps explain why the BT joint venture headlines matter: reshaping the international wireline connectivity and managed network services footprint can change the earnings "shape" near term (via charges) while potentially simplifying the longer-term story around the core U.S. wireless and fiber buildout.
Verizon Earnings Preview: What Analysts Expect for July 2026Looking further out, the next major catalyst for the stock arrives with the July 24, 2026 (confirmed) earnings report.
EPS Estimate: $1.28 (Up from $1.22 YoY) Revenue Estimate: $35.34 Billion (Up from $34.50 Billion YoY) Valuation: P/E of 10.2x (Indicates value opportunity relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $50.68 (high: $58.00; low: $44.00) across 18 analysts. Recent analyst moves include:
Freedom Broker: Initiated with Hold (Target $53.00) (June 12) JP Morgan: Neutral (Raises Target to $52.00) (April 30) Morgan Stanley: Equal-Weight (Raises Target to $50.00) (April 28) What Would $1,000 Invested in Verizon Be Worth Today?$1,000 invested in Verizon Communications on July 2, 2021 would have been worth $745 on July 1, 2026 — a -25.5% return over the period, excluding dividends. The stake swung between $544 and more than $1,000, ending well below its 2021 peak.
After starting on July 2, 2021, the position hit an early high on July 15, 2021 before sliding to its period low on October 13, 2023. It recovered from that trough but still finished the five-year stretch below where it began, with a maximum drawdown of -45.8%.
On an annualized basis, Verizon Communications returned -5.7% over the holding period, lagging the S&P 500’s 11.6% annualized gain and the Nasdaq 100’s 15.3% annualized gain. Among peers listed, AT&T Inc. was the closest comparator, with an annualized return of -6.8%.
Verizon Communications has a market capitalization of about $175.9 billion. The stock carries a P/E of 10.2 and a dividend yield of 6.74%.
Verizon’s Benzinga Edge Rankings: Strengths and WeaknessesBelow is the Benzinga Edge scorecard for Verizon Communications, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Verizon Communications’s Benzinga Edge signal reveals a neutral-to-weak profile with the biggest drag coming from Momentum. For longer-term investors, that often means waiting for a cleaner trend reversal (like reclaiming the 200-day and holding it) before treating rebounds as more than tactical bounces.
Verizon Stock Price Action: Thursday Premarket UpdateVZ Stock Price Activity: Verizon Communications shares were up 0.45% at $42.18 during premarket trading on Thursday, according to Benzinga Pro data.
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Key Takeaways Dow gained 8.9% in first-half 2026, its strongest first-half performance since 2021.The blue-chip index trades above its 50-day and 200-day moving averages, signaling technical strength.CSCO, CAT, V, KO and AMZN are highlighted as blue-chip picks for the second half of 2026. The Dow has concluded the best first-half performance since the first-half of 2021. Wall Street’s blue-chip index gained 8.9% in first-half 2026. Dow’s momentum is likely to continue in the near term. Technically, at its current level of 52,305.24, the Dow is well above its 50-day and 200-day moving averages of 50,480.62 and 48,407.65, respectively.
Historically, it has been noticed in the technical analysis space that whenever the 50-day moving average line surges ahead of the 200-day moving average line, a long-term uptrend for the asset (in this case, the Dow Index) becomes a strong possibility.
At this stage, it will be prudent to invest in blue-chip stocks with a favorable Zacks Rank. Five such stocks are: Cisco Systems Inc. (CSCO - Free Report) , Caterpillar Inc. (CAT - Free Report) , Visa Inc. (V - Free Report) , The Coca-Cola Co. (KO - Free Report) and Amazon.com Inc. (AMZN - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Cisco Systems Inc.Zacks Rank #1 Cisco Systems has been benefiting from strong product orders from hyperscalers, enterprises, service providers, the public sector and cloud customers. In the last reported quarter, CSCO generated record-high revenues primarily attributable to its networking portfolio, powered by Silicon One, AI-native security solutions and operating systems.
CSCO expects total artificial intelligence (AI) infrastructure orders to reach $9 billion in fiscal 2026, an increase of 4.5X from fiscal 2025. Overall product orders grew by a sizable 35% year over year in the third quarter. Of this, data center switching orders grew 40% from the year-ago period supported by massive AI-powered data center buildout.
Cisco has decided to retrench 4,000 manpower as part of a sweeping restructuring effort. Management said that this restructuring has been guided to give more emphasis to areas like AI networking infrastructure, network security, silicon and optics.
Cisco Systems has an expected revenue and earnings growth rate of 7.6% and 10.6%, respectively, for the next year (ending July 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.9% over the last 30 days.
Caterpillar Inc.Zacks Rank #1 Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment.
CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.
Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% in the last seven days.
Visa Inc.Zacks Rank #2 Visa’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity, and increasing transaction counts.
V’s fiscal second-quarter results showed broad momentum across consumer payments, commercial and money movement solutions, and value-added services. Management guides to low-teens revenue growth for fiscal 2026.
Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. Visa has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.
Visa has an expected revenue and earnings growth rate of 13.4% and 14.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 60 days.
The Coca-Cola Co.Zacks Rank #2 Coca-Cola is benefiting from the strength of its portfolio breadth, consistent share gains and improving margins driven by pricing and productivity efforts. Innovation, marketing and digital initiatives are enhancing consumer engagement and execution, while diversified categories reduce risk.
KO projects steady organic revenue and EPS growth, backed by a durable global distribution moat. Our model predicts KO’s organic revenue growth of 4.8% and comparable EPS to grow 8.8% for 2026. KO’s robust cash generation supports reinvestments and sustainable shareholder returns, including continued dividend growth.
Coca-Cola has an expected revenue and earnings growth rate of 3% and 8.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 60 days.
Amazon.com Inc.Zacks Rank #2 Amazon.com’s international expansion and diversification across e-commerce, AWS cloud services, advertising and streaming create multiple revenue streams while reducing concentration risk.
AI integration throughout AMZN’s operations represents a transformative catalyst for efficiency gains and new revenue opportunities across the entire business ecosystem. AWS provides cutting-edge AI and machine learning services to enterprise customers, positioning Amazon as a leader in the rapidly expanding generative AI market.
AMZN’s chips business exceeded a $20 billion annual revenue run rate, with Graviton, Trainium and Nitro growing triple-digit percentages year over year, and AWS secured commitments from OpenAI and Anthropic for Trainium capacity. AMZN deploys AI extensively in its e-commerce platform for personalized recommendations, inventory management, and dynamic pricing optimization that enhances profitability.
Logistics operations benefit from AI-powered routing algorithms and warehouse automation that reduce delivery times and operational costs significantly. AMZN's substantial investments in AI infrastructure and talent development create formidable competitive barriers while unlocking innovative capabilities that drive customer engagement, operational excellence, and margin improvement across all business segments.
Amazon.com has an expected revenue and earnings growth rate of 15.3% and 23.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% over the last 60 days.
Key Takeaways Dow is gaining from cost cuts and high-return growth projects despite macroeconomic challenges.DOW is taking actions to cut costs and drive productivity, targeting $1.1B in 2026 self-help benefits.DOW faces weak demand, higher feedstock costs and maintenance headwinds that may pressure near-term results. Dow Inc.’s (DOW - Free Report) shares have gained 15.5% so far this year. It has been gaining from its cost-reduction and productivity improvement efforts, strategic expansion in high-growth markets and feedstock advantages in the Americas, even as it navigates a challenging macroeconomic environment.
Dow has performed in line with the Zacks Chemicals Diversified industry’s 15.4% rise while topping the S&P 500’s increase of 9.7% year to date. Among its peers, LyondellBasell Industries N.V. (LYB - Free Report) , Eastman Chemical Company (EMN - Free Report) and BASF SE (BASFY - Free Report) have gained 21.4%, 5.1% and 2.3%, respectively, over the same period.
DOW’s YTD Price Performance Image Source: Zacks Investment Research
Technical indicators show that DOW has been trading below the 50-day simple moving average (SMA) since May 18, 2026. The stock slipped below the 200-day SMA on June 24, 2026. Following a golden crossover on Feb. 5, 2026, the 50-day SMA continues to read higher than the 200-day SMA, indicating a bullish trend.
Dow’s Shares Trade Below 50-Day SMA Image Source: Zacks Investment Research
Let’s take a look at DOW’s fundamentals to analyze the stock better.
High-Return Growth Projects & Self-Help Actions Aid DowDOW benefits from its differentiated portfolio and advantaged feedstock positions in the Americas. It remains focused on investing in attractive areas. Its broad portfolio, significant low-cost feedstock positions, global footprint and market reach place it in an advantageous position against competitors. While Dow faces headwinds from heightened macroeconomic and geopolitical uncertainties, it remains focused on growth actions in attractive end markets and executing high-return incremental growth projects in cost-advantaged regions.
DOW recently entered into a landmark agreement with Xylem to develop and operate advanced water systems at the Fort Saskatchewan, Alberta, Canada, manufacturing complex. The initiative further expands collaboration between these companies, supporting the advancement of DOW's Path2Zero initiative. The company also announced a series of targeted investments totaling approximately $100 million through 2027 to strengthen its global specialty silicones manufacturing and innovation. The initiative aims to support rising demand in fast-growing sectors such as mobility, electronics, and healthcare while enhancing supply chain resilience globally.
Dow is taking action to cut costs by $1 billion to drive margins. It expects to achieve the majority of the cost savings through reductions in direct and labor costs. Dow realized more than $400 million of benefits from these actions in 2025, with the remaining benefits expected by 2026.
DOW has launched the “Transform to Outperform” initiative to improve productivity, reduce complexity, streamline its end-to-end processes and enable improved returns. The plan targets at least $2 billion near-term operating EBITDA improvement, with two-thirds of the benefits expected to be realized from productivity improvements. The company expects EBITDA benefits of roughly $500 million from this program in 2026. It expects to deliver roughly $1.1 billion in benefits from self-help actions this year.
Dow, on its first-quarter call, stated that it is already witnessing strong positive momentum from its recently implemented pricing actions across all businesses and regions, along with supportive improvements in operating rates. The company added that it is leveraging its purpose-built asset base, established supply-chain networks and strong operational reliability to continue prioritizing customers while navigating challenges related to the Middle East conflict.
DOW’s Solid Financial Health Supports Capital AllocationDOW has a strong balance sheet and generates substantial cash flows, which enable it to finance its growth investments in higher-value businesses and regions, and drive shareholder value. It ended the first quarter with solid liquidity of around $14 billion, including cash and cash equivalents of roughly $4.1 billion. It generated solid cash flow from operating activities of roughly $1.1 billion in the first quarter.
DOW returned $1.5 billion to shareholders through dividends in 2025. Dow has a policy of returning roughly 45% of its operating net income through dividends. It paid $252 million in dividends in the first quarter. It has no substantial long-term debt maturities until 2029.
DOW offers a healthy dividend yield of 5.1% at the current stock price compared with 5.2% for LyondellBasell, 3.5% for BASF and 5% for Eastman Chemical.
Soft Demand Conditions and Cost Pressures Ail DOWDow is exposed to headwinds from a tepid demand environment. Lower consumer spending amid inflationary pressures is affecting demand in Europe. Construction and manufacturing activities remain soft in the region. Demand in Asia has been affected by a weaker demand recovery in China. The property sector in China remains sluggish, with declining new home prices.
Inflationary pressures are impacting consumer durables and building and construction demand. Demand in infrastructure, including residential construction, also remains weak. Dow is also seeing softness in automotive in Europe due to weak demand. Higher costs are also expected to impact the U.S. automotive market in 2026. Weak conditions across these markets are likely to impact volumes in second-quarter 2026.
The company faces headwinds from higher feedstock costs in Asia and Europe. The Middle East conflict and the blockade of the Strait of Hormuz have led to significant supply disruptions and feedstock cost pressure in these regions. Elevated feedstock and energy costs are likely to impact margins in the second quarter.
Dow also faces headwinds from turnaround costs and operational issues in the second quarter. It sees a $60 million headwind from higher maintenance activities at one of its crackers in the U.S. Gulf Coast, impacting the Packaging & Specialty Plastics unit. Also, another $50 million headwind is expected in the Industrial Intermediates & Infrastructure division from higher planned maintenance activity. Higher maintenance activity at one of its monomers facilities is also expected to pose a $35 million headwind in Performance Materials & Coatings.
Positive Analyst Sentiment for DOW StockThe Zacks Consensus Estimate for DOW’s 2026 earnings has been going up over the past 60 days. The consensus estimate for second-quarter 2026 earnings has also been revised upward over the same time frame.
The Zacks Consensus Estimate for 2026 earnings is currently pegged at $3, suggesting a year-over-year rise of 419.2%. Earnings are expected to increase roughly 411.9% in the second quarter.
Image Source: Zacks Investment Research
DOW Trades at a DiscountDOW is currently trading at a forward price-to-sales ratio of 0.44, below the industry. DOW is also trading at a discount to LyondellBasell, BASF and Eastman Chemical.
DOW’s P/S F12M Vs. Industry, LYB, BASFY and EMN Image Source: Zacks Investment Research
Final Thoughts: Hold Onto DOW SharesDow benefits from its differentiated portfolio and advantaged low-cost feedstock position in the Americas, which strengthens its competitive edge. Its disciplined and balanced capital allocation strategy supports long-term growth while maintaining a strong focus on cost control and operational efficiency. Backed by a solid balance sheet and healthy cash flow generation, Dow is well-positioned to fund growth investments and enhance shareholder value. However, DOW is exposed to weak demand in a challenging environment as well as cost headwinds, which may weigh on its near-term performance. Investors who already hold this Zacks Rank #3 (Hold) stock may be best served by maintaining their positions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Dow Inc. (DOW - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Dow Inc. is a member of our Basic Materials group, which includes 275 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Dow Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for DOW's full-year earnings has moved 37652.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that DOW has returned about 17% since the start of the calendar year. At the same time, Basic Materials stocks have gained an average of 8.1%. This shows that Dow Inc. is outperforming its peers so far this year.
Green Plains Renewable Energy (GPRE - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 56.9%.
Over the past three months, Green Plains Renewable Energy's consensus EPS estimate for the current year has increased 359.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Dow Inc. belongs to the Chemical - Diversified industry, a group that includes 31 individual companies and currently sits at #106 in the Zacks Industry Rank. On average, this group has gained an average of 15.4% so far this year, meaning that DOW is performing better in terms of year-to-date returns.
Green Plains Renewable Energy, however, belongs to the Chemical - Specialty industry. Currently, this 46-stock industry is ranked #93. The industry has moved +15% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Dow Inc. and Green Plains Renewable Energy as they could maintain their solid performance.
World's only integrated resort operator named to both World and Asia Pacific indices
"People, Community, and Planet" ESG pillars receives international acclaim
, /PRNewswire/ -- In recognition of its outstanding performance in Environmental, Social, and Governance (ESG) practices, Sands China Ltd. has been named in the latest Dow Jones Best-in-Class (DJBIC) Indices, including the Dow Jones Best-in-Class World Index for the fifth consecutive year and the Dow Jones Best-in-Class Asia Pacific Index for the sixth consecutive year, making it the world's only integrated resort operator to be concurrently listed in both indices – a strong validation of its exceptional performance and effectiveness in the company's three core ESG pillars of "People, Community, and Planet."
In recognition of its outstanding performance in Environmental, Social, and Governance (ESG) practices, Sands China Ltd. has been named in the latest Dow Jones Best-in-Class (DJBIC) Indices, including the Dow Jones Best-in-Class World Index for the fifth consecutive year and the Dow Jones Best-in-Class Asia Pacific Index for the sixth consecutive year, making it the world’s only integrated resort operator to be concurrently listed in both indices. In this year's assessment, 16 integrated resort operators globally were invited to participate. Ultimately, only Sands China and its parent company, Las Vegas Sands Corp., were selected for the World Index. Sands China is also one of only two integrated resort operators to secure a spot on the Asia Pacific Index. Meanwhile, Las Vegas Sands Corp. has been named to the World and North America indices for the seventh consecutive year, further demonstrating that the Group's integrated ESG management approach continues to receive high international praise.
Grant Chum, chief executive officer and executive director of Sands China Ltd., said: "We are deeply honoured to once again be listed on both the Dow Jones Best-in-Class World and Asia Pacific indices, and to remain the world's only integrated resort operator to achieve dual listing on these prestigious benchmarks. This accolade is an encouraging, high-level international endorsement of our outstanding ESG performance. Sands China has always viewed sustainable development as a fundamental cornerstone of our business and remains committed to fulfilling our corporate social responsibility. For over two decades, we have embedded ESG principles into our daily operations – driving local talent development, fostering community inclusion, and supporting SMEs, generating broader and lasting social benefits for Macao. Moving forward, we will continue to uphold our sustainability philosophy and practices, working closely with the Macao SAR government and all sectors of society to co-create a greener, better, and more diversified future for Macao."
Sands China has consistently implemented a range of sustainability initiatives under its "People, Community, and Planet" pillars. Under the People pillar, the company's Sands China Academy had provided 1.8 million cumulative training hours to local employees in 2025. Beginning with Sands® Macao's opening in 2004, the total training provided to team members had exceeded 22.6 million hours as of the end of 2025.
Under the Community pillar, the company established the Sands Cares Ambassador Programme in 2009, making it the first integrated resort operator in Macao to launch a volunteer team. As of the end of 2025, the programme had contributed over 362,000 community service hours since its launch. Concurrently, Sands China actively supports the Macao SAR government's policy direction of promoting community economy and district revitalisation, consistently deploying corporate resources to inject vitality into the sustainable development of historical areas. Guided by the principle of "integrating the old with the new, bridging the past into the future," Sands China extended the Community Revitalization Programme for Rua das Estalagens to further encourage and support Macao SMEs to launch and optimise their businesses on the street, working together to revitalise the economic vitality of the neighbourhood.
Under the Planet pillar, Sands China continues to advance its carbon reduction and environmental protection measures. Compared to a 2018 baseline year, the company has successfully reduced its Scope 1 and Scope 2 greenhouse gas emissions by 61 percent. This series of highly efficient green initiatives also earned Sands China its recent renewal of the ISO 14001 Environmental Management System certification. The company further optimises resource utilisation and enhances operational efficiency through concrete actions that include recycling 100 percent of playing cards, having switched all complimentary bottled water to eco-friendly materials, and the continued expansion of green procurement strategies – such as increasing the proportion of cage-free eggs procured.
Launched in 1999, the Dow Jones Best-in-Class Indices represent the world's first and most credible benchmarks for corporate sustainability. Conducted annually by S&P Global, the indices comprise an in-depth review of more than 12,000 companies worldwide, rigorously and comprehensively assessing ESG performance across industries. The results are a core indicator for global sustainability investors and an internationally recognised mark of excellence in long-term business success and governance standards.
About Sands China Ltd.
Sands China Ltd. (Sands China or the Company) is incorporated in the Cayman Islands with limited liability and is listed on The Stock Exchange of Hong Kong Limited (HKEx: 1928). Sands China is the largest operator of integrated resorts in Macao. The Company's integrated resorts on the Cotai Strip comprise The Venetian® Macao, The Plaza® Macao, The Parisian® Macao and The Londoner® Macao. The Company also owns and operates Sands® Macao on the Macao peninsula. The Company's portfolio features a diversified mix of leisure and business attractions and transportation operations, including large meeting and convention facilities; a wide range of restaurants; shopping malls; world-class entertainment at The Venetian Arena, The Londoner Arena, The Venetian Theatre, The Parisian Theatre, The Londoner Theatre and Sands Theatre; and a high-speed Cotai Water Jet ferry service between Hong Kong and Macao. The Company's Cotai Strip portfolio has the goal of contributing to Macao's transformation into a world centre of tourism and leisure. Sands China is a subsidiary of global resort developer Las Vegas Sands Corp. (NYSE: LVS).
For more information, please visit www.sandschina.com.
Media contacts:
Corporate Communications, Sands China Ltd.
Mabel Wu
Tel: +853 8118 2268
Email: [email protected]
Verizon Communications (VZ 3.92%), a wireless carrier and enterprise connectivity provider, closed at $42.34, down 3.99%. On Tuesday, shares fell after the Dow Jones Industrial Average removal and restructuring-charge headlines, while investors are watching profitability and the BT joint venture.
How the markets moved todayS&P 500 (^GSPC +0.79%) rose 0.75% to 7,496, while the Nasdaq Composite (^IXIC +1.52%) gained 1.52% to 26,214. Among wireless telecommunications services and diversified communications technology peers, AT&T (T 5.13%) fell 5.18% to $20.69 and T-Mobile US (TMUS 3.64%) declined 3.63% to $167.65 as telecom shares absorbed Verizon's removal from the Dow and related profit worries.
What this means for investorsVerizon’s decline followed several company-specific developments. Its removal from the Dow Jones Industrial Average created sentiment and index-related pressure, while the BT joint venture resulted in near-term charges for Verizon’s international enterprise business. Although the joint venture may simplify operations over time, the immediate focus is on the potential impact of these charges on near-term profitability.
The next key event is Verizon’s July 24 earnings report. Investors will focus on guidance, wireless customer trends, free cash flow, and whether recent plan changes support retention without reducing margins. The main question is whether management can demonstrate that restructuring and pricing changes are strengthening Verizon’s cash flow in a competitive market beyond the impact of the Dow removal.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
