Bullish market sentiment drove the widely watched benchmark index, Dow Jones Industrial Average (DJIA), to a record high last month. And given the favorable macroeconomic backdrop, the DJIA is expected to remain near its record high in the coming months. So, we think DJIA constituents Walmart (NYSE:WMT) and McDonald's (MCD) are attractive bets now. Let’s discuss.Equity indices are currently hovering near their all-time highs owing to the U.S.’ robust vaccination drive and fast-paced macroeconomic recovery. The second oldest U.S. benchmark index, the Dow Jones industrial Average (DJIA), hit its 35,091.56 all-time high on May 10, 2021. DJIA has gained 33.9% over the past year and 12% year-to-date. And given the current economic recovery, the widely watched benchmark index is expected to remain near its record high in the near term.
The benchmark indexes’ latest surge can be attributed primarily to President Biden’s declaration of the infrastructure deal with a bipartisan group of senators on June 24. Also, the Fed’s ultra-loose monetary policy should continue to buoy stock markets in the near term.
Given this backdrop, we think two popular Dow Jones stocks, Walmart Inc. (WMT) and McDonald's Corporation (NYSE:MCD) should be value additions to one’s portfolio.