The Dow continued to gain over the first week of the New Year as stocks returned to their winning ways. After remaining closed on Monday for a holiday, the index increased on Tuesday, the first trading day of 2017 as investors strived to make up for losses suffered during the last few sessions of profit booking.

The index gained on Wednesday following encouraging auto sales data and release of Fed minutes. The index decreased on Thursday after major retailers registered strong declines.

Last Week’s Performance

The Dow declined 0.3% last Friday after investors indulged in profit taking during the final trading session of 2016. Additionally, shares of Apple Inc. (AAPL Quick QuoteAAPL - Free Report) decreased 0.8% following reports that the company is reducing production of latest iPhone line by nearly 10% during the ongoing quarter.

The index declined by 0.9%, last week. Light trading and profit booking by investors weighed on stock markets. Moreover, a rise in crude inventories and decline in pending home sales also had a negative impact on investor sentiment.

The Dow advanced 3.3% during December backed by a Trump-led rally. Expectations from Trump’s economic policies along with Fed’s decision to raise rates in December continued to improve markets.

Over 2016, the index climbed 13.4%. Markets survived early blues from slowing growth in China’s economy as well as the “Brexit” which occurred mid of 2016. Some of the key factors that contributed to these strong yearly gains for major benchmarks are Trump-induced rally, Fed’s rate hike, improved domestic economy and an oil price rally.

The Dow This Week

The index increased 0.6% on Tuesday, the first trading day of 2017 as investors strived to make up for losses suffered during the last few sessions of profit booking. Additionally, encouraging manufacturing and construction spending data had a positive impact on investor sentiment. However, some of Tuesday’s gains were pared by late decline in oil prices, which came on the back of crude production worries. Markets remained closed on Monday.

The index gained 0.3% on Wednesday following encouraging auto sales data and release of Fed minutes. Better-than-expected auto sales data had a positive impact on auto stocks, which in turn boosted the consumer discretionary sector. Moreover, minutes from Fed’s Dec. 13-14 meeting indicated that policymakers are in favor of a faster pace of rate hikes this year, which in turn boosted investor sentiment.

The index decreased 0.2% on Thursday after major retailers registered strong declines. Moreover, sector like financials which had benefitted from the back of Trump-led rally took a beating yesterday following uncertainty over some of the new administration’s probable economic policies. Shares of Macy's, Inc. (M Quick QuoteM - Free Report) slumped 13.9% after its holiday sales results came in below expectations. Along with Macy's, Kohl's Corporation’s (KSS Quick QuoteKSS - Free Report) shares plunged 19% after the company stated that its comparable sales fell 2.1% year-on-year during the November-December period.

Components Moving the Index

The Boeing Company (BA Quick QuoteBA - Free Report) received an order for the 737 MAX 8 airplanes from GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric (GE Quick QuoteGE - Free Report) . The stock has a Zacks Rank #3 (Hold).

The value of 75 737 MAX 8 airplanes at current list prices is nearly $8.25 billion. However, it goes without saying that the General Electric unit will enjoy a substantial discount on this amount.

The new jets are intended to help GECAS meet customer demand with innovative technology, fuel efficiency and high reliability. (Read: Boeing to Supply 75 737 MAX 8 Jets to GE Capital Aviation)

The Coca-Cola Company (KO Quick QuoteKO - Free Report) and the American Beverage Association trade group are facing a lawsuit from non-profit Praxis Project for misleading consumers regarding the health risks associated with its soft drinks. Shares of Coca-Cola closed the trading session on Jan 4 at $41.65, down 0.4% from the previous day.

Zacks Rank #4 (Sell) rated Coca-Cola has been accused of understating the ill-effects associated with sugary drinks in its advertisements. Praxis also accused both the defendants for deceiving the public into believing that lack of exercise is the only cause for obesity.

However, Coca-Cola deems the lawsuit as "legally and factually meritless” and claims to have taken the health of their consumers very seriously. American Beverage Association found the accusation "unfounded." (Read: Coca-Cola Sued for Misleading Consumers About Health Risks)

The Walt Disney Company’s (DIS Quick QuoteDIS - Free Report) sports channel ESPN, which has been losing subscribers over the past couple of years. Further, ESPN witnessed lower viewership for highly anticipated Monday Night Football in 2016.

Per Nielsen data, the recent Monday night’s match between Dallas Cowboys and Detroit Lions generated an audience of 18.6 million. This was not only the best performance of ESPN for Monday Night Football viewership since 2014 but also helped it to increase its average for 17 games this season to 11.4 million viewers, which is marginally ahead of the 2007 season wherein it attracted 11.2 million viewers.

However, the average viewership for 2016 marked the second-worst Monday Night Football (MNF) season since the 2006 season and third successive year of loss in viewers. Per Nielsen data, MNF viewership has declined 12% from the previous season. The stock has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DuPont’s (DD Quick QuoteDD - Free Report) advanced seed and genetics business, DuPont Pioneer, has signed a definitive agreement with Origin Agritech Ltd. Origin is an agricultural biotechnology trait and seed provider. Under the deal terms, Origin will gain access to non-GM corn seed products from DuPont Pioneer.

Origin expects to sell Commercial Seed Products in the U.S. market by the spring of 2017. Financial details of the deal have not yet been disclosed. In Apr 2016, Zacks Rank #3 rated DuPont and Origin had agreed to develop new seed technologies in China for the Chinese farmers together.

The latest agreement supports Origin’s progress in launching its North America growth platform, Pillar III, which will be focused on serving non-GM/Organic markets. Shares of DuPont rose roughly 0.3% to close at $73.61 on Jan 3. (Read: DuPont's (DD Quick QuoteDD - Free Report) Unit Inks Agreement with Origin Agritech)

ExxonMobil (XOM Quick QuoteXOM - Free Report) and President-elect Donald Trump’s pick for secretary of state, Rex Tillerson, have agreed to cut all ties and comply with conflict of interest requirements as the former chairman and CEO awaits confirmation.

The retirement deal was reached with Exxon’s board of directors, and is worth about $180 million. If Tillerson is confirmed as secretary of state, the value of over 2 million deferred XOM shares that he would have received over the next decade would be placed in an independently managed trust account, said Exxon in a statement.

Tillerson would also surrender “entitlement” to over $4.1 million in cash bonuses, scheduled to pay out over the course of the next three years. The former CEO has also committed to the State Department, separate to the deal with Exxon, to sell more than 600,000 shares in Zacks Rank #3 rated ExxonMobil he currently owns if he is confirmed for the role, and to not work in the oil and gas industry for 10 years.

A confirmation hearing is tentatively scheduled for next week, and Tillerson’s extensive business ties to world leaders, especially Russian President Vladimir Putin, are expected to be a focus point. (Read: ExxonMobil, Rex Tillerson Reach Deal to Cut Ties)

Intel Corporation (INTC Quick QuoteINTC - Free Report) recently announced that it is acquiring 15% stake in German digital mapping company HERE. Although financial terms were not revealed, the transaction is expected to complete in the first quarter of 2017. Zacks Rank #3 rated Intel shares climbed 0.91% to close at $36.60 on Jan 3, 2017.

HERE is a well-known name in the high-precision digital mapping and location based services for automotive and Internet of Things (IoT) market. Currently owned by a consortium of auto firms that include BMW, Audi and Daimler, who bought it from Nokia (NOK) in mid-2015, HERE is a close competitor of Google Maps. (Read: Intel to Expand in Automated Car Space with Stake in HERE)

Performance of the Top 10 Dow Companies

The table given below shows the price movements of the 10 largest components of the Dow, which is a price weighted index, over the last five days and during the last six months. Over the last five trading days, the Dow has gained 0.2%.

Next Week’s Outlook

Markets have started the New Year on a winning note. Additionally, most economic data released recently has been positive in nature. With the new government likely to adopt industry friendly policies, such gains are likely to continue.

Meanwhile, the Fed is preparing to raise rates and the data dependent central bank is likely to look at fresh economic reports for clues on the state of the economy. This is why economic data to be released in the weeks ahead is likely to have a significant impact on market proceedings in the days ahead.

Zacks' Top 10 Stocks for 2017

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