The Dow Jones index has had a difficult start of the year as concerns about the Federal Reserve tightening and earnings remain. On Tuesday, the index crashed by over 300 points in the futures market as bond yields rose. It has dropped by over 2.8% from its highest level this year. So, here are the top 3 Dow Jones to buy in 2022.
Salesforce
Salesforce (NYSE: CRM) is a leading software-as-a-service company valued at over $226 billion. The Salesforce stock price has crashed by over 25% from its highest level in 2021. This year alone, it has dropped by 9%, becoming the worst performer in the Dow Jones after Nike and Home Depot.
The sell-off of Salesforce is mostly because of worries of high-interest rates and the fact that most software stocks have declined.
Still, the company has a good market share in its industry and has consistent cash flows. On the daily chart, it has formed an island reversal pattern, meaning that the shares will likely rebound this year.
Microsoft
Microsoft (NASDAQ: MSFT) is the second biggest company in the world in terms of market capitalization. It operates in tens of sectors. For example, it is the biggest maker of PC operating system in the world. It is also a leader in corporate communications through its Skype and Microsoft Teams products.
Microsoft is also a competitor to Salesforce in the CRM industry. Also, it is the second-biggest cloud computing firm after Amazon.
The Microsoft stock price has dropped by about 7% this year, making it the fourth-biggest Dow Jones stock. Still, the firm’s fundamentals are strong, meaning that it could also rebound.
