By Doug Busch

The Dow Jones Industrial Average differs from its benchmark peers in a few meaningful ways.

For one, the Dow is a price-weighted index unlike the market-cap-weighted S&P 500 and Nasdaq, It has also evolved significantly from the version many of our parents followed. In the late 1990s, the Dow Industrials index began shifting toward a more growth-oriented profile, adding technology companies like Microsoft and Intel. More recently, it added Apple and Nvidia, continuing that trend.

Today, only five of the 30 components are still classified as true "industrial" stocks, including Caterpillar, which I discussed on Aug. 25.

Despite this evolution, the Dow continues to lag on a relative basis. Might it be time to start narrowing the gap to the S&P 500 and Nasdaq? Let's examine three of my favorite charts that could help determine whether the Dow is poised to narrow that performance gap into year end.

The Dow Jones Industrial Average was trading at 46423.38 Thursday.

Apple, the third-largest company by market capitalization, is up a modest 3% year to date. However, the stock might be poised for a breakout. It's difficult to adopt a bearish stance when such an influential market heavyweight exhibits a constructive technical setup. Over the past three months, Apple has gained 22% and is now consolidating tightly in recent weeks, forming a classic bull flag pattern. The stock is trading just 1% below its 52-week high and a breakout above the $260 pivot could trigger a measured move toward $295. Such a move would also dispel concerns about a possible double top in this zone, stemming from late 2024. That area previously marked the start of a bearish evening star pattern, which led to a decline of more than $90. As long as Apple holds above $251, the technical picture remains firmly bullish.

Apple was trading at $254.19 Thursday.

Amgen, the lone biotech company in the index, was added in 2020, replacing Pfizer. The stock is up 13% year to date and pays a healthy dividend yield of 3.2%. It should benefit from the underlying strength in the biotech space. Last week Amgen jumped 9%, but the stock needs to show better consistency as it hasn't recorded back-to-back weekly advances since June. It trades 12% off its most recent 52-week high and is flirting with the very round $300 number for the sixth time since undercutting the level on April 4. One has to admire the 200-day simple moving average starting to curl higher for the first time since the first quarter, and the stock is forming a handle on a double bottom base and should be bought above a 301.76 pivot.

Amgen was trading at $295.28 Thursday.

Chevron, the only energy holding in the Dow, is up a modest 5% in 2025. While its price performance has been relatively subdued, it offers the second-highest dividend yield in the index at 4.5%, trailing only Verizon. The stock currently trades 9% below its 52-week high and notably has yet to post a three-week losing streak this year. On the daily chart Chevron found firm support at its 200-day simple moving average, where it printed a bullish hammer candle on Oct. 7. This action followed a pair of doji candles on Oct. 3 and Oct. 6, an indication that selling pressure is abating. One can enter here, with and add to above the double bottom breakout level at $161.40. Remain bullish if the stock holds above key support at $148.

Chevron was trading at $152.66 Thursday.

Write to Doug Busch at douglas.busch@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 09, 2025 11:55 ET (15:55 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.