Stocks jumped again last month, buoyed by solid economic data and cooling tensions in the Middle East.
Goldman Sachs got some good news from the Fed's stress test.
Nike surged after its latest earnings report, signaling that its turnaround is underway.
June was another banner month for the stock market as investors reacted to solid economic data, diminishing concerns about the trade war, and an update from the Fed that showed it still planned to cut rates twice this year.
The S&P 500 closed at an all-time high, and while the Dow Jones Industrial Average was short of its peak in December 2024, the blue chip index still finished with solid gains.
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The chart below shows how all three major indexes performed last month, finishing with solid gains.
^DJI data by YCharts
As you can see, all three indexes surged late in the month, following the Fed's update and easing tensions in the Middle East. Let's take a look at the two best-perfoming stocks on the Dow Jones Industrial Average to see if any of them are worth buying.
There was no single reason why Goldman Sachs (NYSE: GS) soared nearly 18% in June, but the company seemed to benefit from the broad uptrend in the stock market, the improving IPO market, and expectations that the Fed will lower rates later this year.
Additionally, Goldman was a winner from the Fed's stress test as it had the biggest year-over-year improvement in results and could see its stress capital buffer decline by 300 basis points, giving the company more financial flexibility.
Goldman Sachs stock has soared over the last year and a half, meaning expectations are baked in, but if the economy remains healthy, it could gain further.
Image source: Getty Images.
Nike (NYSE: NKE) stock soared late in the month following a better-than-expected earnings report from the sportswear giant. Though the company is still struggling with headwinds that began under previous management and said tariffs would add $1 billion in costs this year, the stock had fallen far enough that any sign of turnaround was enough to lift investor spirits.
That's what they got last week, as Nike's results were better than expected results and guidance. While the road to recovery could take years, Nike's moves to rebuild wholesale relationships and invest more in new products seem to be paying off. Over the long term, the stock looks like a good bet to be a winner.
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Jeremy Bowman has positions in Nike. The Motley Fool has positions in and recommends Goldman Sachs Group and Nike. The Motley Fool has a disclosure policy.