Stock market outlook: Dow rally is widening beyond first-half winners

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The Dow's rally is broadening as first-half laggards catch up

. Through the first half of the year, Goldman, UnitedHealth, and Amgen were among the index's worst performers. The first two are the two highest-weighted stocks in the index.

"The Dow has had a strong start to 2H because some of its highest weighted stocks have started to work much better," DataTrek cofounder Jessica Rabe said."In fact, UnitedHealth and Goldman Sachs have accounted for almost half of the Dow's rally MTD. Additionally, Amgen – the Dow's 8th highest weighting – was the second most detrimental stock to the index in 1H, but its 5th best contributor MTD.

With non-tech names picking up the slack while stocks like Microsoft and Apple — the Dow's only two Big Tech names — have eased, the index generally looks more balanced as it enters the second half of the year. "Ultimately, the Dow's MTD advance shows a healthier capital markets setup for for 2H than 1H with the rally broadening out beyond Big Tech," Rabe said."This trend does, however, need to continue to maintain this important signal of market health."

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