Dow Jones Industrial Average: JNJ Leads Gains, AMZN Falls

Johnson & Johnson led the Dow Jones Industrial Average, trading up 4.3% and registering an 11.9% gain year to date. Amazon.com was the worst performer, trading down 0.8% and showing a 2.4% gain year to date. Microsoft and Travelers Companies also made moves, trading down 0.4% and up 1.2%, respectively.

Johnson & Johnson (JNJ) led the Dow Jones Industrial Average (DJIA) on July 2, 2025, trading up 4.3% and registering an 11.9% gain year to date. The company's stock performance was driven by better-than-expected second-quarter results and a raised outlook for the second half of the year. This positive momentum was further boosted by a significant reduction in the company's estimate for the impact of tariffs in 2025.

During a conference call to discuss the company's second-quarter results, Chief Financial Officer Joe Wolk announced that the tariff cost estimate for 2025 was slashed to approximately $200 million, down from the previous estimate of $400 million. This reduction is attributed to the company's MedTech business and is expected to be reinvested in its drug pipeline and the launch of new products [1].

The company's Chief Executive Joaquin Duato praised the Trump administration's new tax policies, noting that they are already creating American jobs and driving innovation. Duato also highlighted Johnson & Johnson's plan to invest more than $55 billion in the U.S. over the next four years towards manufacturing, research, and technology. The goal is to manufacture all medicines consumed in the country in the U.S. [1].

Johnson & Johnson's stock climbed 4.5% in morning trading, enough to pace the S&P 500 index's SPX gainers. The latest quarter saw adjusted earnings per share fall to $2.77 from $2.82 a year ago, but sales grew 5.8% to $23.74 billion, above the FactSet consensus of $22.85 billion. U.S. sales grew 7.8% to $13.54 billion, and international sales rose 3.2% to $10.2 billion. The company also raised its full-year sales outlook to between $93.2 billion and $93.6 billion [1].

Rival companies in the sector also saw positive movements, with Pfizer Inc. (PFE) up 1%, Eli Lilly & Co. (LLY) advancing 1.6%, and Merck & Co. Inc. (MRK) up 0.6% [1].

Amazon.com, Inc. (AMZN) was the worst performer, trading down 0.8% and showing a 2.4% gain year to date. Microsoft (MSFT) and Travelers Companies (TRV) also made moves, trading down 0.4% and up 1.2%, respectively [2].

References:
[1] https://www.morningstar.com/news/marketwatch/20250716188/johnson-johnsons-stock-surges-as-tariff-cost-estimate-slashed-and-profit-outlook-raised
[2] https://finance.yahoo.com/quote/AMZN/