Merck, JPMorgan Chase and Amphenol reach new highs as investors rotate toward defensives

Several blue-chip and healthcare-linked stocks pushed to new highs on July 2, reinforcing a broader pattern in which investors have been trimming riskier areas of the market and adding to more defensive names, according to a market roundup published by Investor’s Business Daily.

The roundup highlighted Merck, JPMorgan Chase and Amphenol as stocks benefiting from that shift. It framed the moves as part of a rotation away from tech and semiconductor stocks and toward steadier sectors, with the Dow Jones Industrial Average hitting record levels during the same period.

JPMorgan Chase was one of the two Dow components singled out in the piece, alongside Merck. The report said JPMorgan was trading around entry points, a reference commonly used by technical analysts to describe levels near which investors may consider buying after a breakout or trend improvement.

On the healthcare side, the report pointed to Merck, which it described as being in a “buy zone” after reaching a new high. It did not attribute the move to a specific company event such as an earnings report, guidance update or regulatory decision, instead focusing on the stock’s chart performance within the day’s market narrative.

Beyond the Dow, the roundup also included Alignment Healthcare and Amphenol, describing both as IBD 50 names. It said Amphenol had broken out of a consolidation pattern, another technical-terms reference indicating a stock moving out of a trading range into a new directional trend.

The overall theme, according to the report, was that as investors looked for less volatile exposures, certain large-cap businesses and select healthcare-related stocks attracted incremental demand. That dynamic can matter for stock selection because rotation-driven flows often favor companies perceived to be more resilient in uncertain economic conditions.

Still, the post did not provide detail on what, if anything, changed at the companies themselves to drive the new-high prints. It offered a market and technical framing, without citing new filings, product approvals, deal announcements or analyst revisions tied directly to the same day’s price moves.

Traders and investors will likely watch whether these stocks can hold the elevated levels in subsequent sessions, since “new high” and “entry point” language is typically followed by confirmation indicates such as follow-through buying, continued volume and the absence of sharp reversals. Any near-term company-specific disclosures, including earnings or corporate updates, could also affect whether the technical trend persists.