Dow Jones Index Today: DJIA Drops on Israel Strikes as Consumer Sentiment Jumps

The Dow Jones (DJIA) is down by over 1% as the market processes the impact of Israel’s attack on Iran’s nuclear and military facilities. Meanwhile, oil prices are surging as the conflict threatens to disrupt energy supply chains in the Middle East.

On Friday, President Trump said that Israel’s strikes will actually be a positive for the market. “I think ultimately, it would be great for the market because Iran will not have a nuclear weapon. It will be great for the market—should be the greatest thing ever for the market. Iran won’t have a nuclear weapon that was a great threat to humanity,” said Trump in an interview with the Wall Street Journal. Trump also added that he was aware of the attack before it occurred and that he plans to speak with Israeli Prime Minister Benjamin Netanyahu today.

Meanwhile, consumer sentiment has finally reversed a six-month slump based on the University of Michigan’s Index of Consumer Sentiment. The index’s preliminary June reading came in at 60.5, above the estimate for 53.5 and up from 52.2 in May. Furthermore, UM’s year-ahead inflation expectation tallied in at 5.1% compared to 6.6% last month. Long-run inflation expectations are now at 4.1%, down from 4.2%.

The Dow Jones is down by 1.32% at the time of writing.

Which Stocks are Moving the Dow Jones?

Let’s shift our attention to TipRanks’ Dow Jones Heatmap, which illustrates the stocks that have contributed to the index’s price action.

In a weak finish to the week, every single technology stock within the index is falling, led by Salesforce (CRM) and Nvidia (NVDA). In addition, payment providers Visa (V) and American Express (AXP) are taking a hit after the Wall Street Journal reported that Amazon (AMZN) and Walmart (WMT) are exploring the idea of issuing proprietary stablecoins.

Elsewhere, communications services, energy, and healthcare, excluding embattled UnitedHealth Group (UNH), are relatively muted as we head into the weekend.

DIA Stock Moves Higher with the Dow Jones

The SPDR Dow Jones Industrial Average ETF (DIA) is an exchange-traded fund designed to track the movement of the Dow Jones. In addition, DJIA can’t be bought or sold, although DIA can be.

Wall Street believes that DIA stock has room to rise. During the past three months, analysts have issued an average DIA price target of $466.70 for the stocks within the index, implying upside of 9.82% from current prices. The 31 stocks in DIA carry 30 buy ratings, 1 hold rating, and zero sell ratings.