The Dow Jones (DJIA) reversed early-morning losses caused by concerning labor market data on an encouraging services purchasing managers’ index (PMI) update. The services industry is the largest sector of the U.S. economy.
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The Institute for Supply Management (ISM) announced that August’s services PMI grew by 1.9 points to 52.0, above the estimate for 51.0. Within the index, new orders increased by 5.7 points to 56.0, the highest rate of growth since September 2024. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.
“Twelve industries reported growth in August, one more than in July,” said Steve Miller, chair of the ISM Services Business Survey Committee. “The Services PMI has expanded in 11 of the last 12 months, but the August reading of 52 percent is 0.4 percentage point below the 12-month average reading of 52.4 percent.”
Meanwhile, initial jobless claims grew by 8,000 to 237,000 for the week ended August 30, above the estimate of 230,000. Continuing jobless claims of 1.940 million fell below the estimate of 1.959 million but remain elevated. That comes as ADP private payroll additions fell by 52,000 to 54,000 in August, trailing the estimate of 65,000.
The Dow Jones is up by 0.47% at the time of writing.
Which Stocks are Moving the Dow Jones?
Let’s pivot to TipRanks’ Dow Jones Heatmap, which illustrates the stocks that have contributed to the index’s price action.
In a rough showing, Salesforce (CRM) is plummeting after the company reported its earnings, beating estimates for both revenue and adjusted EPS. However, the software provider issued third-quarter revenue guidance of $10.265 billion at the midpoint, below the analyst estimate of $10.29 billion. Its adjusted EPS guidance of $2.85 was in line with the estimate.
On the other hand, Amazon (AMZN) is catching a bid after the e-commerce leader announced that it would end free Prime shipping for multiple addresses listed on the same account. Effective October 1, only one address per account will be eligible for free shipping.
Elsewhere, all five financial stocks are trading higher, while Magnificent 7 members Nvidia (NVDA) and Microsoft (MSFT) are muted on the day.
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. As a result, DIA is rising alongside the Dow Jones today.
Wall Street believes that DIA stock has room to rise. During the past three months, analysts have issued an average DIA price target of $500.85, implying upside of 9.98% from current prices. The 31 stocks in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.