The Dow Jones (DJIA) fell as much as 0.41% in intraday trading on Tuesday, but has since recovered to positive territory following two economic data releases.
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President Trump’s tariffs have resulted in big swings in U.S. exports and imports. In June, the U.S. trade deficit fell by 16% month-over-month to $60.2 billion, marking the lowest level since September 2023. During the month, exports fell by 0.5% and imports dropped by 3.7%. Imports falling faster than exports contributed to an advance GDP estimate of 3.0% growth for the second quarter, signaling a significant rebound from the first quarter’s drop of 0.5%.
Following the deficit data update, the market moved lower after the ISM Services Purchasing Managers Index (PMI) surprised to the downside. July’s Services PMI registered at 50.1, below the expectation for 51.5. The reading also fell from 50.8 in June. A reading above 50 indicates expansion, while a reading below 50 indicates contraction. At 50.1, the services sector is still expanding, but is also edging closer to stagnation and contraction.
“July’s PMI level continues to reflect slow growth, and survey respondents indicated that seasonal and weather factors had negative impacts on business,” said Steve Miller, Chair of the ISM Services Business Survey Committee.
The Dow Jones is up by 0.08% 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.
Four of the five bank stocks within the index are trading lower following reports that Trump was planning an executive order targeting banks that discriminate against political views. Trump directly called out J.P. Morgan Chase (JPM) and Bank of America (BAC) for refusing his business in the past.
Tech stocks are trading lower, with Nvidia (NVDA) leading to the downside. Shares of the semiconductor have returned 58% during the past three months and are still near their all-time high.
Meanwhile, UnitedHealth Group (UNH) is in the green, although the embattled healthcare company has still shed about 50% year-to-date. On Monday, UnitedHealth announced Wayne DeVeydt as its new CFO, replacing John Rex.
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 $492.57, implying upside of 11.62% from current prices. The 31 stocks in DIA carry 29 buy ratings, 2 hold ratings, and zero sell ratings.