The Dow Jones (DJIA) is trading in negative territory on Thursday ahead of President Trump’s August 1 trade deal deadline.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Inflation has been muted in recent months, but could be on the rise as Trump’s tariffs begin to creep into the economy. The core personal consumption expenditures (PCE) index, which is the Fed’s preferred gauge of inflation, rose by 0.3% month-over-month and 2.8% year-over-year in June. Economists were expecting a monthly rise of 0.3% and a yearly rise of 2.7%. Core PCE excludes volatile food and energy prices.
Following the higher-than-expected reading, the odds of a 25-bps rate cut next month fell to 39.0% compared to 46.7% yesterday and 58.4% a week ago.
The market received a lift after Trump announced a trade deal extension with Mexico, the largest single-country trading partner of the U.S. The extension includes a 25% penalty tariff targeting fentanyl trade, a 25% tariff on cars, and a 50% tariff on steel, aluminum, and copper.
“There will be continued cooperation on the Border as it relates to all aspects of Security, including Drugs, Drug Distribution, and Illegal Immigration into the United States,” Trump said in a Truth Social post. The U.S. had a significant $171.8 billion goods trade deficit with Mexico in 2024.
The Dow Jones is down by 0.32% 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.
Microsoft (MSFT) is leading all Dow Jones tech companies on Thursday after its earnings beat expectations on both revenue and adjusted EPS. Microsoft is the second company after Nvidia (NVDA) to surpass a $4 trillion market capitalization. Magnificent 7 member Amazon (AMZN) is also tagging along in the green.
On the other hand, UnitedHealth Group (UNH) is is still reeling from a disappointing earnings report and an ongoing Department of Justice investigation into its Medicare billing practices. Healthcare component Merck (MRK) is also falling after the company announced a pause on its Gardasil shipments to China until at least the end of 2025.
DIA Stock Moves Lower 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 falling 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 $490.77, implying upside of 10.28% from current prices. The 31 stocks in DIA carry 29 buy ratings, 2 hold ratings, and zero sell ratings.