The Dow Jones (DJIA) is in negative territory despite a better-than-expected jobs report and ahead of President Trump’s visit to the Fed headquarters.
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.
For the week ended July 19, the number of Americans filing for initial jobless claims decreased by 4,000 week-over-week to 217,000, below the estimate for 226,000. At the same time, continuing jobless claims, which lag initial jobless claims by one week, increased by 4,000 to 1.955 million. That came in just above the consensus estimate of 1.954 million. The two data points show that employers are keeping layoffs at bay but are also somewhat hesitant to hire more employees. Overall, the job market has remained stable with no consistent warning signals.
The Fed has less reason to cut rates with a strong labor market, as rate cuts can stimulate hiring. That goes against President Trump’s calls for the Fed to slash rates by 3%. Later today, Trump will pay a visit to the central bank headquarters, something a president hasn’t done since George W. Bush in 2006. The visit underscores the fraying line of political independence that the Fed is supposed to preserve.
“I look forward to touring the Federal Reserve today at 4pm ET,” said Federal Housing Finance Agency (FHFA) Director Bill Pulte in an X post, signaling that he will join Trump.
The Dow Jones is down by 0.49% 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.
International Business Machines (IBM) is leading the charge lower after the multinational technology company reported its earnings. While IBM’s revenue and adjusted EPS came in above estimates, its software revenue of $7.39 billion was below the consensus estimate for $7.43 billion.
UnitedHealth Group (UNH) is also taking a hit after the company disclosed that it is facing a Department of Justice investigation over its Medicare billing practices. UNH stock has shed about 45% year-to-date.
Fortunately, Magnificent 7 members Nvidia (NVDA), Microsoft (MSFT), and Amazon (AMZN) are helping buoy the Dow Jones.
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 $488.07, implying upside of 8.95% from current prices. The 31 stocks in DIA carry 29 buy ratings, 2 hold ratings, and zero sell ratings.