The Dow Jones (DJIA) is trading higher ahead of Thanksgiving after the Department of Labor announced that applications for initial U.S. unemployment benefits fell to a seven-month low.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Initial jobless claims for the week ended November 22 decreased by 6,000 to 216,000, marking the lowest level since mid-April and below the consensus estimate of 225,000. These claims provide a gauge for layoffs. Furthermore, continuing jobless claims for the week ended November 15 rose to 1.96 million from a revised 1.953 million, coming in slightly below the estimate of 1.963 million.
The data signals that employers are still hesitant to both fire and hire employees. Initial jobless claims have stayed in a steady range, while continuing claims have risen since September. “Jobless claims remain low while continuing claims stay high,” said Schwab Center for Financial Research Chief Fixed Income Strategist Kathy Jones. “The low hiring/low firing job market remains intact.”
Meanwhile, the odds of a 25 bps rate cut at the December 9-10 Federal Open Market Committee (FOMC) meeting remain at an elevated 84.9% on CME’s FedWatch tool, up from 30.1% a week ago. Fed Bank of New York President John Williams, a close confidant of Fed Chair Jerome Powell, sparked the rally last week after voicing his support for a rate reduction.
Finally, the Atlanta Fed now expects third-quarter real gross domestic product (GDP) growth of 3.9%, down from 4.0% a day ago. The branch cited September’s durable goods orders growing by 0.5% month-over-month, down from 3% in August, as the reason for the change.
The Dow Jones is up by 0.94% 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.
Retail stocks are trading higher ahead of the Black Friday sales event, with Nike (NKE), Walmart (WMT), and Home Depot (HD) all in positive territory. Tech is also performing well, although Salesforce (CRM) is dragging the sector lower after Citi slashed its CRM stock price target to $253 from $276.
Elsewhere, stocks in the communication services, energy, financial, and industrials sectors are adding to the positive momentum. Boeing (BA) is a standout performer on the day after the aerospace company won contracts from the Department of War worth roughly $7 billion.
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 $525.62, implying upside of 10.62% from current prices. The 31 holdings in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.