The Dow Jones (DJIA) is in the red on Wednesday as investors digest new inflation data from the Bureau of Labor Statistics (BLS).
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The Producer Price Index (PPI) rose by 0.2% month-over-month in November, in line with the consensus estimate but rising from 0.1% in October. PPI grew by 3% on an annual basis, above the estimate of 2.7% and accelerating from 2.7% in October. The index tracks changes in wholesale prices received by producers and is often seen as a leading indicator of consumer inflation. Several components of the PPI feed into the Personal Consumption Expenditures (PCE) Index, which the Fed uses as its key inflation gauge.
Core PPI, which excludes volatile food and energy prices, remained unchanged from the prior month with a year-over-year rise of 3%. Analysts were expecting 0.2% and 2.7%, respectively.
Many had expected the Supreme Court to issue a ruling on the Trump tariff case today, although investors will have to wait longer as the court remained silent during its opinion day. A decision could come as early as next Tuesday, although the court doesn’t announce in advance which rulings it will address. The odds of SCOTUS ruling in favor of the tariffs are at a low 34% on prediction platform Polymarket.
Strong consumer spending failed to lift the market, with November retail sales climbing by 0.6% month-over-month, above the estimate of 0.5% and marking the highest monthly growth since July. Online spending also got a boost from the holiday season and Black Friday, with shoppers spending a record $257.8 billion from November 1 to December 31, according to Adobe (ADBE).
The Dow Jones is down by 0.48% 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.
The tech sector is bright red, with both Nvidia (NVDA) and Microsoft (MSFT) down by over 2%. According to Reuters, Chinese customs authorities have instructed customs agents to block the entry of Nvidia’s H200 chips, effectively creating a ban. “The wording from the officials is so severe that it is basically a ban for now, though this might change in the future should things evolve,” said an anonymous source familiar with the situation.
Elsewhere, most financial stocks are trading lower as investors react to Trump’s demand to cap credit card interest fees at 10%. In addition, Visa (V) is taking a hit after Trump announced his support for the Credit Card Competition Act, which could lower swipe fees.
On the bright side, all four healthcare stocks are in positive territory, while Chevron (CVX) is rallying alongside a jump in oil futures.
Is DIA Stock a Good Long-Term Investment?
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 $547.13, implying upside of 11.83% from current prices. The 30 holdings in DIA carry 29 buy ratings, one hold rating, and zero sell ratings.
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