The Dow Jones (DJIA) is trading slightly higher on Friday in response to an encouraging jobs report and a ruling on President Trump’s Section 122 tariffs.
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New trading tool for QQQ bullsThe U.S. Bureau of Labor Statistics (BLS) announced nonfarm payrolls in April rose by 115,000, topping the consensus estimate of 65,000. Hiring for March was revised higher by 7,000, while February was revised down by 23,000. In addition, the unemployment rate remained steady at 4.3%, matching the estimate.
Healthcare led hiring in recent months, but other sectors are now gaining momentum, including retail trade, transportation, and warehousing. “Is the hiring recession over in the United States? We are seeing encouraging signs…” said Navy Federal Credit Union Chief Economist Heather Long.
Elsewhere, the U.S. Court of International Trade ruled Trump’s Section 122 tariffs illegal in a 2-1 vote on Thursday evening. However, the ruling only affects the plaintiffs in the case, while the tariffs are set to expire in July anyway. The Trump administration is expected to appeal the ruling. “Nothing surprises me, so we always do it a different way,” Trump told reporters. “We get one ruling, and we do it a different way.”
Finally, the University of Michigan’s Index of Consumer Sentiment dropped to an all-time low of 48.2 in May, down from 49.8 in April and falling short of the estimate of 49.5. The decline in sentiment was driven by a 9% drop in the current conditions index, reflecting heightened concerns about personal finances, inflation, and gas prices.
The Dow Jones is up by 0.07% 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.
Cisco (CSCO) is leading the tech sector higher on Friday and reached an all-time high of $96.06, bringing its year-to-date return to 26%. Nvidia (NVDA), Apple (AAPL), and Amazon (AMZN), the Magnificent 7 members within the index, are all in the green as well.
Elsewhere, all three consumer defensive stocks are trading higher, while Boeing (BA) is in positive territory after winning a $125 million contract from the Air Force. Other sectors, including communication services, healthcare, and energy, are muted on the day.
Is the Dow Jones 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 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 $576.40, implying upside of 16.12% from current prices. The 30 holdings in DIA carry 30 buy ratings, zero hold ratings, and zero sell ratings.