The Dow Jones (DJIA) is trading lower on Tuesday ahead of the Fed interest rate decision tomorrow, where the central bank is widely expected to cut rates by 25 bps.
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This morning, the Bureau of Labor Statistics (BLS) released October’s and September’s delayed Job Openings and Labor Turnover Survey (JOLTS). October’s job openings reached a five-month high of 7.67 million, slightly rising from 7.66 million in September and above the estimate of 7.2 million. However, the survey also revealed an October hiring rate of 3.2%, down from 3.4% in September. In addition, October layoffs totaled 1.85 million, increasing from 1.78 million and registering the highest level since January 2023.
“Yes, job openings ticked up in October, but it doesn’t matter if it’s not leading to actual hiring,” said Navy Federal Credit Union Chief Economist Heather Long in an X post.
Meanwhile, President Trump responded “yes” when asked in an interview with Politico if it would be a “litmus test” for his Fed Chair nominee to support immediate rate cuts. Trump also said that Fed Chair Powell has done a “bad job,” adding to criticism stemming from Powell’s stance of delaying interest rate cuts. Powell’s term as Chair ends next May, with betting markets largely favoring that Trump will nominate National Economic Council Director Kevin Hassett as his successor.
Furthermore, Trump warned that the “biggest threat in history to United States National Security” would occur if the Supreme Court rules against the legality of his tariffs. SCOTUS heard oral arguments for the case in November, although it isn’t clear when it will issue a decision. Betting markets predict that Trump will lose the case, assigning only 26% odds that the court will rule in his favor.
The Dow Jones is down by 0.15% 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.
Apple (AAPL) is trading slightly higher after Citigroup raised its price target to $330 from $315. In addition, UBS reiterated its “neutral” rating on AAPL stock and maintained its $280 target.
Meanwhile, Microsoft (MSFT) announced that it would invest $17.5 billion in India over the next four years to advance its AI and cloud infrastructure footprint. The investment marks the technology company’s largest investment in Asia.
Finally, Home Depot (HD) is in the red after the company guided for FY 2026 sales growth between 2.5% and 4.5% with comparable sales growth between 0% and 2%.
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 $537.18, implying upside of 12.34% from current prices. The 30 holdings in DIA carry 29 buy ratings, one hold rating, and zero sell ratings.
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