The Dow Jones Industrial Average (DJIA) is staging a comeback on Friday and is set to finish the week in the green. That comes despite some questionable economic news.
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The University of Michigan released its preliminary Index of Consumer Sentiment for May, showing a reading of 50.8, well below the expectation for 53.4. Sentiment dropped from 52.2 in April as consumers showed concern in regard to tariffs and personal finance.
Additionally, the university’s year-ahead inflation expectation jumped to 7.3% from 6.5% in April while the long-run inflation expectation increased to 4.6% from 4.4%. Both of these figures came despite April’s consumer price index (CPI) showing yearly inflation at 2.3%, the lowest reading since February 2021.
Meanwhile, the Atlanta Fed’s latest estimate for second quarter real gross domestic product (GDP) dropped to 2.4% compared to 2.5% on May 15. The bank noted that this morning’s housing start and import/export data contributed to the fall.
The Dow Jones is up by 0.63% at the time of writing
Which Stocks are Moving the Dow Jones?
Let’s pivot to TipRank’s Dow Jones Heatmap, which illustrates the stocks that have contributed to the index’s price action.
All four healthcare stocks within the index are registering a gain, with UnitedHealth Group (UNH) leading the way after three Directors disclosed insider buys. The Dow Jones’ two communication services stocks, Disney (DIS) and Verizon (VZ), are also rising higher. Today, the FCC announced that it had approved Verizon’s $20 billion purchase of Frontier Communications (FYBR).
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 $463.44 for the stocks within the index, implying upside of 8.82% from current prices. The 31 stocks in the DIA carry 30 buy ratings, 1 hold rating, and zero sell ratings.