After a brief fall to negative territory, the Dow Jones (DJIA) is back in the green after President Trump shared the details of his phone call with Chinese President Xi Jinping.
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The call marks the first communication between the leaders since June. It also comes after U.S. and China negotiators agreed on a framework deal to keep TikTok running in the U.S., which received approval from both Trump and Xi. Earlier this week, Trump extended the TikTok ban deadline by another 90 days to December 16.
“We made progress on many very important issues including Trade, Fentanyl, the need to bring the War between Russia and Ukraine to an end, and the approval of the TikTok Deal,” Trump said in a Truth Social post on Friday.
The two presidents are also planning to meet in-person at the upcoming Asia-Pacific Economic Cooperation (APEC) Summit in South Korea. In addition, Trump said that he would visit China “in the early part of next year,” while Xi will travel to the U.S. “at an appropriate time.”
Meanwhile, the Fed slashed interest rates by 25 bps on Wednesday, although the odds of two more rate cuts by the end of the year sit at 80.4%, according to CME’s FedWatch tool. Federal Reserve Bank of Minneapolis President Neel Kashkari is on board with this scenario, adding that a weak labor market justifies lower rates.
“I believe the risk of a sharp increase in unemployment warrants the committee taking some action to support the labor market,” Kashkari wrote on Friday.
The Dow Jones is up by 0.25% 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 leading tech stocks to the upside as preorders for its iPhone 17 series have received high demand. However, there are reports that some color variants of Apple’s iPhone 17 and iPhone Air are prone to scratch marks.
Meanwhile, three of the four healthcare stocks are up by at least 1%, with Merck (MRK) dragging the sector lower. This morning, UBS maintained its “Buy” rating and $378 price target for UnitedHealth Group (UNH), signaling upside of about 11.5%.
Elsewhere, consumer defensive stocks are taking a breather, while Chevron (CVX) is in the red alongside falling oil futures.
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 $501.78, implying upside of 8.49% from current prices. The 31 holdings in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.
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