The Dow Jones (DJIA) is climbing higher on Friday and was able to secure a new all-time high of 47,049.64 despite a disappointing batch of economic data from the Institute for Supply Management (ISM).
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During September, the ISM’s Business Activity Index fell to 49.9 from 55, marking the lowest and first contractionary reading since May 2020. A reading above 50 indicates expansion, while a reading below 50 signals contraction. The overall Services Purchasing Managers’ Index (PMI) was also disappointing, falling to 50.0 from 52.0 and missing the estimate of 51.7. Furthermore, the Employment Index reading of 47.2 remained in contraction for the fourth consecutive month.
“Commentary in general indicated moderate or weak growth, with more isolated observations of supplier delivery challenges,” said ISM Chair Steve Miller. “Employment continues to be in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff.”
Another economic indicator, the Bureau of Labor Statistics’ jobs report, is facing delays as a result of the government shutdown. The report contains key labor market data essential to the Fed, such as nonfarm payrolls and the unemployment rate. If the shutdown extends further, the October 15 Consumer Price Index (CPI) could also be at risk of being delayed. That would leave the central bank in the dark on important labor and inflation data at a time when the job market has already shown signs of weakness.
Finally, President Trump has presented Hamas with a deadline of Sunday, October 5 to agree to the Gaza peace plan. “If this LAST CHANCE agreement is not reached, all HELL, like no one has ever seen before, will break out against Hamas,” Trump warned in a Truth Social post.
The Dow Jones is up by 1.13% 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.
Tech stocks are leading the way, with Apple (AAPL) resiliently in the green after Jefferies downgraded the company to “Underperform” from “Hold” on “excessive expectations” for the company’s future iPhones. The firm also slightly lowered its price target to $205.16 from $205.82.
Meanwhile, UnitedHealth Group (UNH) is continuing its strong performance, although the healthcare company is still down by about 28% year-to-date. Caterpillar (CAT) is also trading higher after Erste Group upgraded CAT stock to “Buy” from “Hold.”
Elsewhere, all three consumer defensive stocks are in the green, while Nike (NKE) is giving back some of its recent earnings gains.
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 $504.66, implying upside of 7.39% from current prices. The 31 holdings in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.