The Dow Jones (DJIA) is trading slightly lower on Monday as investors digest the risks of a potential government shutdown if Congress is unable to extend funding by the end of September.
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President Trump is set to host a meeting with top congressional leaders at the Oval Office as Democrats and Republicans continue to disagree about issues like an extension of Affordable Care Act subsidies and Republican-led cuts to Medicaid.
“Our position has been very clear: cancel the cuts, lower the costs, save healthcare,” said House Minority Leader Hakeem Jeffries on ABC’s This Week.
A government shutdown could also delay the release of key economic data. That includes nonfarm payrolls on October 3 and the Consumer Price Index (CPI) on October 15. This risks leaving the Fed in the dark on important labor and inflation data points ahead of the Federal Open Market Committee (FOMC) meeting on October 28-29, although Piper Sandler estimates that a shutdown would delay the data by around 10 days.
Meanwhile, President Trump renewed his threat to impose 100% tariffs on foreign films, saying in a Truth Social post that “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby.'” Trump didn’t specify when the tariff would go into effect, and it isn’t clear if he has the legal authority to impose the duty given that films are classified as intellectual property and a form of service instead of a good.
The Dow Jones is down by 0.12% 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 under pressure after Jefferies noted that demand for the iPhone 17 series is weakening, especially in the U.S. “Our tracking of lead time shows the US as the weakest market among the six we track, across all four model variants,” said the firm. Jefferies maintained its price target of $206 and “hold” rating.
Other Magnificent 7 members in the index, such as Nvidia (NVDA), Microsoft (MSFT), and Amazon (AMZN), are trading higher. On October 1, Amazon will shutter free shipping for multiple addresses under its Prime Invitee Program. That could potentially lead to more subscriptions and revenue for the e-commerce giant.
Elsewhere, most sectors across the Dow Jones are mixed. Chevron (CVX) is taking a hit from falling oil futures, while Boeing (BA) has reversed most of its gains from the Federal Aviation Administration (FAA) allowing the company to sign off on its airworthiness certificates.
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 $502.70, implying upside of 8.89% from current prices. The 31 holdings in DIA carry 29 buy ratings, two hold ratings, and zero sell ratings.
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