The Dow Jones (DJIA) is trading in positive territory on Tuesday, while both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are in the red on weakness in the tech sector and job market.
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The end of the longest government shutdown in history seems to be approaching after the Senate voted 60-40 to pass a government funding bill on Monday. All but one Republican and eight Democrats voted in favor. Next, the bill will head to the House, with a vote expected by Wednesday. Finally, President Trump will need to approve the measure, although he has already said that he supports it.
“This has been a very long road, quite literally the longest shutdown in history,” said Senate Majority Leader John Thune. “I am very, very happy to be able to say that we are coming to the end.”
The shutdown has resulted in a lack of labor market data from federal agencies, although private data has continued to be published. ADP estimates that U.S. private payrolls fell by an average of 11,250 per week for the four weeks ended October 25, although the firm previously reported that the metric rose by 42,000 during the month. This is because the two differing numbers are calculated using different methodologies.
Furthermore, economists at Goldman Sachs (GS) believe that nonfarm payrolls likely fell by 50,000 during October. “Our job openings and labor market tightness trackers continued to decline, and our newly constructed layoff tracker also revealed an increase in layoffs over the past few months,” wrote Goldman in a note. The U.S. Bureau of Labor Statistics (BLS) last reported the metric in August, showing an increase of 22,000 jobs.
The Dow Jones is up by 0.82% 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.
Nvidia (NVDA) is the worst-performing tech stock on the day after SoftBank (SFTBY) announced that it had sold its entire $5.83 billion stake in the company. A person familiar with the situation told CNBC that the sale was transacted to help fund “sources of cash that will be used to fund the $22.5 billion investment in OpenAI.”
Meanwhile, Amgen (AMGN) is trading higher after CEO Bob Bradway shared results from a phase III trial of the company’s Repatha drug. Bradway said Repatha could reduce the risk of a first heart attack by 26% when taken along with standard cardiovascular treatments.
Elsewhere, all of the stocks in the consumer defensive and communication services sector are in the green, while the lone energy stock in the Dow Jones, Chevron (CVX), is catching a bid from rising 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 $526.48, implying upside of 10.24% from current prices. The 31 holdings in DIA carry 30 buy ratings, one hold rating, and zero sell ratings.
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