what is the dow jones doing right now

It’s been an “everything buy bonds” bull rally in markets for months, but BofA is cautiously watching a couple of indicators. Javier Milei’s measures to tame Argentina’s inflation have boosted the peso to the top, rising 25% against the US dollar in the last three months. A first-quarter GDP slowdown, paired with hotter inflation, is a sign of trouble for the Fed.

Historical Prices for Dow Jones

Honeywell is an industrial company and that continues to beat earnings expectations in what many have characterized as a difficult economy. The company also tends to guide conservatively, thus having the potential to outperform. After you https://forexbroker-listing.com/hotforex/ digested that fact, then consider its cloud revenues grew by 24%. The point there is that Microsoft is incredibly well positioned as AI takes off. Yes, the company is seeing some softness in relation to demand for its AI CoPilot product.

Alphabet, Microsoft Earnings Boost Market

Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses. The Dow is worth a closer look for risk-averse investors or anyone who wants a less expensive opportunity in today’s market. So, they are more valued for their present earnings rather than what they could make in the distant future. The tech companies in the Dow — Apple, Microsoft, Cisco Systems, International Business Machines, Intel, and Salesforce — are all proven businesses and leaders in their fields. The tech sector rallied sharply, with the Nasdaq Composite up more than 2%.

Tech Stocks Shine as the Market Roars

Microsoft stock, along with many other tech shares, is currently being punished by the markets as the rate cut fears increase and treasury yields rise. Investors should take this brief opportunity to pick up Microsoft shares as it will not last. Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant.

Dow Jones Industrial Average (DJIA) Live Index Chart

In late hours, Tesla Inc. soared as the electric-vehicle giant said it will accelerate the launch of more-affordable models — and chief Elon Musk struck an upbeat tone. The stock halted a seven-day plunge that drove it to “oversold” levels, climbing alongside other members of the “Magnificent Seven” cohort of megacaps on Tuesday. Texas Instruments Inc. gave a bullish revenue forecast — a good sign for the chip industry. If you think about the industries that have contributed to economic growth over the last decade, a lot of them are tech-related.

In general, the Dow has underperformed during strong years in the stock market because the Dow has a higher focus on value and income, whereas the Nasdaq Composite focuses less on value and income. If the market is doing well, that probably means investors are willing to take on more risk, pay a higher price for growth, and gravitate toward Nasdaq stocks. It seems that fear is rising as we head toward the end of April.

what is the dow jones doing right now

Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. The other positive regarding Coca-Cola is that Wall Street believes there’s roughly an additional $8 of upside beyond its current $58 price. Look to Dow stocks for defensive strength and to KO stock for strength within that strength. The good news is that oil prices continue to be strong on turmoil in the Middle East. I believe that that will be the more important story for Chevron and other energy firms moving forward.

The S&P 500 continues to fall as the markets wonder whether there will be any rate cuts at all in 2024. Treasury yields are also rising causing investors to diversify away from the stock market and into perceived safety. The reason that matters is that investors are currently seeking safety. That combination of factors is strongly suggestive of softness for more tech-oriented shares and other growth stocks. Conversely, it is a boon for more defensive stocks like those found on the Dow. Despite the uptick in a key inflation metric, market risk appetite remained high and markets are leaning into current rate cut expectations.

Search the term ‘all weather stocks’ or something  similar and Coca-Cola is almost certain to come up. I’m probably beating a dead horse here but it’s shares have a very long history of thriving in the best and worst of times. The point is that if current fear materializes into something more serious, Coca-Cola is well positioned. Welcome to our coverage of the Dow Jones Industrial Average (DJIA) today, a key barometer of the U.S. stock market’s health.This page features a real-time Dow Jones futures chart. The Dow Jones Industrial Average (DJIA), Dow Jones or the Dow for short tracks the performance of 30 of the biggest companies in the US including Boeing, Intel, and Dow.

Despite the impressive return, the Dow is still underperforming the Nasdaq Composite and the S&P 500 year to date. The Dow has also underperformed the other two major indexes over the last five-year and 10-year time periods. The inclusion of a company in the Dow Jones Industrial Average does not depend on defined criteria. Instead, an independent Wall Street Journal commission decides whether a share is to be included or excluded. There are no fixed times for reviewing the composition of the index, since changes are only made by the commission as and when they are needed. Like the Swiss Market Index (SMI), the Dow Jones is a price index.

Despite still-high inflation, price growth is still lower than many investors feared, and market participants will be increasingly focused on next Friday’s US Nonfarm Payrolls (NFP) report. A still-tight US labor market will have investors looking for slack in US labor figures to help push the Fed towards a first rate cut by September. Dow stocks tend to be more defensive although they certainly have significant growth potential in some cases. Anyway, they look strong at the moment as the markets digest the latest news on rate cuts and Treasury yields.

Frankly, I don’t think the economy is in much trouble currently. I do think that there is a lot of geopolitical turmoil, however. Will Friday’s jobs report bring relief or more angst for the markets? The 2-year Treasury yield was at 4.998% while the 10-year yield hit 4.67%. Yields pulled back after the personal-consumption expenditures, or PCE, price index for March came in mostly in line with expectations.

Speaking anecdotally, I was recently visiting Korea which is quickly becoming a cashless society. Fintech will continue to grow and Visa has a strong lead through the massive Network it has built over several decades. I’d argue that investing in the Dow in April is a particularly smart move. Stocks listed in the Dow tend to be more defensive than the Nasdaq and other indices.

  1. Will Friday’s jobs report bring relief or more angst for the markets?
  2. The shares included in it are weighted according to price; the index level represents the average of the shares included in it.
  3. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now…
  4. It seems that fear is rising as we head toward the end of April.

If you do want some growth and are willing to take on more risk, you may want to avoid stocks like Verizon Communications and Walgreens Boots Alliance. Instead of buying a Dow ETF, you can pick your 10 favorite Dow stocks and buy a share of each to create your own mini Dow portfolio. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice.

While the report showed price growth continues to be stubborn, traders were worried the inflation would come in even hotter than economists had forecast. A lot of Dow stocks have inexpensive valuations relative to the market. Slow-growing Dow companies like Procter & Gamble, McDonald’s, and Walmart aren’t going to wow you with their growth. But they will hold up extremely well during an economic downturn while supporting reliable dividend growth. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Wall Street-bearish contrarian trading bias.

The author has not received compensation for writing this article, other than from FXStreet. US Core PCE Price Index inflation held steady at 2.8% for the year ended in March, holding above the forecast decline to 2.6%. Headline PCE Price Index inflation also rose to 2.7% over the same period, climbing from 2.5% and accelerating above the forecast 2.6%.

Bears that focus on that fact are missing the larger narrative which is that Microsoft is growing by leaps and bounds due to AI. Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.

FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Its top-performing sector, communication services, was up 2.7% and being led by Alphabet. Meanwhile, Super Micro Computer, Nvidia, and other AI plays were leading the technology sector, which was up about 1.3%. Earnings reports from Google’s parent Alphabet and Microsoft breathed new life into the market on Friday. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now…

Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions. Earnings reports from Alphabet and Microsoft after the close on Thursday sent shares rallying in Friday’s session. Beyond the companies themselves, updates on artificial intelligence investments boosted chip stocks. Overall, it has a unique combination of steady industrial sector performance and income.

While I have no problem with that logic I also think that those same investors should look at McDonald’s. The company is entering its fastest period of growth in its history. However, that growth is not predicated on AI making it much less risky.

Just think about how much phones have evolved and all the industries and companies that have benefited. Or e-commerce, streaming, cybersecurity, cloud and software infrastructure, semiconductor innovations, mobile banking, electric vehicles, the energy transition, and more. These are just some of the trends that have driven growth in the Nasdaq more than the Dow. On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article.

A bet on the Dow over the Nasdaq is a bet on proven strength and stability instead of potential growth. The stark contrast in valuation shows that premium investors are willing to pay for growth right now. And it also shows that, despite a strong year-to-date return for the Dow, the index is still a fairly good price.

Though Friday’s core PCE showed stubborn inflation, traders were able to look past the report thanks to the latest round of tech earnings. A rally in tech heavyweights lifted the broader stock market, with the group’s high-stakes earnings seen by Wall Street investors as a major test of the bull run in equities. For example, if you’re looking for value and income over growth, you may not want to invest in a company like Salesforce at all.

It’s often used as a barometer for the overall performance of the country’s equity markets. Follow the Dow Jones live with the real-time chart and view the latest Dow forecasts, news and analysis. Key pivot points and support and resistance will help you trade the Dow Jones today and into the future. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA).

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. FXStreet and the author umarkets review do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information.

The Invesco QQQ Trust’s expensive multiple shows that investors are banking on future earnings, not present earnings. And because of that, Nasdaq stock prices have grown at a faster rate than earnings. Markets are still pricing in a 44% chance of at least two rate cuts from the US Federal Reserve (Fed) this year, with 60% odds of a first rate trim in September according to the CME’s FedWatch Tool.

Honeywell builds robotics that have the potential to replace factory floor workers. The company is applying AI to those machines and has a real shot at creating highly valuable use cases for manufacturing oriented firms. The stock market roared higher on Friday, after the latest wave of tech earnings overshadowed worries about sticky inflation.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The company recently announced its 14th dividend increase since 2010. During that time frame the income provided has increased from $1.21 to $4.32 at present. It’s evident in the fact that energy sector returns have essentially mirrored tech returns thus far in 2024. Chevron is the best Dow stock by which to capture those gains moving forward.

Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index. Intel is expecting quarterly revenue between $12.5 and $13.5 billion, whereas market forecasts were hoping for at least $13.6 billion. Intel also expects adjusted earnings per share to fall below Wall Street forecasts. Stocks climbed Friday, as investors digested positive earnings reports from Alphabet and Microsoft and the latest inflation data.

And SPDR Dow Jones Industrial Average ETF Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. With just a 0.16% expense ratio, the Dow ETF Trust provides a simple way of investing https://forexbroker-listing.com/ in the Dow. But an even better approach may be to use the Dow as a starting point to find companies that fit your investment objectives. The Dow Jones Industrial Average achieved a new all-time high close of 37,557.92 on Dec. 19.

The shares included in it are weighted according to price; the index level represents the average of the shares included in it. Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. The Dow Jones is set to snap a three-week losing streak, and on pace to close just north of the 38,300.00 handle after a 5.8% decline top-to-bottom from 39,887.49 that began in mid-March. The Federal Reserve’s preferred inflation gauge was up 2.7% from a year earlier in March, in line with expectations. Here’s why the Dow could beat the Nasdaq in 2024, and why the index is a treasure trove of growth, value, and income.

Investors turn to Consumer Packaged Goods firms and other shares that tend to benefit from steady demand across a variety of macroeconomic environments in such times. For those wondering if Microsoft is suddenly on the precipice of a long drawdown, don’t worry. Furthermore, Visa is the most widely accepted credit card globally. That’s particularly important as the world increasingly moves toward a more cashless global society.

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