The Dow Jones Industrial Average (DJIA) isn’t reacting well to the personal consumption expenditures (PCE) report for October 2024. This has the index falling 0.25% after inflation came in at 2.3% year-over-year. That matches experts’ estimates but is still above the 2% target the Federal Reserve is aiming for.
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Traders and economists are keeping a close eye on inflation data as it provides insight into the central’s banks decisions. That includes plans for interest rate cuts. With this latest data, there are concerns that the Fed may skip an interest rate cut at its meeting next month.
Stocks Weighing on the Dow Jones Today
Tech stocks are easily the biggest factor affecting the Dow Jones Industrial Average on Wednesday. That includes Microsoft (MSFT) falling 1.12%, Salesforce (CRM) dropping 3.61%, International Business Machines (IBM) experiencing a 1.58% slip, Cisco Systems (CSCO) sliding 0.81%, and Intel (INTC) declining 3.66%, as of this writing.
Tech stocks and growth stocks have a lot of overlap, and growth stocks are majorly affected by interest rates. That’s why the latest inflation news is weighing so heavily on the sector. Even so, this latest report doesn’t eliminate the possibility of an interest rate cut next month.
Are Dow Jones Stocks Worth Buying?
The stocks mentioned today may be pulling the Dow Jones lower, but that doesn’t mean they always will. Many of these are top performers in the market and are worth considering. Especially as today’s drop could make for an attractive entry point.
Keeping that in mind, below is a comparison of these stocks. Based on this data, Salesforce is a top pick with its analysts’ consensus rating of Strong Buy and Smart Score of 9 out of 10. Microsoft is likewise sporting a Strong Buy rating but only has a Smart Score of 6 out of 10. On the other hand, Cisco has a Moderate Buy rating but a Smart Score of 9 out of 10.
