The Dow Jones Industrial Average (DJIA) is rising Monday as investors celebrate the latest Foxconn earnings report, which is listed as Hon Hai Precision Industry (HNHPF) on the OTC. That’s thanks to its latest results including record revenue, which Foxconn attributes to growing artificial intelligence (AI) component demand.
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To better understand why this matters to the Dow Jones index, traders have to know Foxconn’s customers. It is the largest supplier of component assembly services to Apple (AAPL) and works with many other tech companies. Considering that, it makes sense that good news from the company would send the DJIA higher.
Another positive for the stock market today is a China trade war update. Insider reports claim President-elect Donald Trump won’t be as strict with tariffs as he’s promised. Instead, they claim the Trump administration will only target certain goods and not all of a country’s exports. This also ties back to Foxconn as it operates in China, which is Trump’s main target for tariffs.
Stocks Boosting the DJIA Index Today
Looking at the TipRanks DJIA heatmap tool, traders can see which stocks are causing the index to rally today. As mentioned, tech stocks are behind much of today’s positive movement, but there’s plenty of green in other sectors that are doing good for the index. This has it up 0.37% as of this writing.
How to Invest in the Dow Jones
Investors can’t take a direct stake in the Dow Jones Industrial Average as it’s only an index. Instead, they might consider buying shares listed on the exchange. Traders could go for stocks rising or falling depending on their investment strategies.
Another option is investing in an exchange-traded fund (ETF) that tracks the index. This lets traders bet on or against the DJIA. SPDR Dow Jones Industrial Average ETF Trust (DIA) is one popular example of an ETF in favor of the index, but plenty of options are available.
