Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



These 2 Stocks Are Leading the Dow Higher

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up after some positive reports on the economy. Twenty-seven of the 30 Dow components are up today. As of 1:15 p.m. EDT, the Dow was up 154 points to 15,064. The S&P 500 (SNPINDEX: ^GSPC  ) was up 18 points to 1,624.

There were two U.S. economic releases today.





Markit U.S. PMI








The Institute of Supply Management's purchasing managers' index rose to 50.9% in June from 49% in May. Readings above 50 indicate expansion while readings below 50 indicate economic contraction, and numbers further away from 50 mean expansion or contraction at a faster rate. June's rise was led by large changes in the New Orders and Production indices.

The employment index fell from 50.1 to 48.7, which is as perversely positive for the markets as it is a negative for employment. As part of its quantitative easing program, the Federal Reserve is purchasing $85 billion worth of assets each month and will continue to do so as long as unemployment remains high. Thus, the drop in the employment index is a good sign for the Fed continuing its purchases. We'll find out more on U.S. employment later this week. On Wednesday, ADP releases its private sector jobs report, and then on Friday the Department of Labor releases the June nonfarm payrolls report and unemployment rate.

Around the world, the Global Manufacturing PMI remained constant at 50.6. The HSBC China PMI dropped from 49.2 in May to 48.2 in June. Chinese manufacturing continues to slow, and investors should be wary of cyclical stocks if this trend continues.

Today's Dow leader
Leading the Dow today is United Technologies (NYSE: UTX  ) , up 2.16% to $94.95. Today, the company's Aerospace Systems division is celebrating the grand opening of its new headquarters in Charlotte, N.C. The division is the company's fourth largest, and in 2012 it made up 14% of sales and 12% of operating profit. Over the longer term, United Technologies is a dividend stalwart that has consistently raised its dividend, which now stands at $2.14 for a yield of 2.3%.

Coming in second for the Dow today is American Express (NYSE: AXP  ) , up 2.20% to $76.40. The company is one of the top four Dow stocks so far this year, having risen 30.9% over the past six months. As I've written about before, American Express benefits from the improving economy more so than its rivals MasterCard and Visa, as the company is not just a payment processor but also extends credit to its customers.

If you're looking for some long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2518747, ~/Articles/ArticleHandler.aspx, 9/25/2016 7:03:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:55 PM
^DJI $18261.45 Down -131.01 -0.71%
^GSPC $2164.69 Down -12.49 -0.57%
S&P 500 INDEX CAPS Rating: No stars
AXP $63.85 Down -0.78 -1.21%
American Express CAPS Rating: ****
MA $101.66 Down -0.46 -0.45%
MasterCard CAPS Rating: *****
UTX $102.56 Down -0.44 -0.43%
United Technologie… CAPS Rating: ****
V $82.54 Down -0.82 -0.98%
Visa CAPS Rating: *****