DIA - SPDR Dow Jones Industrial Average ETF

NYSEArca - Nasdaq Real Time Price. Currency in USD
+2.33 (+0.90%)
At close: 4:00PM EDT

261.82 -0.20 (-0.08%)
Pre-Market: 6:05AM EDT

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Previous Close259.69
Bid261.98 x 900
Ask262.98 x 1300
Day's Range261.49 - 262.66
52 Week Range216.97 - 273.99
Avg. Volume3,186,912
Net Assets21.86B
PE Ratio (TTM)N/A
YTD Return13.71%
Beta (3Y Monthly)0.98
Expense Ratio (net)0.17%
Inception Date1998-01-13
Trade prices are not sourced from all markets
  • Gundlach: Fed Has Lost Control—Where Is He Investing?
    Market Realist

    Gundlach: Fed Has Lost Control—Where Is He Investing?

    Amid the trade war, weakening economic indicators, and the yield curve inversion, Jeffrey Gundlach believes the Fed has lost control of interest rates.

  • ETF Trends

    Stimulus, Trade Hopes Prop Up QQQ, DIA, SPY ETFs

    Growing hopes that major global economies will step into spur growth and on optimism over U.S-China trade propped up U.S. markets and stock ETFs on Monday. On Monday, the Invesco QQQ Trust (QQQ) increased 1.5%, SPDR Dow Jones Industrial Average ETF (DIA) rose 1.0% and  SPDR S&P 500 ETF (SPY) was 1.3% higher. Among the latest to stimulate the economy, China's central bank revealed a key interest rate reform to lower borrowing costs for companies while Germany was looking at potential economic easing, Reuters reports.

  • Pre-Markets Surge to Start the Week; Estee Lauder (EL) Beats

    Pre-Markets Surge to Start the Week; Estee Lauder (EL) Beats

    Major U.S. indexes are swelling in today's early session, continuing from last week's climb up off the canvas following the worst trading day of the year on Wednesday.

  • A Few Reasons an Inverted Yield Curve Is Bullish

    A Few Reasons an Inverted Yield Curve Is Bullish

    Despite headlines painting the yield curve inversion as a major red flag, there are plenty of reasons to be bullish on U.S. stocks.

  • Sharp Rally Ends the Week's Roller Coaster Ride

    Sharp Rally Ends the Week's Roller Coaster Ride

    The S&P 500 bounced off support but remains vulnerable. The yield curve emerged from inversion, and the yuan remains low vs. the dollar.

  • Stock Market Today: Is GE a Fraud or a Screaming Buy?

    Stock Market Today: Is GE a Fraud or a Screaming Buy?

    What's more wild, the story unfolding with General Electric (NYSE:GE) or the volatility in the stock market?Headline after headline has been wreaking havoc on the broader markets, as volatility remains elevated and as investors try to figure out their next step. Trade war worries, imploding foreign stock markets and recession concerns are engulfing the news flow.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCasual investors will at least like the news from the stock market today, where the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) rose 1.25%, the SPDR S&P 500 ETF (NYSEARCA:SPY) climbed 1.48% and the PowerShares QQQ ETF (NASDAQ:QQQ) jumped 1.61%.Amid that calamity, the story unfolding with General Electric is even more interesting. Is GE Stock a Sham or a Buy?General Electric has been under pressure since it reported earnings. For months, readers here have been cognizant of $10.50 range resistance and $9 range support. The breakout never materialized and GE stock quickly sank down to support. * 10 Cheap Dividend Stocks to Load Up On It was an unimpressive showing, but not surprising given the volatility in the broader market and the suspect nature of GE's balance sheet. The most recent quarter showed that General Electric is inching its way out of trouble, but could still have some unknown risks, particularly with Boeing's (NYSE:BA) 737 issues.On Thursday, range support between $9 and $9.25 blew out, as reports began circulating that a whistleblower was sounding the alarm on GE's accounting practices. That whistleblower was Harry Markopolos, who also raised concern over Bernie Madoff before his ponzi scheme was uncovered.GE pushed back, saying it stands behind its financials and that it remains in a strong position of liquidity. GE even went as far as to say that Markopolos is being "compensated by unnamed hedge funds [that] are financially motivated to attempt to generate short selling in a company's stock."Wow, dramatic.It doesn't end there, though. GE CEO Larry Culp refuted the claims even more aggressively, calling it "plain and simple" market manipulation. He then went out and bought 2 million shares of GE stock!Analysts came out to GE's defense on Friday morning, as did the well-known short-seller of Citron Research, Andrew Left. The latter also corroborates GE's stance regarding hedge fund compensation, noting that, "As noted in the disclaimer on his site, Harry is being paid a % of profits from an unnamed hedge fund that is short GE. No credible hedge fund or short seller would ever do this."GE jumped almost 9% in response to Friday's news, (Here's the trade layout). Movers in the Stock Market TodayGE was an obvious mover on the day, but it wasn't the only one.Nvidia (NASDAQ:NVDA) rallied 7.5% on the day, showing some upside momentum after the company beat on earnings and revenue estimates. While the headline numbers look good and many believe in its long-term future, there are still some short-term concerns. Revenue sank 17.3% year-over-year and management expects third-quarter sales of $2.84 billion to $2.96 billion. Expectations were at $2.98 billion.Still, NVDA is on the move higher, which may be good news for bulls should the overall market start to rally too.Deere (NYSE:DE) stock was also on the move higher, climbing over 4% despite missing on bottom-line expectations. Earnings of $2.71 per share missed analysts' expectations by 13 cents. However, revenue of $10.04 billion handedly beat estimates by $660 million despite sinking 2.6% year-over-year.Shares of Palo Alto Networks (NYSE:PANW) were trading well on the day, up several percent before collapsing in the afternoon. PANW ended lower by 7.2% on news that Dave Peranich, EVP of worldwide sales, is leaving his post after three years on the job. Seems like it could be an overreaction, even if he was a top sales exec.Disney's (NYSE:DIS) latest billion-dollar hit is Toy Story 4, the company's fifth billion-dollar film this year. It now holds the record for most such films in a single year, while there is only one other competing film this year to top the nine-figure mark (Spider-Man: Far From Home). Further, the company announced last month that it had broken its prior annual box office record total of $7.61 billion, pulling in $7.67 billion in sales already in 2019.Don't forget, there's Frozen 2 and a Star Wars film still slated for 2019. It's going to be a huge year for Disney.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA and DIS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Stock Market Today: Is GE a Fraud or a Screaming Buy? appeared first on InvestorPlace.

  • ETF Trends

    Germany Paves Way for Stimulus Hopes; U.S. Stock ETFs Strengthen

    U.S. markets and stock ETFs rallied Friday as Germany's right-left coalition government works on plans to take on new debt to stimulate the economy. On Friday, the Invesco QQQ Trust (QQQ) increased 1.7%, SPDR Dow Jones Industrial Average ETF (DIA) rose 0.9% and  SPDR S&P 500 ETF (SPY) was 1.5% higher. “This is huge news from a European perspective,” Brad McMillan, chief investment officer of Commonwealth Financial Network, told Reuters.

  • Housing Data Mixed, Deere Misses Q3 Estimates

    Housing Data Mixed, Deere Misses Q3 Estimates

    New starts last month dropped to 1.191 million from the downwardly revised 1.241 million in June.

  • 3 Warning Signals a Stock Market Crash Is Coming

    3 Warning Signals a Stock Market Crash Is Coming

    Right now, we're still in perhaps the greatest bull run in history.The "weather" is terrific: low interest rates, an economy firing on all cylinders and a business-friendly administration in the White House. The Dow Jones Industrial Average recently hit 27,000 for the first time ever -- and, despite some recent turbulence, remains near record highs.But the longer this decade-plus bull market runs, the more investors worry about its end.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThey're right to worry. After all, every business cycle turns -- and so will this one.Economic recessions … real estate busts … stock market crashes … wars … financial shocks. These aren't aberrations. In fact, they are common occurrences. A quick tour of American history shows how this is the case. During the 110 years from 1900 to 2010, we've had the Great Depression, two world wars, more than 30 bear markets (market drops of more than 20%), the runaway inflation of the 1970's, the savings and loan crisis of the 1980's, the 2000-'02 dot-com crash and the 2007-'08 financial crisisI'm seeing signs that the next crash could hit soon.That doesn't mean you should panic and sell everything -- just that you should be prepared by defending your wealth. After all, there are always ways to make money, even if the market tumbles. * 10 Cheap Dividend Stocks to Load Up On So here are three warning signals I'm seeing that could cause problems for the market -- and one step you can take today to make sure you're prepared for the worst… Market Crash Warning Signal No. 1: Deep in DebtSource: Shutterstock Let's go back to 2007 … right before the last time the market crashed.The economy had been humming along at a growth rate of 2% to 3% for the previous five years, which caused the S&P 500's earnings to double from the recessionary lows of 2002. Thanks to these boom-time conditions, the national unemployment rate fell below 5%. Investors were loving it!Share prices had more than doubled over the previous five years. But below the surface, trouble was brewing.While the stock market was busy hitting new all-time highs, mortgage debt, credit card debt, student debt, corporate debt and government debt were also hitting new all-time highs. The U.S. economy was literally drowning in debt. The economy's foundation was crumbling beneath our feet.Then stock prices collapsed…The S&P 500 fell from its October 2007 high of 1,576.09 to an "apocalyptic" low of 666 in March 2009. That was a collapse of 57.7%.The economic and stock market conditions of today share some important traits with the 2007 version.The U.S. economy has recovered nicely from the 2007-2008 crisis, producing a steady string of 2% to 3% growth. As a result, the unemployment rate is below 5% once again.Plus, the current financial boom is even bigger than the 2002-2007 bull market. This time around, the S&P's earnings have tripled, as the stock market has rocketed more than 400% from its recessionary lows of 2009.But despite this prosperity, our economy looks shaky if you examine it up close. Mortgage debt is once again close to the nosebleed levels it hit in 2008. Credit card debt has jumped to a new all-time high of $870 billion. Student loan debt has skyrocketed to nearly $1.5 trillion. That's triple what it was in 2007. And corporate debt outstanding is hitting new all-time records, just like it was in early 2008. The difference is that the current levels nearly 50% higher than they were then.It's easy to "explain away" the market downturns we've seen so far this year -- in May and now in August -- as just temporary bumps during our decade-long bull run.But they could be the start of something much bigger… Market Crash Warning Signal No. 2: The Recession IndicatorSource: Shutterstock On the morning of Aug. 14, before the U.S. markets opened, we witnessed a rare but ominous event.That's when a closely watched yield curve inverted for the first time since late 2005. Translation: The 10-year Treasury bond yield dropped below the yield of the 2-year Treasury.This yield curve is a fairly reliable recession indicator. In fact, all five yield curve inversions since 1978 have been followed by recessions. Last time this yield curve inverted was in December 2005, two years before the recession hit.So, not surprisingly, investors and Wall Street's supercomputers immediately started selling stocks and moving into bonds. As you and your portfolio likely recall, the Dow Jones Industrial Average plummeted 800 points that day -- and the other market indices sunk around 3% as well.Starting from our peak back in late July, the S&P 500 has now sold off around 5%.Moreover, according to the New York Federal Reserve's proprietary yield curve-based recession probability model, there's a 27% chance we will face a recession in the next 12 months.I know … 27% doesn't sound like bad odds, but here's the thing: The last time the probability of a recession reached that high was back in early 2007, not long before the Great Recession kicked off. * 10 Stocks Under $5 to Buy for Fall Plus, one well-regarded analyst -- Jesse Colombo at Clarity Financial -- says the Fed indicator's modeling is skewed thanks to some top-level shenanigans back in the 1980's.He places the odds of a recession in the next year at 64%.In other words, our top "recession indicator" is flashing red. Market Crash Warning Signal No. 3: Another Kind of RecessionSource: Shutterstock As I write this, a second-quarter earnings recession is just about a done deal.With just about all of the S&P 500 components having reported, the year-over-year EPS growth estimate is negative 0.72%, according to FactSet.If that negative earnings score holds out, it would follow a 0.21% decline in the first quarter. And an earnings recession is defined as two consecutive quarter of negative growth.True, 0.72% and 0.21% declines don't sound bad. But here's the point…We're seeing no growth in corporate earnings.At best, according to the earnings followers at FactSet, S&P 500 earnings will grow 1.5% this year. That's far short the 6% growth the experts forecast at the start of 2019. In fact, FactSet says, we could see an earnings contraction.The last earnings recession was during the second quarter of 2016.The market fallout following that was small -- just 4.1% between mid-August and early November 2016.But things could get a lot worse this time.Consider these three factors… * More than one quarter of the world's bonds are "paying" a negative These "grifter" bonds literally take a little bit of your money away from you every day. * Geopolitically, the planet seems to be enjoying relative calm. but tensions are on the rise in Hong Kong, North Korea, Iran, and Syria. * The ongoing U.S.-China trade war is taking a bite out of global growth… and threatens to consume it completely. "This type of scenario is among the reasons why we referred to 2019 as a delicate year for the global economy," the International Monetary Fund recently warned.Still, despite these widespread signs of distress in the real economy, stock valuations are high, just like they were in early 2008.To be sure, the stock market could keep rising over the next few months -- and even hit new all-time highs. But history shows the risk of a severe selloff is high.The National Association for Business Economics recently surveyed nearly 300 business economists, and about 75% of them believe we'll get a recession by the end of 2021.More than half of them expect it'll come by the end of 2020. The One Step to Take Now That said, investors shouldn't panic -- or even worry -- about a market crash.The market crash may take months or even years to get here, but it's inevitable - and no effort on anyone's part is going to stop it.Instead of worrying, investors should make moves right now to defend their wealth - and make even more money along the way.To help you do so, I've written the book on bear market preparation.Part "diary" and part "owner's manual," Bear Market 2020: The Survival Blueprint takes you by the hand and walks you, step-by-step, through six simple tactics that will help you and your family survive, and even make money, during America's next bear market.Knowing about and using these bear market defense strategies could mean the difference between having an abundant retirement -- or barely getting by in your old age.In this report, I've shown you why a bear market -- or worse, a market crash -- is coming.The clock is ticking.Click here to find out how to get our survival guide.Eric Fry is a 30-year international finance expert, former hedge fund manager, and InvestorPlace's resident expert on global investment trends. He founded his own investment management firm and served as a partner several others. One of the few analysts who predicted the last big market crash, in 2007-'08, Eric showed his readers how to profit off of companies that eventually went bust. His readers could have walked away with gains like 1,415% on Countrywide Financial, 4,408% on Fannie Mae, and even 6,425% on Freddie Mac. With Fry's Investment Report, Eric's goal is to track the world's biggest macroeconomic and geopolitical events - and help investors make big gains from those emerging opportunities. Click here to learn more. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Warning Signals a Stock Market Crash Is Coming appeared first on InvestorPlace.

  • ETF Trends

    U.S. Stock ETFs Swing as Upbeat Data Help Offset Recession Fears

    U.S. markets and stock ETFs stabilized late Thursday as upbeat retail data helped offset the recessionary fears. On Thursday, the Invesco QQQ Trust (NASDAQ: QQQ) was flat, SPDR Dow Jones Industrial Average ...

  • Bet on These Momentum & High-Beta ETFs on Delay in Tariffs

    Bet on These Momentum & High-Beta ETFs on Delay in Tariffs

    Momentum and high-beta ETFs make very good picks right now as the market rally on delay in Trump???s new round of tariffs.

  • ETF Trends

    Flashing Recession Signal Causes U.S. Market Plunge

    U.S. markets and stock ETFs plunged Wednesday after Treasury markets triggered recession fears, following weak global economic data. On Wednesday, the SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) ...

  • ETF Trends

    QQQ ETF Surges 2.3% on Delays for Some Tariffs

    U.S. markets and stock ETFs climbed Tuesday after the Trump administration pushed off a previously planned 10% tariff on Chinese products. On Tuesday, the Invesco QQQ Trust (QQQ) surged 2.3%, SPDR Dow Jones Industrial Average ETF (DIA) rose 1.6% and  SPDR S&P 500 ETF (SPY) was 1.6% higher. Shifting away from its hardline approach to trade, the administration said it would delay increased levies on some Chinese products, including laptops, cellphones, video game consoles and certain items of footwear and clothing, which were scheduled to start next month, Reuters reports.

  • US Delays China Tariffs: Is Trump Scared of a Recession?
    Market Realist

    US Delays China Tariffs: Is Trump Scared of a Recession?

    The US has delayed the implementation of the new 10% tariff on China from September to December. Let's take a look at why.

  • 3 Dividend ETFs for Heaps of Monthly Income

    3 Dividend ETFs for Heaps of Monthly Income

    There's nothing better than getting paid for just holding on to an asset. Except if those dividends are paid monthly. Stocks that pay their dividends every month can provide faster compounding when those payouts are reinvested, not to mention budget simplification. After all, mortgage payments, car loans and utility bills are due every month. The only problem is, the number of individual stocks that pay their dividends monthly have been slowly dwindling over the years.Luckily, plenty of exchange-traded funds (ETFs) have moved in to fill the void.While the vast majority of monthly dividend ETFs own bond and fixed income assets, there are more than 40 funds that invest in equities. With these ETFs, investors can gain valuable diversification benefits, decent yields, and a steady monthly paycheck. In many cases, buying the diversified dividend ETF makes more sense than buying individual stocks that pay monthly. This can be especially true for those in or near retirement.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Dividend Stocks for Investors to Buy Right Now Do you buy a monthly dividend ETF? Which fund? How do you separate the wheat from the chaff? Luckily, InvestorPlace has done some of the work for you.With that, here are three monthly dividend ETFs worthy of your portfolio. Monthly Dividend ETFs to Buy: WisdomTree U.S. Total Dividend Fund (DTD)Dividend Yield: 2.13%If you're looking for a single-core fund to provide plenty of monthly dividends, then the WisdomTree U.S. Total Dividend Fund (NYSEARCA:DTD) has to be the first stop. Not only is DTD one of the oldest and largest monthly dividend ETFs on the market, it also has some of the widest coverage out of any ETF out there.WisdomTree is known for its fundamentally weighted and proprietary indexes. DTD is no different and racks the WisdomTree U.S. Dividend Index. This index screens and weights firms by the number of dividends they are projected to pay in the upcoming year.The best part is that the ETF does this across large-, mid-, and small-cap U.S. stocks. That's important as many dividend ETFs only focus on the big guys. Small- and mid-cap stocks can pay amazing dividends as well.Holdings for the ETF range from giants like Microsoft (NASDAQ:MSFT) to relative unknowns like J&J Snack Foods (NASDAQ:JJSF). All in all, with the inclusion of small- and mid-cap stocks, DTD boosts its holdings north of 860. This wide net provides plenty of diversification.It also pays some decent dividends. Currently, DTD pays a market-beating 2.13% yield. And the ETF has paid that dividend monthly since its inception. This yield, expanse of holdings, and monthly payment makes DTD one of the best core solutions for income seekers.Expenses for this dividend ETF run at a cheap 0.28%- or $28 per $10,000 invested. SPDR Dow Jones Industrial Average ETF (DIA)Dividend Yield: 2.10%For many retirees or investors near retirement, owning small-caps can provide some restless nights of sleep. After all, even dividend-paying smaller stocks still provide plenty of volatility. To that end, focusing on the big boys could be the way to go. And you can't get much bigger than the Dow Jones Industrial Average.While the Dow Jones does get called a flawed index due to its weighting formula, you can't deny that the index holds 30 of the biggest and most stable blue-chips in the world. This has a ton of appeal for investors.The SPDR Dow Jones Industrial Average ETF (NYSEArca:DIA) is the way to gain access.The "Diamonds" hold all thirty stocks in the index and provide access to leading firms like Bank of America (NYSE:BAC), Home Depot (NYSE:HD) and Visa (NYSE:V). It really is a who's who of America's leaders and provides instant access to these blue chips. The ETF is very liquid and trades millions of shares per day. Moreover, expenses for the fund are super cheap at just 0.17%.Unlike its holdings -- which pay quarterly dividends -- the DIA pays its dividend every month. This allows investors to own the biggest stocks in the nation and get the needed income to fit their budget. No wonder why more than $21 billion worth of investor cash sits in this dividend ETF. * 7 Stocks Under $7 to Invest in Now The fund is a great way to score a good monthly dividend from stocks. Invesco KBW High Dividend Yield Financial ETF (KBWD)Dividend Yield: 9.14%A quick scan of many of the top individual monthly dividend pay stocks happens to be mortgage REITs (mREITs) or business development companies (BDCs). Given the nature of their underlying businesses, stocks in these categories tend to be on the riskier side of things. Not to mention, they can be a bit difficult for laymen to evaluate and research. As a result, stocks like mREIT AGNC Investment Corp (NASDAQ:AGNC) compensate investors for that risk with yields in excess of 11%.But there is a way to score the high yield, reduce risk, and still get a monthly payout. That's through Invesco KBW High Dividend Yield Financial ETF (NYSEArca:KBWD).KBWD tracks the KBW NASDAQ Financial Sector Dividend Yield Index, an index of mREITs, BDCs, and other high-yield financial stocks. With it, investors can access up to 40 different stocks in these categories. This helps cut down on the risk and potential issues with individual stocks in the sector. However, what investors don't sacrifice is income. KBWD's broad portfolio still allows it to provide a massive 9%-plus dividend yield.Like the other two dividend ETFs on this list, KBWD pays their dividend monthly. Expenses for the fund clock in at just 0.35%.With its broad access to these risky stocks and its high yield, KBWD could be one of the best dividend ETFs to boost your overall monthly income. At the time of writing, Aaron Levitt did not own any stocks mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post 3 Dividend ETFs for Heaps of Monthly Income appeared first on InvestorPlace.

  • A Spread of Top-Ranked Value ETFs for the Current Market

    A Spread of Top-Ranked Value ETFs for the Current Market

    In a current scenario, value investing seems appealing to investors at present. We have presented a bunch of ETFs with a top Zacks ETF Rank 1 (Strong Buy) that will likely outperform in the coming weeks.

  • Yields and Stocks Resume Slide

    Yields and Stocks Resume Slide

    Stocks tumbled (again) on rising economic concerns, bond yields approached new lows, and the China large-cap ETF fell to key support.

  • ETF Trends

    Growing Fears of a Recession Drag on U.S. Stock ETFs

    U.S. markets and stock ETFs pulled back Monday on growing fears of a protracted U.S.-China trade war that would send the global economy into a recession. On Tuesday, the  SPDR Dow Jones Industrial Average ETF (DIA) fell 1.1% and  SPDR S&P 500 ETF (SPY) dropped 1.0%. Goldman Sachs Group Inc warned that the U.S.-China trade war could lead to a recession and it no longer expected a trade deal before the 2020 U.S. presidential election, Reuters reports.

  • Here's Why So Many Real Estate ETFs Near 52-Week High

    Here's Why So Many Real Estate ETFs Near 52-Week High

    As global central banks embark on a rate cut journey and global bond yields take a hit, these real estate ETFs are benefiting a great deal.

  • IBM and Red Hat Need to Prove the Skeptics Wrong

    IBM and Red Hat Need to Prove the Skeptics Wrong

    Up until this past week or two, International Business Machines (NYSE:IBM) stock has had a surprising year. IBM stock, which bottomed at $105 last winter, roared back to as high as $150, making for a cool 40% gain for anyone that bought near the lows. That said, IBM stock has retreated along with the rest of the market in recent days.Source: Shutterstock Still, IBM has had several reasons for its turnaround. For one thing, the massive deal to acquire Red Hat is wrapping up now. As IBM starts to integrate Red Hat into its broader product offerings, it gives the company some great upside potential. Generally, analysts have been quite dour about the deal, saying the company overpaid and will still struggle to unseat the big dogs in the cloud. With expectations on the low side, International Business Machines stock could get moving if the Red Hat integration achieves reasonably good results. A Huge Opportunity for IBM StockIn an investor presentation earlier this month, IBM laid out the case for optimism following the Red Hat acquisition. It starts with a huge addressable market. IBM views the hybrid cloud as a nearly $1.2 trillion market. That breaks down as $550 billion for cloud services, $350 billion for cloud software, $150 billion for infrastructure and $100 billion for equipment sold to the service providers for cloud companies.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Aristocrat Stocks to Buy Now No Matter What IBM at present has a roughly $125 billion market cap, so getting even a decent chunk of these fast-growing markets could turn the company's momentum around after its years of underwhelming performance. IBM also notes that in a recent survey, 58% of businesses said that they operate multi-cloud environments. This gives IBM and other companies more opportunity to catch up to the established leaders like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT).The government's current focus on concentrated power in the tech industry is another plus for IBM stock. President Donald Trump's administration has made moves to rein in the big tech titans this year. These include having the U.S. Department of Justice and the Federal Trade Commission investigate the big companies and Trump tweeting specific provocations toward certain firms. For example, Trump recently accused Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) of meddling in the 2020 election via its search algorithm in a series of Aug. 6 tweets.Against that backdrop, we have the military cloud decision. The U.S. Department of Defense was set to give a massive contract to Amazon or Microsoft. But thanks to the government's worry about big tech's monopoly power, this decision has now been delayed, opening the door to other players such as IBM. The Dow Jones Index FactorIt's important to note that the company's performance likely isn't responsible for all of IBM stock's gains this year. We must also consider the effect of index investing on IBM stock. What's going on here?IBM stock is one of the larger components of the Dow Jones Industrial Average, which as you probably know, only has 30 stocks. What you might not know is that the Dow Jones is price-weighted rather than market-cap weighted. This means that the higher a company's stock price, the more influence it has on the Dow Jones index. In parallel, it means that index funds such as the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) have much larger allocations to Dow components which sport a relatively high stock price.So the highest-priced stock in the Dow, Boeing (NYSE:BA), which has bobbled around the $350-per-share mark over the past six months, is the largest member of the index. Stocks under $100 have far less exposure in the Dow index and related passive funds. IBM stock, given its relatively high price, is among the top 10 holdings in the Dow. These 10 stocks make up more than half the entire index. So when people panic and sell the Dow as an index, as they did last fall, IBM stock gets clobbered. When people buy the market back up, IBM stock gets a big lift.This dynamic explains much of why IBM stock is doing so well compared to tech stocks that aren't in the index so far this year. If the market keeps going up, this will be a big tailwind for IBM stock as passive money flows in. But as we saw over the past week, sentiment can reverse on a dime. IBM Stock VerdictThis is an exciting time for IBM stock. The company has some serious momentum so far this year. For one thing, people are starting to wake up to the possibilities of the Red Hat acquisition. While the deal was mostly panned last year, analysts are rethinking it. Look at the hybrid cloud opportunity. If IBM can pull it off, the stock looks really cheap around $135.Right now, IBM stock is selling for 11x trailing earnings, less than 10x forward earnings, and a nearly 5% dividend yield. That's an incredible bargain in this market if IBM is able to return to any sort of consistent revenue growth. Even in a steady state where cloud growth offsets revenue declines in legacy businesses, investors would still make strong returns in IBM stock from this starting price.Now it's a question of execution. The vision and road map look great. But will they be able to deliver? IBM investors have suffered through years of underwhelming performance. Now is management's time to prove the doubters wrong. In coming quarters, we'll see if they can pull it off.At the time of this writing, Ian Bezek owned IBM stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Sell Right Now * 7 Stocks Under $7 to Invest in Now * 7 Marijuana Stocks With Critical Levels to Watch The post IBM and Red Hat Need to Prove the Skeptics Wrong appeared first on InvestorPlace.

  • Goldman Sachs: Trade War Boosts Risk of Recession
    Market Realist

    Goldman Sachs: Trade War Boosts Risk of Recession

    Goldman Sachs (GS) has cut its Q4 growth forecast by 20 basis points. It now foresees the trade war impacting growth more than it previously forecast.

  • 5 Multi-Asset ETFs to Consider Now

    5 Multi-Asset ETFs to Consider Now

    As global markets turned edgy at the start of August, these multi-asset ETFs appear to be good picks.

  • Stock Market Today: Tough Week for Warren Buffett

    Stock Market Today: Tough Week for Warren Buffett

    What a volatile week for equities. While the headlines may not show it, we had an up-and-down day in the stock market today. The SPDR S&P 500 ETF (NYSEARCA:SPY) fell 0.68% on Friday, but conflicting reports on trade had investors scratching their heads.Last week, the markets crept lower each day, with the steepest decline occuring Wednesday, July 31, when the Federal Reserve cut interest rates.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn Monday, U.S. equities plunged as tensions flared between the U.S. and China. As tempers calmed, Wall Street staged a rebound.The SPY finished the week relatively flat, with the PowerShares QQQ ETF (NASDAQ:QQQ) ending slightly higher and the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) ending slightly lower.Clearly, it's been an eventful week for investors. Let's look at the Nasdaq Composite to get an idea of what to expect come Monday: Nasdaq Update Click to Enlarge On Thursday, we went through the "what-ifs" of the S&P 500. The QQQ doesn't look all that different.I love simple setups and it's actually what we have when looking at the QQQ chart above.We knew it was likely that the markets would struggle with the 50-day moving average, simply on account of how quickly it rallied from its lows.While the ETF sold off on Friday, it held the 100-day moving average at its lows and bounced nicely on the day. * 7 Stocks Under $7 to Invest in Now Now back toward the 50-day, this can go one of two ways.Bears will look to gain control on a break below the 100-day moving average. Below it and $181 is on the table. Should shorts press it lower and break Monday's low, the 200-day is possible.On the upside, bulls could push the QQQ over the 50-day and reclaim the 20-day moving average. If that occurs, $192.50 to $195 is possible. Keep it simple: Over the 20-day is good for bulls, below the 100-day is good for bears. Tough Week for Warren BuffettIt was a tough week for some of Warren Buffett's top holdings at Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B). Buffett's second-largest holding, Bank of America (NYSE:BAC), fell 3.1% over the past five days. His eighth-largest holding, JPMorgan (NYSE:JPM) sank 2.4%. Fifth-largest in Buffett's portfolio, Wells Fargo (NYSE:WFC), dropped 2%. Buffett's seventh-largest holding, meanwhile, U.S. Bancorp (NYSE:USB) slipped 4.6%.Okay fine, so a number of bank stocks ended the week with only marginal losses, even though many were getting rocked at the start of the week. But none of it covers up the losses that Kraft Heinz (NYSE:KHC) and Teva Pharmaceuticals (NYSE:TEVA) logged. They dropped 17.2% and 10.6%, respectively.At just ~$300 million, Teva isn't that big of a position for Buffett. The flip side is that Berkshire has roughly the same number of shares as it did in the fourth quarter, according to the 13-F filings. With Teva down 55% on the year, this week's losses only added insult to injury. KHC is a much bigger holding, at No. 6 in the portfolio. That's despite the stock's 38% drop in 2019 and 55% fall over the last 12 months.Warren Buffett is still Warren Buffett, but he may want more than a Coke on Friday after the close. Movers in the Stock Market TodayYelp (NYSE:YELP) jumped over 5.5% on Friday after a better-than-expected earnings results. Shares are now teetering on an important level. Support is nearby, but a move back over Friday's highs could trigger an even further rally. Although the company grew revenue just 5.1% year-over-year and slightly missed expectations, investors are feeling good after management reaffirmed guidance.Yelp wasn't the only one rallying Friday, but there were a lot of losers.For starters, Dropbox (NASDAQ:DBX) fell more than 12.5% on the day and made new 52-week lows, albeit barely. The move comes despite the company beating on top- and bottom-line earnings estimates. The worry? Future growth.A day after Lyft (NASDAQ:LYFT) beat estimates and kickstarted an 8% rally in Uber (NYSE:UBER), the latter is giving almost all of those gains on Friday, falling about 6% after reporting a quarterly loss of more than $5 billion.Holy moly, how is that even possible? A lot of it is stock-based compensation from the IPO, but still, how can anyone feel good about a headline like that? Here are the must-hold levels for Uber stock.While General Electric (NYSE:GE) didn't report earnings on Friday, shares still slid lower by more than 3.5%. That's now the stock's seventh day of decline in eight trading sessions. Interesting Mortgage TidbitWith U.S. mortgage rates at their lowest level in three years, some economists are saying it won't do much to help the housing market.According to Issi Romem, senior director of housing and urban economics at Zillow, "It's a bit of an added lease on life for this housing cycle. I don't think it's going to dramatically change anything."Even crazier though? Denmark citizens saw its rates for 20-year mortgages hit 0% this week. One bank even offered a negative interest rate of 50 basis points on 10-year mortgages.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post Stock Market Today: Tough Week for Warren Buffett appeared first on InvestorPlace.

  • ETF Trends

    Trump “Not Ready to Make a Deal” With China

    U.S. markets and stock ETFs retreated Friday after President Donald Trump said a meeting with China could be canceled, throwing the markets into another trade-induced tailspin. “We’re not ready to make a deal, but we’ll see what happens,” Trump told reporters Friday morning. On Friday, the SPDR Dow Jones Industrial Average ETF (DIA) fell 0.2% and  SPDR S&P 500 ETF (SPY) was 0.5% lower.

  • Stocks Tumble as Trump Says No to China Deal and Huawei
    Market Realist

    Stocks Tumble as Trump Says No to China Deal and Huawei

    The markets were just grappling with the news of increasing trade tensions between the US and China when Trump stepped in to increase the pressure.