US manufacturing activity index drops to 49.1%, amidst tariff war
Amidst the ongoing Sino-American trade war, a leading gauge of U.S. manufacturing activity fell into contraction territory last month.
For the first time during U.S. President Donald Trump's tenure, the Institute for Supply Management's manufacturing index dropped to a reading of 49.1% in August - from 51.2% in July. The reading also came in lower than the 51.5% that economists had projected for August.
Any reading below the 50% level for the above-mentioned index is an indication of contraction in manufacturing activity.
Manufacturing accounts for 12% of U.S. gross domestic product (compared to consumer spending share of around 70%). The manufacturing survey should not typically signal a recession in the overall economy until readings fall below 42.9%, according to the institute.
While much of the U.S.-China tariff war narrative apparently centers around the objective of boosting U.S. industries, the decline in U.S. manufacturing activity could potentially imply headwinds to U.S. producers from rising tariff-induced costs of buying inputs/materials.
Momentum Indicator for DIA turns positive, indicating new upward trend
DIA saw its Momentum Indicator move above the 0 level on June 24, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 82 similar instances where the indicator turned positive. In of the 82 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for DIA just turned positive on June 26, 2025. Looking at past instances where DIA's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIA advanced for three days, in of 372 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 329 cases where DIA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DIA moved out of overbought territory on July 07, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 47 similar instances where the indicator moved out of overbought territory. In of the 47 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
DIA broke above its upper Bollinger Band on June 26, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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