Dow Jones Industrial Average
The Dow Jones Industrial Average, often referred to simply as the Dow Jones or the Dow, is one of the most well-known stock market indices in the world. It was created by Charles Dow and Edward Jones and was first published on May 26, 1896. The index is maintained by S&P Dow Jones Indices, a division of S&P Global.
The Dow Jones is designed to provide a snapshot of the overall performance of the 30 largest and most influential publicly traded companies in the United States. These companies are considered leaders in their respective industries and are chosen by the editors of The Wall Street Journal, which is also owned by Dow Jones & Company.
Originally, the Dow Jones only included industrial companies, hence its name “Industrial Average,” but over the years, the composition has evolved to include companies from various sectors, such as technology, finance, healthcare, and consumer goods. This diversification aims to represent the broader U.S. economy.
The value of the Dow Jones is calculated using a price-weighted methodology. This means that the index’s value is not based on the market capitalization of its constituent companies but rather on their stock prices. Therefore, higher-priced stocks have a more significant impact on the index’s movements than lower-priced ones.
The Dow Jones is often used as a gauge of the overall health and sentiment of the U.S. stock market and, to some extent, the global economy. Investors, analysts, and the media closely monitor the daily fluctuations of the Dow as an indicator of the market’s performance.
Companies in the index
| Symbol | Company | Exchange | Industry | Index weighting | ||
|---|---|---|---|---|---|---|
| MMM | 3M | NYSE | Conglomerate | 2.41% | ||
| AXP | American Express | NYSE | Financial services | 3.02% | ||
| AMGN | Amgen | NASDAQ | Biopharmaceutical | 5.48% | ||
| AAPL | Apple | NASDAQ | Information technology | 2.84% | ||
| BA | Boeing | NYSE | Aerospace and defense | 3.36% | ||
| CAT | Caterpillar | NYSE | Construction and mining | 4.52% | ||
| CVX | Chevron | NYSE | Petroleum industry | 3.50% | ||
| CSCO | Cisco | NASDAQ | Information technology | 0.96% | ||
| KO | Coca-Cola | NYSE | Beverages | 1.22% | ||
| DIS | Disney | NYSE | Broadcasting and entertainment | 1.89% | ||
| DOW | Dow | NYSE | Chemical industry | 0.98% | ||
| GS | Goldman Sachs | NYSE | Financial services | 7.36% | ||
| HD | Home Depot | NYSE | Home Improvement | 6.27% | ||
| HON | Honeywell | NASDAQ | Conglomerate | 4.17% | ||
| IBM | IBM | NYSE | Information technology | 2.86% | ||
| INTC | Intel | NASDAQ | Semiconductor industry | 0.57% | ||
| JNJ | Johnson & Johnson | NYSE | Pharmaceutical industry | 3.43% | ||
| JPM | JPMorgan Chase | NYSE | Financial services | 2.61% | ||
| MCD | McDonald’s | NYSE | Food industry | 5.24% | ||
| MRK | Merck | NYSE | Pharmaceutical industry | 2.10% | ||
| MSFT | Microsoft | NASDAQ | Information technology | 4.88% | ||
| NKE | Nike | NYSE | Clothing industry | 2.13% | ||
| PG | Procter & Gamble | NYSE | Fast-moving consumer goods | 2.86% | ||
| CRM | Salesforce | NYSE | Information technology | 2.82% | ||
| TRV | Travelers | NYSE | Insurance | 3.62% | ||
| UNH | UnitedHealth Group | NYSE | Managed health care | 10.29% | ||
| VZ | Verizon | NYSE | Telecommunications industry | 0.73% | ||
| V | Visa | NYSE | Financial services | 4.16% | ||
| WBA | Walgreens Boots Alliance | NASDAQ | Retailing | 0.79% | ||
| WMT | Walmart | NYSE | Retailing | 2.94% |
The components of the DJIA have changed 57 times since its beginning on May 26, 1896. General Electric had the longest continuous presence on the index, beginning in the original index in 1896 and ending in 2018.
Records
- All all-time low Dow Jones value was 28.48, on August 8, 1896.
- All Time high (Closing) was 36799.65, occurred on Tuesday, January 4, 2022
