Dow Jones Dow Jones Average: A 130-Year History of Market Performance

Introduction

The Dow Jones Dow Jones Average (DJIA), also known as the Dow Industrials and the Dow 30, is a stock market index that tracks the performance of 30 of the largest, publicly traded companies in the United States. It is one of the oldest and most well-known stock market indices in the world, and is often used as a bellwether for the overall health of the U.S. stock market.

History of the Dow Jones Dow Jones Average

The Dow Jones Dow Jones Average was created by Charles Dow and Edward Jones in 1896. The index initially tracked the performance of 12 industrial companies, but was expanded to 30 companies in 1928. The DJIA has been through numerous changes over the years, including the addition and removal of companies, and changes to the way the index is calculated, leading to some interesting trends in the data over time. However, the Dow Jones Dow Jones Average has remained one of the most popular and widely followed stock market indices in the world.

Components of the Dow Jones Dow Jones Average

In terms of current numbers, the 30 companies that make up the Dow Jones Dow Jones Average are:

1. 3M Company (MMM)
2. American Express Company (AXP)
3. Apple Inc. (AAPL)
4. Boeing Company (BA)
5. Caterpillar Inc. (CAT)
6. Chevron Corporation (CVX)
7. Cisco Systems, Inc. (CSCO)
8. Coca-Cola Company (KO)
9. Dow Inc. (DOW)
10. Exxon Mobil Corporation (XOM)
11. Goldman Sachs Group, Inc. (GS)
12. Home Depot, Inc. (HD)
13. Honeywell International Inc. (HON)
14. IBM Corporation (IBM)
15. Intel Corporation (INTC)
16. Johnson & Johnson (JNJ)
17. JPMorgan Chase & Co. (JPM)
18. McDonald's Corporation (MCD)
19. Merck & Co., Inc. (MRK)
20. Microsoft Corporation (MSFT)
21. Nike, Inc. (NKE)
22. Pfizer Inc. (PFE)
23. Procter & Gamble Company (PG)
24. Salesforce, Inc. (CRM)
25. The Travelers Companies, Inc. (TRV)
26. UnitedHealth Group Incorporated (UNH)
27. Verizon Communications Inc. (VZ)
28. Visa Inc. (V)
29. Walmart Inc. (WMT)
30. Walt Disney Company (DIS)

Calculation of the Dow Jones Dow Jones Average

The Dow Jones Dow Jones Average is calculated by dividing the total market capitalization of the 30 component companies by the Dow Divisor. The Dow Divisor is a number that is adjusted to keep the index in line with its historical values. The current value of the Dow Divisor is 0.1520732594, leading to the following formula for the DJIA:

**DJIA = (Total Market Capitalization of 30 Component Companies) / 0.1520732594**

Performance of the Dow Jones Dow Jones Average

The Dow Jones Dow Jones Average has had a long and volatile history, with periods of both strong growth and sharp declines. In recent years, the DJIA has reached a number of record highs, including a record closing high of 36,799.65 on January 4, 2023. However, the index has also experienced periods of significant volatility, including a drop of over 12,000 points in March 2020 at the start of the COVID-19 pandemic.

Uses of the Dow Jones Dow Jones Average

The Dow Jones Dow Jones Average is one of the most widely used stock market indices in the world. It is used by investors, analysts, and economists to track the performance of the U.S. stock market, and to make investment decisions. The DJIA is also used as a benchmark for a number of financial products, including mutual funds and exchange-traded funds (ETFs).

Conclusion

The Dow Jones Dow Jones Average is one of the oldest and most well-known stock market indices in the world. It is a valuable tool for investors, analysts, and economists, and provides a snapshot of the performance of the U.S. stock market. While the DJIA has experienced periods of volatility, it has also had periods of strong growth, and remains one of the most popular and widely followed stock market indices in the world.