What is the Dow Jones Industrial Average? What are the 30 companies?

Posted on June 6, 2008. Filed under: -- Building Wealth, -- For The Investor In YOU, -- Investing, -- Today's DJIA 30, . More Resources For YOU! | Tags: , , , , , , |


By Molly Malone

The Dow Jones Industrial Average, a popular measuring stick for the NYSE, is a gauge of how the entire U.S. stock market is doing. Also called the DJIA, it consists of 30 large, widely-held public stocks, all representing major industries like technology, finance, and retail.  

All 30 companies are price-weighted (this is where each stock makes up a fraction of the index that is proportional to its price). The Dow Jones’ averages are unique in that they are price-weighted, rather than market-capitalization-weighted. Their component weightings are therefore affected only by changes in the stocks’ prices, in contrast with other indexes’ weightings that are affected by both price changes and changes in the number of shares outstanding. 

It is just one of many popular market indicies.

The 30 stocks are selected by editors at The Wall Street Journal. The editors make frequent changes to those listed on the Dow in order to maintain relevance with the overall current market.  I got my undergrad in Pittsburgh, so let’s take steel for example. As the US economy has moved away from a manufacturing focus, steel companies have fallen off the Dow.  At the same time, other industries and stocks are added over the years as well, like technology and energy for example. Below is a list of the Dow Jones Industrial Average 30 members at close time on June 6th, (date I wrote this). Click here to see who’s listed on the Dow TODAY!! It’s kinda fun to compare the prices and to see those that aren’t on the list any longer, and those that have been added.

Dow 30 Components Chart courtesy of Cnn’s Money web page.
Company Price Change %Change Last Update †
3m Co 69.51 -0.75 -1.07% 6/27 4:00pm
Alcoa Inc 35.38 +0.08 +0.23% 6/27 4:00pm
American Express Company 38.04 -0.85 -2.19% 6/27 4:08pm
American International Group, Inc. 27.75 -0.34 -1.21% 6/27 4:05pm
AT&T Inc. 32.76 -0.71 -2.12% 6/27 4:04pm
Bank of America Corporation 24.59 -0.22 -0.89% 6/27 4:01pm
Boeing Co. 66.92 -1.29 -1.89% 6/27 4:00pm
Caterpillar Inc. 73.75 -0.53 -0.71% 6/27 4:01pm
Chevron Corp 97.80 +0.39 +0.40% 6/27 4:08pm
Citigroup, Inc. 17.25 -0.42 -2.38% 6/27 4:01pm
E.I. du Pont de Nemours and Company 42.69 -0.13 -0.30% 6/27 4:04pm
Exxon Mobil Corp 86.55 +0.14 +0.16% 6/27 4:01pm
General Electric Company 26.26 -0.27 -1.02% 6/27 4:04pm
General Motors Corporation 11.55 +0.12 +1.05% 6/27 4:01pm
Hewlett-Packard Co. 44.58 -0.09 -0.20% 6/27 4:04pm
Intel Corporation 21.49 -0.10 -0.46% 6/27 4:00pm
International Business Machines 120.05 -1.08 -0.89% 6/27 4:01pm
Johnson & Johnson 63.57 -0.69 -1.07% 6/27 4:02pm
JP Morgan & Chase & Co 35.05 -1.27 -3.50% 6/27 4:03pm
McDonald’s Corporation 56.50 +0.05 +0.09% 6/27 4:00pm
Merck & Co., Inc. 36.98 +0.78 +2.15% 6/27 4:01pm
Microsoft Corporation 27.63 -0.12 -0.43% 6/27 4:00pm
Pfizer Inc 17.28 +0.11 +0.64% 6/27 4:02pm
The Coca-Cola Company 51.84 -1.38 -2.59% 6/27 4:03pm
The Home Depot, Inc. 24.02 -0.64 -2.60% 6/27 4:01pm
The Procter & Gamble Company 60.49 -1.76 -2.83% 6/27 4:04pm
United Technologies Corporation 61.15 -1.64 -2.61% 6/27 4:01pm
Verizon Communications 34.28 -0.03 -0.09% 6/27 4:02pm
Wal-Mart Stores, Inc. 56.30 -0.53 -0.93% 6/27 4:06pm
Walt Disney Company (The) (Holding Company)

 

Did you know that the DJIA was first published in The Wall Street Journal in 1896? Yep. It’s initial value was 40.74, and originally consisted of 12 stocks (mostly railroads) instead of 30. GE is the only stock to still remain——although it has dropped on and off over the years. The Dow Jones is currently the most-quoted market indicator in newspapers, on TV and on the Internet.

Advertisements
  • Blog Stats

    • 324,014 hits
  • I'm glad you found my blog. I hope you enjoy it!

  • Flickr Photos

  • Enter your email address to follow this blog and receive notifications of new posts by email.

  • June 2008
    M T W T F S S
        Jul »
     1
    2345678
    9101112131415
    16171819202122
    23242526272829
    30  

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: