What is Dow Jones?

C.I November 25, 2024

 DOW JONES

 

The Dow Jones Industrial Average (DJIA), also known as the Dow 30, is a widely followed stock market index representing 30 large-cap, blue-chip companies in the US.

 

 


 

Here's an overview:

Statistics

·       Market capitalization: Over $10 trillion.

·       Daily trading volume: Average 300 million shares.

·       Historical high: 44,486 (November 2024)

·       Historical low: 41.22 (July 1932).

 

Key Features

Ø  Market capitalization-weighted index: Stocks are weighted based on their market capitalization.

Ø  Price-weighted index: Stock prices, not market capitalization, determine the index value.

Ø  30 constituent companies: Diversified across various sectors.

Ø  Historical significance: Established in 1896, it is one of the oldest stock market indices.

 

Constituent Companies

1. 3M                                                                                                                       

2. American Express

3. Apple

4. Boeing

5. Caterpillar

6. Chevron

7. Cisco Systems

8. Coca-Cola

9. DuPont

10. Goldman Sachs

11. Home Depot

12. IBM

13. Intel

14. Johnson & Johnson

15. JPMorgan Chase

16. McDonald's

17. Merck & Co.

18. Microsoft

19. Nike

20. Procter & Gamble

21. Salesforce

22. The Travelers Companies

23. The Walt Disney Company

24. UnitedHealth Group

25. Verizon Communications

26. Visa

27. Walmart

28. Walgreens Boots Alliance

29. Wells Fargo

30. ExxonMobil

 

Key Indices

o   Dow Jones Industrial Average (DJIA): Tracks the 30 constituent companies.

o   Dow Jones Transportation Average (DJT): Tracks transportation-related companies.

o   Dow Jones Utility Average (DJU): Tracks utility companies.

 

Market Hours (Time frame)

1. Trading hours: 9:30 AM - 4:00 PM ET (Monday to Friday).

2. Pre-market hours: 8:00 AM - 9:30 AM.

3. After-hours trading: 4:00 PM - 8:00 PM.

 

Benefits

1. Diversification: Exposure to various sectors.

2. Liquidity: High trading volume.

3. Historical significance: Long-term performance tracking.

4. Market sentiment indicator: Reflects overall market conditions.

 

Investing Options

1. Individual stocks: Buy/sell shares of constituent companies.

2. ETFs: Track DJIA or sector-specific indices.

3. Mutual funds: Diversified portfolios.

4. Options: Contracts for buying/selling stocks.

 

**Investors can track Dow Jones’s performance, invest in index funds/ETFs, or use it as a benchmark for their investment portfolios.

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