Dow Jones Stocks

Dow Jones Index

Dow Jones Stocks Market

When you talk about appraising a company’s performance, you talk about its market share price. All quoted companies list their shares on stock exchanges like NASDAQ and New York Stock Exchange in the US. Both individual and corporate investors are keen observers of the stock prices to judge the stock performances. Technological and capitalism revolution meant more and more companies listed on stock exchanges, it became difficult for individuals or newspapers to appraise the stock performances precisely. A company’s best performance indicator is its share price on the stock exchange, but merely an MSP cannot help decide forecasting decisions such as Futures contracts. Few companies started appraising big companies listed on different stock exchanges one of the oldest ones to do so is the Dow Jones index.

Dow Jones Industrial Average Stocks

The Dow Jones Industrial Average (DJIA), Dow Jones, or maybe just the Dow, is actually an inventory sector index which measures the inventory functionality of thirty big companies mentioned on inventory switches within America. Even though it’s among the most often used equity indices, several look into the Dow to become an insufficient representation of the complete U.S. inventory industry in comparison with broader promote indices for example the S&P 500 Russell or Index 3000 since it just consists of thirty huge cap makers, isn’t weighted by promote capitalization, as well as doesn’t make use of a weighted arithmetic mean

Dow Jones Index or simply Dow is a stock market index that appraises the stocks of the top 30 companies in the US. The index used by the Dow is called the Dow Jones Industrial Average, which is calculated through the summation of one share price of all thirty companies and divided by the Dow Deviser. That gives a compounded index for these top 30 companies and is a widely used measure as stock markets’ performance indicator. The Dow divisor was originally the number of stocks, but that resulted only in the arithmetic mean price of the shares. The Current Dow Divisor is .01458, which gives a better and controlled index figure than a mere average share price of the companies.

The top 30 companies appraised by the Dow are mostly listed in the New York Stock Exchange NYSE with industry -leading names such as the American Express, The Coca-Cola Company, Boeing, etc. Few of these top 30 are listed on the NASDAQ Exchange such as Apple Inc., Microsoft, and Intel, etc. The DJIA index is the most widely used industrial performance indicator in the US market along with the Standard and Poor’s 500 or simply S&P 500.

Leading Stock Market indexes in no particular order are:

  • The Dow Jones Industrial Average or DJIA
  • S&P 500
  • The NASDAQ Composite
  • Russell 3000

The DJIA and S&P 500 are the most widely used Stock market indexes in the US, where the DJIA uses the weighted Share Price method for 30 companies and the S&P 500 uses the arithmetic mean for the 500 companies listed in the US stock markets. The DJIA uses a Dow Divisor which makes the Stock Prices changes reflect precisely with their market performance in contrast to other Stock Indexes which merely use average share prices.

However, the criticism on the DJIA is that it only evaluates “Blue Chip” or “big Guns” companies’ stocks that are industry leaders and their performance indicators cannot be applied in general to other companies in the US. The S&P 500 uses a stock index of 500 listed companies, the Russell 3000 uses a Stock index of 3000 listed companies in the US stock exchanges which gives a wider range of analysis and provides a realistic stock market indicator.

Dow Jones Stocks List

Dow thirty Definition: The Dow thirty describes the thirty blue chip firms that form the Dow Jones Industrial Average. The Dow Jones Industrial Average is currently taken care of by S&P Dow Jones Indices and also consequently, the thirty Dow stocks now are selected in the 500 securities which are actually in the S&P 500 except for commuter routes as well as utilities stocks (commuter routes and utilities stocks are actually tracked with the Dow Jones Transportation Average and also the Dow Jones Utility Average respectively).

What are the 30 Dow Jones Stocks List?

Dow Jones Industrial Average are: 3M, American Express, Apple, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, Disney, Dow, ExxonMobil, Goldman Sachs, Home Depot, IBM, Intel, Johnson & Johnson, JP Morgan Chase, McDonald’s, Merck, Microsoft, Nike, Pfizer, Procter & Gamble, Travelers, Raytheon Technologies, Unitedhealth, Verizon, Visa, Walgreens, and Walmart.

 

Dow Jones Today

Investments in Dow Jones

The DJIA index is different from the Dow Jones Company that is owned by the News Corporation the Wall Street journal publishers. The DJIA is neither a typical company with share prices nor it is an exchange itself like NASDAQ. Wealthy investors and Institutional investors, however, can make investment contracts with the DJIA through index funds. These Index Funds can be in the form of “Futures”, ‘Options”, or “Exchange Traded Funds” contract. These Mutual and Exchange traded funds are offered by institutional investors through investment houses such as NASDAQ, NYSE, and DJIA to corporate investors.

The Exchange trade fund traded at the DJIA is called the DIA ETF that comprises of the 30 listed companies the Dow evaluates. The fund is also heavily owned by these top guns and hence the performance of the ETF is directly correlated to these companies’ performance. Many of these top 30 Blue chips are also part of the S&P’s 500, New York Stock Exchange, and Russell 100 indexes and ETFs, so the correlation of these indexes is also direct. The current return rate for the DIA funds is a 2.56% dividend Yield.

 

Conclusion

In conclusion, the DJIA is historically one of the largest Stock Market Index along with S&P’s 500 or NASDAQ Composite. It takes the top 30 industry leaders as their components and uses the weighted average price method of the Stocks for these companies mostly listed at the New York Stock Exchange and a few of them at the NASDAQ Exchange.