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DJIA

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DJIA

Dow Jones Industrial Average
A stock market index founded in 1896 by Charles Dow tracking 30 companies in various industries thought to be representative of the American economy. It is a price-weighted index, meaning that stocks with higher prices per share affect the average more. It also scales its averages to account for stock splits and other changes in the companies tracked. All stocks tracked in the DJIA are traded on either the New York Stock Exchange or NASDAQ. It is considered the premier securities index in the United States.

DJIA

Dow Jones Industrial Average (DJIA). The Dow Jones Industrial Average (DJIA), sometimes referred to as the Dow, is the best-known and most widely followed market indicator in the world. It tracks the performance of 30 blue chip US stocks.

Though it is called an average, it actually functions more like an index. The DJIA is quoted in points, not dollars. It's computed by totaling the weighted prices of the 30 stocks and dividing by a number that is regularly adjusted for stock splits, spin-offs, and other changes in the stocks being tracked.

The companies that make up the DJIA are changed from time to time. For example, in 1999 Microsoft, Intel, SBC Communications, and Home Depot were added and four other companies were dropped. The changes are widely interpreted as a reflection of the emerging or declining impact of a specific company or type of company on the economy as a whole.


Dow Jones Industrial Average

What Does Dow Jones Industrial Average Mean?

The Dow Jones Industrial Average is a price-weighted average of 30 stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow in 1896.

Investopedia explains Dow Jones Industrial Average

Often referred to as “the Dow,” the DJIA is the oldest and most watched index in the world. The DJIA includes companies such as General Electric, Disney, Exxon, and Microsoft. When the TV networks say that “the market is up today,” they generally are referring to the Dow.

Related Terms:
Benchmark
Nasdaq
New York Stock ExchangeNYSE
Standard & Poor's 500 IndexS&P 500
Stock Market



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Here's his simple conclusion: The entire rally in the DJIA from 2003 to the peak in 2008 was actually a continuous decline when priced in gold.
Summary: The EUR/USD continues to see risk sentiment have the greatest influence on price action as movement in the DJIA is explaining 41% of overall direction.
The limit prior to the open is 5%, or 60 points, on the S&P 500 futures, 550 points on the DJIA futures, and 85 points on Nasdaq futures.
 
 
 
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