Dow Jones Industrial Average

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Dow Jones Industrial Average

The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. The Dow, as it is called, is a barometer of how shares of the largest US companies are performing. There are hundreds of investment indexes around the world for stocks, bonds, currencies, and commodities.

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.

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.

References in periodicals archive ?
Table 3 is prepared in a similar way to Table 2 except that the 36-56 interval for the Dow Jones Industrial Average is used as the correlation partner for each of the other intervals (instead of the 36-56 interval in the respective Dow Jones Average.
There were days when people would walk into a Fidelity branch office, watch the stock tape for a while, and walk out knowing they had seen the Dow Jones average rise 20 points during their lunch hour.
House of Representatives rejected the original bailout plan Monday, triggering panic selling that sent the Dow Jones average down 777 points -- the biggest-ever single-day point loss in U.
The Dow Jones average of industrial stocks jumped 112 points to close at 9,063.
Panic selling swept across Wall Street Monday as Congress unexpectedly defeated the government's financial bailout package, sending the Dow Jones average down 777 points for the biggest-ever single-day point loss in U.
The only poor year for the market in all these seven years was 1994, when the Dow Jones average rose a measly 2 percent.
Hulbert showed that Granville's investment record was overrated, comparing his numbers to the Dow Jones average or the performance of top-rated market letters.
The Dow Jones average thus recovered to what it was in late February on a closing basis.
From the March 2000 market high, Sir John believes the Dow Jones average could fall as much as 40% and Nasdaq as much as 50% from their all time highs over the next few years.
The Dow Jones average of industrial stocks ended a stomach-churning week on a positive note Friday.
The Dow Jones average accelerated its downswing toward the close in a sharp sell-off.