Linear graph of the DJIA from 1901 until today

Logarithmic graph of the DJIA from 1901 until today

The Dow Jones Industrial Average (NYSE: DJI, also called the DJIA, Dow 30, or informally the Dow industrials, the Dow Jones or The Dow) is one of several stock market indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. Dow compiled the index as a way to gauge the performance of the industrial component of America's stock markets. It is the oldest continuing U.S. market index, aside from the Dow Jones Transportation Average, which Dow also created. Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... A logarithmic scale is a scale of measurement that uses the logarithm of a physical quantity instead of the quantity itself. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... A comparison of three major stock indices: the NASDAQ Composite, Dow Jones Industrial Average, and S&P 500. ... The Wall Street Journal (WSJ) is an influential international daily newspaper published in New York City, New York with a worldwide average daily circulation of more than 2. ... Dow Jones redirects here. ... Charles Henry Dow (November 6, 1851 – December 4, 1902) was an American journalist who co-founded Dow Jones & Company with Edward Jones and Charles Bergstresser. ... A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately. ...

Today, the average consists of 30 of the largest and most widely held public companies in the United States. The "industrial" portion of the name is largely historical — many of the 30 modern components have little to do with heavy industry. To compensate for the effects of stock splits and other adjustments, it is currently a scaled average, not the actual average of the prices of its component stocks — the sum of the component prices is divided by a divisor, which changes over time, to generate the value of the index. Stock split refers to a corporate action that increases the shares in a public company. ... In mathematics and statistics, the arithmetic mean (or simply the mean) of a list of numbers is the sum of all the members of the list divided by the number of items in the list. ... In mathematics, a divisor of an integer n, also called a factor of n, is an integer which evenly divides n without leaving a remainder. ...

History

The Dow fell 22.61% on Black Monday (1987). Two days later it rose 10.15%.

The Dow fell 14.3% after the September 11, 2001 attacks. Exchanges were closed between September 10th and September 17th.

First published on May 26, 1896, the DJIA represented the average of twelve stocks from various important American industries. Of those original twelve, only General Electric remains part of the average. The other eleven were: Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... DJIA (19 July 1987 through 19 January 1988) FTSE 100 Index (19 July 1987 through 19 January 1988) Black Monday is the name given to Monday, October 19, 1987, when the Dow Jones Industrial Average (DJIA) fell dramatically, and on which similar enormous drops occurred across the world. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11—pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly... May 26 is the 146th day of the year (147th in leap years) in the Gregorian calendar. ... Year 1896 (MDCCCXCVI) was a leap year starting on Wednesday (link will display calendar). ... GE redirects here. ...

• American Cotton Oil Company, a predecessor of Bestfoods, now part of Unilever
• American Sugar Company, now Amstar Holdings
• American Tobacco Company, broken up in 1911
• Chicago Gas Company, bought by Peoples Gas Light & Coke Co. in 1897 (now Integrys Energy Group, Inc.)
• Distilling & Cattle Feeding Company, now Millennium Chemicals, a division of Lyondell Chemical Company
• Laclede Gas Light Company, still in operation as The Laclede Group
• National Lead Company, now NL Industries
• North American Company, (Edison) electric company broken up in the 1950s
• Tennessee Coal, Iron and Railroad Company, bought by U.S. Steel in 1907
• U.S. Leather Company, dissolved 1952
• United States Rubber Company, changed its name to Uniroyal in 1967, bought by Michelin in 1990

When it was first published, the index stood at 40.94. It was computed as a direct average, by first adding up stock prices of its components and dividing by the number of stocks. Many of the biggest percentage price moves in The Dow occurred early in its history, as the nascent industrial economy matured. ... Unilever (Euronext: UNA, LSE: ULVR, NYSE: UN) is an Anglo-Dutch company that owns many of the worlds consumer product brands in foods, beverages, cleaning agents and personal care products. ... The American Tobacco Company was founded in 1890 by J. B. Duke as a merger between a number of tobacco manufacturers including Allen and Ginter. ... Integrys Energy Group, Inc. ... Millennium Chemicals Inc is a U.S. based chemical company. ... Lyondell Chemical Company is based in Houston, Texas. ... The North American Company was a former holding company headquartered in Chicago, Illinois. ... The United States Steel Corporation NYSE: X is an integrated steel producer with major production operations in the United States and Central Europe. ... The United States Rubber Company was a rubber manufacturer founded by Charles R. Flint in 1892. ... Michelin (full name: Compagnie Générale des Établissements Michelin) (Euronext: ML) based in Clermont-Ferrand in the Auvergne région of France, is primarily a tire manufacturer. ...

• The index hit its all-time low of 28.48 during the summer of 1896.
• The largest one-day percentage drop in the history of the Dow occurred on December 12, 1914, 24.39%, after a multi-month NYSE hiatus brought on by World War I.

In 1916, the number of stocks in the DJIA was increased to twenty, and finally to thirty in 1928, near the height of the "roaring 1920s" bull market. The crash of 1929 and the ensuing Great Depression returned the average to its starting point, almost 90% below its peak, by July 8, 1932. The highs of September 3, 1929 would not be surpassed until 1954. December 12 is the 346th day (347th in leap years) of the year in the Gregorian calendar, with 19 days remaining. ... 1914 (MCMXIV) was a common year starting on Thursday (see link for calendar). ... New York Stock Exchange (June 2003) The New York Stock Exchange (NYSE) is one of the largest stock exchanges in the world. ... “The Great War ” redirects here. ... A bull market is a prolonged period of time when prices are rising in a financial market faster than their historical average. ... The Great Depression was a global economic slump that began in 1929 and bottomed in 1933. ... The Great Depression was a time of economic down turn, which started after the stock market crash on October 29, 1929, known as Black Tuesday. ... July 8 is the 189th day of the year (190th in leap years) in the Gregorian calendar. ... Year 1932 (MCMXXXII) was a leap year starting on Friday (the link will take you to a full 1932 calendar). ... September 3 is the 246th day of the year (247th in leap years). ... 1929 (MCMXXIX) was a common year starting on Tuesday (link will take you to calendar). ...

• The largest one-day percentage gain in the index, 15.34%, happened on March 15, 1933, in the depths of the 1930s bear market.
• The post-World War II bull market, which brought the market well above its 1920s highs, lasted until 1966.
• On November 14, 1972 the average closed above 1,000 (1,003.16) for the first time, in the midst of a lengthy bear market.

The 1980s and especially the 1990s saw a very rapid increase in the average, though severe corrections did occur along the way. March 15 is the 74th day of the year in the Gregorian calendar (75th in leap years). ... 1933 (MCMXXXIII) was a common year starting on Sunday. ... A bear market is a prolonged period of time when prices are falling in a financial market. ... Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki Tōjō Casualties Military dead: 17,000,000 Civilian dead: 33,000... November 14 is the 318th day of the year (319th in leap years) in the Gregorian Calendar, with 47 days remaining. ... 1972 (MCMLXXII) was a leap year starting on Saturday. ...

• The largest one-day percentage drop since 1914 occurred on "Black Monday", October 19, 1987, when the average fell 22.61%.
• The largest one-day percentage gain since the 1930s, 10.15%, occurred two days later on Wednesday, October 21, bringing the Dow back above 2,000 and in line for a yearly gain.
• On November 21, 1995 the DJIA closed above 5,000 (5,023.55) for the first time.
• On March 29, 1999, the average closed at 10,006.78, its first close above the 10,000 mark.
• On May 3, 1999, the Dow closed at 11,014.70, its first close above 11,000.

The uncertainty of the early 2000s brought a significant bear market, and whether it has ended or simply gone into hibernation is an ongoing subject of debate. DJIA (19 July 1987 through 19 January 1988) FTSE 100 Index (19 July 1987 through 19 January 1988) Black Monday is the name given to Monday, October 19, 1987, when the Dow Jones Industrial Average (DJIA) fell dramatically, and on which similar enormous drops occurred across the world. ... October 19 is the 292nd day of the year (293rd in leap years) in the Gregorian calendar. ... 1987 (MCMLXXXVII) was a common year starting on Thursday of the Gregorian calendar. ... October 21 is the 294th day of the year (295th in leap years) in the Gregorian calendar, with 71 days remaining. ... November 21 is the 325th day of the year (326th in leap years) in the Gregorian calendar. ... 1995 (MCMXCV) was a common year starting on Sunday of the Gregorian calendar. ... March 29 is the 88th day of the year in the Gregorian calendar (89th in leap years). ... Year 1999 (MCMXCIX) was a common year starting on Friday (link will display full 1999 Gregorian calendar). ... May 3 is the 123rd day of the year in the Gregorian calendar (124th in leap years). ... Year 1999 (MCMXCIX) was a common year starting on Friday (link will display full 1999 Gregorian calendar). ... A bear market is a prolonged period of time when prices are falling in a financial market. ...

• On January 14, 2000, the DJIA reached a record high of 11,750.28 in trading before settling at a record closing price of 11,722.98; these two records would not be broken until October 3, 2006.
• The largest one-day point gain in the Dow, an advance of 499.19, or 4.93%, occurred on March 16, 2000, as the broader market approached its top.
• The largest one-day point drop in DJIA history occurred on September 17, 2001, the first day of trading after the September 11, 2001 attacks, when the Dow fell 684.81 points, or 7.1%. By the end of that week, the Dow had fallen 1,369.70 points, or 14.3%. A recovery attempt allowed the average to close the year above 10,000.
• By mid-2002, the average had returned to its 1998 level of 8,000.
• On October 9, 2002, the DJIA bottomed out at 7,286.27 (intra-day low 7,197.49), its lowest close since October 1997.
• By the end of 2003, the Dow returned to the 10,000 level.
• On January 9, 2006 the average broke the 11,000 barrier for the first time since June 2001, closing at 11,011.90.
• In October 2006, four years after its bear market low, the DJIA set fresh record theoretical, intra-day, daily close, weekly, and monthly highs for the first time in almost seven years, closing above 12,000 for the first time on the 19th anniversary of Black Monday.
• On February 27, 2007, the Dow Jones Industrial Average fell 415.30 points, its biggest point drop since 2001, to close at 12,216.96 points. This move confirmed a correction that eventually reached below the 12,000 level.
• On April 18, 2007, the Dow completed its recovery of losses from the correction to close at a new record high above 12,800 points. One week later, on April 25, 2007, the Dow passed 13,000 for the first time in trading, and closed above the milestone, at 13,089.89. [3]

Note: For current record highs, please see Closing Milestones of the Dow Jones Industrial Average. January 14 is the 14th day of the year in the Gregorian calendar. ... 2000 (MM) was a leap year starting on Saturday of the Gregorian calendar. ... October 3 is the 276th day of the year (277th in leap years) in the Gregorian calendar. ... For the Manfred Mann album, see 2006 (album). ... March 16 is the 75th day of the year (76th in leap years) in the Gregorian calendar. ... 2000 (MM) was a leap year starting on Saturday of the Gregorian calendar. ... September 17 is the 260th day of the year (261st in leap years). ... Year 2001 (MMI) was a common year starting on Monday of the Gregorian calendar. ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11—pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly... October 9 is the 282nd day of the year (283rd in leap years) in the Gregorian calendar. ... For album titles with the same name, see 2002 (album). ... January 9 is the 9th day of the year in the Gregorian calendar. ... For the Manfred Mann album, see 2006 (album). ... DJIA (19 July 1987 through 19 January 1988) FTSE 100 Index (19 July 1987 through 19 January 1988) Black Monday is the name given to Monday, October 19, 1987, when the Dow Jones Industrial Average (DJIA) fell dramatically, and on which similar enormous drops occurred across the world. ... February 27 is the 58th day of the year in the Gregorian calendar. ... 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... April 18 is the 108th day of the year (109th in leap years) in the Gregorian calendar. ... April 25 is the 115th day of the year in the Gregorian calendar (116th in leap years). ... This article is a summary of the closing milestones of the Dow Jones Industrial Average, the best-known stock market index in the world. ...

Criticism

The DJIA began May 26, 1896 with only 12 companies. One can only guess what the DJIA would be today if this list had not been constantly adjusted. Even with the current inclusion of only 30 stocks, some argue the DJIA cannot function as an index of overall market performance even though it is the most cited and most widely recognized of the stock market indices. Some have further argued that the DJIA's arbitrary choice of companies combined with an arbitrary weighting system assigned to each doesn't measure the performance of the equities market; it attempts to mimic it.

Additionally, the DJIA is criticized for being a price-weighted average, which gives relatively higher-priced stocks more influence over the average than their lower-priced counterparts. For example, a $1 increase in a lower-priced stock can be negated by a $1 decrease in a much higher-priced stock, even though the first stock experienced a larger percentage change. Many critics of the DJIA recommend the float-adjusted market-value weighted S&P 500 or the Dow Jones Wilshire 5000, the latter of which includes all U.S. securities with readily available prices, as better indicators of the U.S. market. This article needs to be wikified. ... The S&P 500 is an index containing the stocks of 500 Large-Cap corporations, most of which are American. ... The Dow Jones Wilshire 5000 Total Stock Market Index, also known as the Dow Jones Wilshire 5000 Composite Index or simply the Wilshire 5000 is a broad base stock market index often used to represent the entire United States stock market. ...

Another issue with the Dow is that not all 30 components open at the same time in the morning. Only a few components open at the start and the posted opening price of the Dow is determined by the price of those few components that open first and the previous day's closing price of the remaining components that haven't opened yet; therefore, the posted opening price on the Dow will always be close to the previous day's closing price (which can be observed by looking at Dow price history) and will never accurately reflect the true opening prices of all its components. Thus, in terms of candlestick charting theory, the Dow's posted opening price cannot be used in determining the condition of the market. A candlestick chart is a style of bar-chart used primarily to describe price movements of an equity over time. ...

Beginning at around 2pm EST on February 27, 2007, the DJIA suffered a serious technical failure and began to experience a delay as the system that calculates and distributes the index bogged down under extremely heavy trading volume. Over the next hour, the reported value for the index diverged sharply from its true value. At approximately 3pm, a backup system was brought online to correct the problem, which resulted in a near-instantaneous drop of 200 points. Although the index's value was correct after the switch, the apparent rapidity of the drop, coupled with poor communications, resulted in significant market confusion.^[1] The SEC is investigating the issue.^[2] Metronome, a public art installation showing the time in New York City The Eastern Time Zone (ET) of the Western Hemisphere falls mostly along the east coast of Northern America and the west coast of South America. ... February 27 is the 58th day of the year in the Gregorian calendar. ... 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era. ... “Securities and Exchange Commission” redirects here. ...

Components

The individual components of the DJIA are occasionally changed as market conditions warrant. They are selected by the editors of The Wall Street Journal. When companies are replaced, the scale factor used to calculate the index is also adjusted so that the value of the average is not directly affected by the change.

On November 1, 1999, Chevron, Goodyear Tire and Rubber Company, Sears Roebuck, and Union Carbide were removed from the DJIA and replaced by Intel, Microsoft, Home Depot, and SBC Communications. Intel and Microsoft became the first two companies traded on the NASDAQ exchange to be listed in the DJIA. On April 8, 2004, another change occurred as International Paper, AT&T, and Eastman Kodak were replaced with Pfizer, Verizon, and AIG. On December 1, 2005 AT&T's original T symbol returned to the DJIA as a result of the SBC Communications and AT&T merger. November 1 is the 305th day of the year (306th in leap years) in the Gregorian calendar, with 60 days remaining. ... Year 1999 (MCMXCIX) was a common year starting on Friday (link will display full 1999 Gregorian calendar). ... Chevron Corporation (NYSE: CVX) is one of the worlds largest global energy companies. ... Goodyear Tire and Rubber Company was founded in 1898 by Frank Seiberling. ... This article refers to Sears as it existed prior to its merger with Kmart. ... This article or section is incomplete and may require expansion and/or cleanup. ... Intel Corporation (NASDAQ: INTC, SEHK: 4335), founded in 1968 as Integrated Electronics Corporation, is an American multinational corporation that is best known for designing and manufacturing microprocessors and specialized integrated circuits. ... Microsoft Corporation, (NASDAQ: MSFT, HKSE: 4338) is a multinational computer technology corporation with global annual revenue of US$44. ... The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products. ... SBC Communications NYSE: SBC is an American telecommunications company based in San Antonio, Texas. ... NASDAQ in Times Square, New York City. ... April 8 is the 98th day of the year in the Gregorian calendar (99th in leap years). ... shelby was here 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... International Paper (NYSE: IP) is an American pulp and paper company, the largest pulp and paper company in the world and the largest private owner of timberland in the United States. ... AT&T Inc. ... Eastman Kodak Company (NYSE: EK) is an American multinational public company producing photographic materials and equipment. ... Pfizer, Incorporated (NYSE: PFE) (pronounced faɪzəɹ or faɪzÉ™), is the worlds largest pharmaceutical company. ... This article or section should include material from Bell Atlantic This article or section should include material from GTE Verizon Communications (NYSE: VZ) is a local exchange telephone company formed by the merger of Bell Atlantic, a former Bell Operating Company, and GTE, which was the largest independant local exchange... American International Group, Inc. ... December 1 is the 335th (in leap years the 336th) day of the year in the Gregorian calendar. ... 2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ... AT&T Inc. ... SBC Communications NYSE: SBC is an American telecommunications company based in San Antonio, Texas. ... AT&T Inc. ...

The Dow Jones Industrial Average consists of the following 30 companies:^[3]

3M Company (NYSE: MMM; formerly Minnesota Mining and Manufacturing Company until 2002) is an American corporation with a worldwide presence that produces over 55,000 products, including adhesives, abrasives, laminates, passive fire protection, dental products, electrical materials, electronic circuits, optical films and supply chain management software. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... This article or section does not cite its references or sources. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Aluminum is a soft and lightweight metal with a dull silvery appearance, due to a thin layer of oxidation that forms quickly when it is exposed to air. ... Altria Group, Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... This article is about the product manufactured from Tobacco plants (Nicotiana spp. ... American Express (NYSE: AXP), sometimes known as AmEx or Amex, is a diversified global financial services company, headquartered in New York City. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... American International Group, Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... AT&T Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Telecommunication is the extension of communication over a distance. ... The Boeing Company (NYSE: BA, TYO: 7661 ) is an aerospace and defense corporation headquartered in Chicago, Illinois. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Caterpillar Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Citigroup Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Banks is a surname, and may refer to: Aidan Banks, bass guitarist Alan Banks, fictional character from Peter Robinson Ant Banks, rapper Antonio Banks, American wrestler Bill Banks, wrestling worker Brad Banks, American football player Briana Banks, American porn actress Carl Banks, American football player Carli Banks, American model Chip... The Coca-Cola Company (NYSE: KO) is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The word drink is primarily a verb, meaning to ingest liquids, see Drinking. ... Dupont, DuPont, Du Pont, or du Pont may refer to: // E.I. du Pont de Nemours and Company, the worlds third largest chemical company Du Pont Motors Gilbert Dupont, a French stock brokerage part of retail banking network Crédit du Nord ST Dupont, a French manufacturer of fine... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, a suburb of Dallas, USA, is the largest publicly traded integrated oil and gas company in the world, formed on November 30, 1999, by the merger of Exxon and Mobil. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... GE redirects here. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... General Motors Corporation, also known as GM or GMC is the worlds 2nd largest auto company by sales revenue (behind Toyota[1]) and was the worlds largest automaker by unit sales from 1931 to 2006, longer than any other automaker. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Hewlett-Packard Company (NYSE: HPQ), commonly known as HP, is a very large, global company headquartered in Palo Alto, California, United States. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Honeywell Heating Specialties Company Stock Certificate dated 1924 signed by Mark C. Honeywell - courtesy of Scripophily. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Intel Corporation (NASDAQ: INTC; SEHK: 4335) is the worlds largest semiconductor company and the inventor of the x86 series of microprocessors, the processors found in many personal computers. ... NASDAQ in Times Square, New York City. ... International Business Machines Corporation (known as IBM or Big Blue; NYSE: IBM) is a multinational computer technology and consulting corporation headquartered in Armonk, New York, USA. The company is one of the few information technology companies with a continuous history dating back to the 19th century. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Johnson & Johnson (NYSE: JNJ) is a global American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The following is a list of the top 50 pharmaceutical and biotech companies ranked by healthcare revenue. ... JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Banks is a surname, and may refer to: Aidan Banks, bass guitarist Alan Banks, fictional character from Peter Robinson Ant Banks, rapper Antonio Banks, American wrestler Bill Banks, wrestling worker Brad Banks, American football player Briana Banks, American porn actress Carl Banks, American football player Carli Banks, American model Chip... McDonalds Corporation (NYSE: MCD) is the worlds largest chain of fast-food restaurants, primarily selling hamburgers, chicken, french fries, milkshakes and soft drinks. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... It has been suggested that Rosetta Biosoftware be merged into this article or section. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The following is a list of the top 50 pharmaceutical and biotech companies ranked by healthcare revenue. ... Microsoft Corporation, (NASDAQ: MSFT, HKSE: 4338) is a multinational computer technology corporation with global annual revenue of US$44. ... NASDAQ in Times Square, New York City. ... Computer software (or simply software) refers to one or more computer programs and data held in the storage of a computer for some purpose. ... Pfizer, Incorporated (NYSE: PFE) (pronounced faɪzəɹ or faɪzÉ™), is the worlds largest pharmaceutical company. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The following is a list of the top 50 pharmaceutical and biotech companies ranked by healthcare revenue. ... Procter & Gamble Co. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... United Technologies Corporation (UTC) (NYSE: UTX) is a multinational corporation based in Hartford, Connecticut, USA, and is the 20th largest U.S. manufacturer. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Verizon!: Verizon redirects here: this article is about the corporation; see also Verizon Wireless, Verizon Online DSL and Verizon FiOS. Verizon Communications (NYSE: VZ) is an American broadband and telecommunications company and a component of the Dow 30. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... Telecommunication is the extension of communication over a distance. ... Wal-Mart Stores, Inc. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Walt Disney Company (NYSE: DIS) is one of the largest media and entertainment corporations in the world. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ...

Calculation

To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a divisor. The divisor is adjusted in case of splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. The initial divisor was the number of component companies, so that the DJIA was at first a simple arithmetic average; the present divisor, after many adjustments, is less than one (meaning the index is actually larger than the sum of the prices of the components). That is: The Dow Jones Industrial Average (DJIA) is a price-weighted index that is calculated by dividing the sum of the prices of the 30 component stocks (Dow Jones Industrial Average components) by a number called the index divisor (DJIA Divisor). ...

where p are the prices of the component stocks and d is the Dow Divisor.

Events like stock splits or changes in the list of the companies composing the index alter the sum of the component prices. In these cases, in order to avoid discontinuity in the index, the Dow divisor is updated so that the quotations right before and after the event coincide:

Weights

Because the DJIA is an average of stock prices, it is more strongly affected by relative changes in performance of high-priced stocks than by lower-priced ones. For example, a 100% price increase of a $1 stock would have the same effect on the index as a 1% price increase of a $100 stock, even if both companies had the same market capitalization. In this sense higher-priced stocks have a greater "weight" in the index. A list of the effective weight of each component is published daily [4] by Dow Jones, (although the weights change whenever the prices of the component stocks change). The weights are simply proportional to the stock prices, and are not used in calculating the DJIA. Market capitalization, often abbreviated to market cap, is a measurement of corporate size that refers to the current stock price times the number of outstanding shares. ...

See also

• Closing milestones of the Dow Jones Industrial Average
• Dow Theory
• Dowism
• New York Stock Exchange
• DJIA divisor

This article is a summary of the closing milestones of the Dow Jones Industrial Average, the best-known stock market index in the world. ... Dow Theory is a theory on stock price movements that provides a basis for technical analysis. ... Dowism can be both a misspelling (sometimes intentional) and a humorous term. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Dow Jones Industrial Average (DJIA) is a price-weighted index that is calculated by dividing the sum of the prices of the 30 component stocks (Dow Jones Industrial Average components) by a number called the index divisor (DJIA Divisor). ...

References

External links

• Google Finance page for DJIA
• Yahoo! Finance page for DJIA
• Dow Jones & Company Website
• History of Stock Market Indexes
• The Dow Jones Industrial Average Celebrates 110 Years
• Dow Jones Industrial Average (DJIA) and USA Corporate Profits Research
• Seeking Alpha coverage of the Dow ETF
• Industry Classification Benchmark for Dow Jones Indexes (United States) and FTSE Indexes (United Kingdom) (pdf)
• Cap. weighted DJIA calculation

Performance

• Chart of DJIA performance (1928-present) - Linear scale
• Chart of DJIA performance (1928-present) - Logarithmic scale
• Listing of quotes for all DJIA components