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Dow Jones Industrial Average


Dow Industrial is the most important index in the WorldThe Dow Jones Industrial Average


The Dow Jones Industrial Average (DJIA) is one of the most important indices in US and in the whole world -along with the S&P 500 and Nasdaq. Dow Jones Industrial follows the price change of 30 US companies -and that is why is often called Dow-30. Originally Dow Industrial was introduced in 1896 by Charles Dow. Charles Dow earlier, in 1884 introduced also Dow Transportation Average, which is the oldest index in the whole world. The Dow Industrial was originally used to measure the stock prices of some US industrial companies holding the largest reserves (raw materials etc) but later expanded its composition to include companies from more industries. From 1928 until nowadays the composition of Dow Jones Industrial has changed 45 times. In 2009 General Motors and Citibank gave their place to Cisco and Travelers. The 30 companies listed on the Dow Jones Industrial are traded either on the New York Exchange (NYSE) or on the NASDAQ.

External Link to Dow Jones Indices Page

Which Companies Participate on The Dow Industrial

In order to calculate DJIA price, the sum of the prices of 30 stocks are used. Each price is divided by a divisor. This divisor which is called as the Dow Divisor is measuring and excluding the effects of stock splits, reverse splits, and other structural changes. Here are the 30 companies that are included on the Dow 30 along with direct links to their official web-pages, symbols, date of original listing and current weighting on Dow Jones Industrial (last change 2011).

No.

Company Name

SYMBOL

Date Listed

Weighting %

1

International Business Machines Corp,

IBM

1979-

10,10%

2

Caterpillar Inc,

CAT

1991

6,38%

3

Chevron Corp,

CVX

2008-

5,95%

4

3M Co,

MMM

1976

5,66%

5

United Technologies Corp,

UTX

1939 (United Aircraft)

5,25%

6

Exxon Mobil Corp,

XOM

1928-(Standard Oil)

5,11%

7

McDonald's Corp,

MCD

1985

4,70%

8

Boeing Co,

BA

1987-

4,45%

9

Procter & Gamble Co,

PG

1932

3,99%

10

Coca-Cola Co,

KO

1987-1987

3,92%

11

Johnson & Johnson

JNJ

1997-

3,74%

12

The Travelers Companies, Inc,

TRV

2009

3,64%

13

Wal-Mart Stores Inc,

WMT

1997-

3,43%

14

E,I, DuPont de Nemours & Co,

DD

1935-

3,37%

15

Hewlett-Packard Co,

HPQ

1997-

3,00%

16

American Express Co,

AXP

1982

2,88%

17

JPMorgan Chase & Co,

JPM

1991- (J,P, Morgan & Co)

2,87%

18

Walt Disney Co,

DIS

1991

2,68%

19

Home Depot Inc,

HD

1999-

2,31%

20

Verizon Communications Inc,

VZ

2004-

2,24%

21

Merck & Co, Inc,

MRK

1979-

2,04%

22

Kraft Foods Inc,

KFT

2008

1,89%

23

AT&T Inc,

T

1999

1,76%

24

Microsoft Corp,

MSFT

1999-

1,68%

25

General Electric Co,

GE

1907-

1,32%

26

Intel Corp,

INTC

1999-

1,34%

27

Pfizer Inc,

PFE

2004-

1,16%

28

Cisco Systems, Inc

CSCO

2009-

1,15%

29

Alcoa Inc,

AA

1959

1,07%

30

Bank of America Corp,

BAC

2008-

0,91%

 

Dow Jones Industrial as The Indicator Of Global Upcoming Political Events

Over the years Dow Jones Industrial has been proved a significant indicator for global political and economical upcoming events. In the Graph Below you may observe the course of Dow Jones Industrial before and during the World War II. At the point (1) Hitler takes power in Germany and the Dow Jones Industrial predicts that a catastrophic war is about to begin. At point (2) Hitler starting to loose the war of Russia (operation Barbarossa) and Dow Jones predicts that the war is coming to an end.

Chart: Dow Jones Industrial during 1933-1946



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