Dow Jones Industrial Average Index Live
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large, publicly-traded companies listed on the New York Stock Exchange (NYSE) and the Nasdaq Stock Market. It is one of the most widely followed stock market indices in the world and is often used as a barometer of the overall health of the U.S. stock market.
How is the Dow Jones Industrial Average calculated?
The DJIA is calculated by dividing the total market capitalization of the 30 companies by the Dow Divisor. The Dow Divisor is a number that is adjusted periodically to ensure that the index remains relatively stable over time. As of 2023, the Dow Divisor is 0.151973575.
What are the components of the Dow Jones Industrial Average?
The 30 companies that make up the DJIA are selected by the editors of The Wall Street Journal. The companies are chosen based on their size, industry, and financial performance. The current components of the DJIA are:
- 3M (MMM)
- American Express (AXP)
- Apple (AAPL)
- Boeing (BA)
- Caterpillar (CAT)
- Chevron (CVX)
- Cisco Systems (CSCO)
- Coca-Cola (KO)
- Dow (DOW)
- DuPont (DD)
- ExxonMobil (XOM)
- Goldman Sachs (GS)
- Home Depot (HD)
- IBM (IBM)
- Intel (INTC)
- Johnson & Johnson (JNJ)
- JPMorgan Chase (JPM)
- McDonald's (MCD)
- Merck (MRK)
- Microsoft (MSFT)
- Nike (NKE)
- Procter & Gamble (PG)
- Salesforce (CRM)
- The Travelers Companies (TRV)
- UnitedHealth Group (UNH)
- Verizon (VZ)
- Visa (V)
- Walgreens Boots Alliance (WBA)
How is the Dow Jones Industrial Average used?
The DJIA is used by investors, traders, and economists to track the performance of the U.S. stock market. It is also used as a benchmark for other stock market indices, such as the S&P 500 and the Nasdaq Composite.
What are the limitations of the Dow Jones Industrial Average?
The DJIA has a number of limitations. First, it is only composed of 30 companies, which means that it does not represent the entire U.S. stock market. Second, the DJIA is price-weighted, which means that companies with higher stock prices have a greater impact on the index than companies with lower stock prices. This can lead to the DJIA being skewed towards large, well-established companies.
