Stock Market Indices (+)

The Dow Jones Industrial Average (DJIA)

The Dow Jones Industrial (DJIA) is one of the oldest and most important stock market indices in the world. A trading strategy that fails in DJIA will probably fail in any other stock-market index. The Dow Jones Industrial Average or Dow Jones includes 30 companies based in the US and it is considered the most commonly-followed stock market index in the world.

• The P/E ratio in early 2024 for the Dow Jones industrial was x26.61 and for the Dow Jones Transportation Average was x14.67
• The dividend yield in early 2024 was 2.48%
• The stock market capitalization-to-GDP for the US markets is 174.70%

The Dow Jones at a glance:

► Official Dow-Jones Website | ► CME Group Website

History

First calculated on May 26, 1896, the DJIA is the second-oldest US index, after the Dow Jones Transportation Average. Charles Dow created the index and named it after himself. Originally, there were 12 stocks listed on DJIA. General Electric, was the only original stock in the index until recently (removed in 2018). The list of listed stocks has since been broadened. More specifically, the number of stocks rose to 20 in 1916 and to 30 in 1928.

The 12 Initial Dow Stocks

1. American Cotton Oil Company (now part of Unilever)
2. General Electric
3. American Sugar Refining Company (now Domino Foods)
4. National Lead Company (now NL Industries)
5. Chicago Gas Company
6. Distilling & Cattle Feeding Company (now Millennium Chemicals)
7. Laclede Gas Company (now Spire Inc)
8. Tennessee Coal, Iron, and Railroad Company
9. North American Company
10. United States Leather Company
11. American Tobacco Company
12. United States Rubber Company

The composition of the Dow Jones Industrial Average

This is the composition of the Dow Jones industrial. Click on a company name to see the intraday chart.

Other Dow Jones Averages

Other Dow Jones averages include:

• Dow Jones Transportation Average (DJTA), based on 20 stocks
• Dow Jones Utility Average (DJUA), based on 15 utility stocks
• Dow Jones Composite Average, based on stocks of the DJIA, DJTA, and DJUA but also several bond averages

Compare Brokers Trading the Dow Jones Industrial

These are some brokers to trade Dow Jones via CFD contracts: 

Resources:

• The Dow Theory
• Upcoming News: » News Calendar
• DJIA Volatility Index VXD: » www.cboe.com/VXD
• Correlations with the Money Markets: » Bonds & CDS Indices
• Dow Jones Futures on CBOE: » CBOE Short & Long Futures Positions | » CBOE Options Put / Call Ratio

■ Dow Jones Industrial

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