The table below alphabetically lists the companies included in the DJIA as of June 2024. Although the Dow Jones Industrial Average rarely changes, there are occasional additions and deletions. These changes often come in batches and always keep total membership at 30 companies.

Stock market today: Asian shares are mixed after Big Tech losses pull Wall Street lower

US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions. As global markets experience broad-based gains and U.S. indexes approach record highs, investors are navigating through a landscape marked by geopolitical tensions and economic uncertainties. Amidst this backdrop, dividend stocks with attractive yields can offer a reliable income stream, making them an appealing choice for those looking to balance growth with stability in their portfolios.

• The value of the index is calculated as the sum of the stock prices of its component companies, divided by a factor known as the Dow Divisor (currently 0.152).
• Charles Dow created various market averages to more accurately define which way ” industrial stocks” or ” transportation stocks” were headed.
• The Dow posted its all-time high during intraday trading on May 16, 2024, reaching a peak of 40,051.05 points.
• The original companies operated in railroads, cotton, gas, sugar, tobacco, and oil.

How Can I Invest in the Dow Jones?

Critics also believe that factoring only the price of a stock in the calculation does not accurately reflect a company, as much as considering a company’s market cap would. In this manner, a company with a higher stock price but a how to write rfp for software smaller market cap would have more weight than a company with a smaller stock price but a larger market cap, which would poorly reflect the true size of a company. The shares included in it are weighted according to price; the index level represents the average of the shares included in it. Dell shares dropped 12%, while mega-cap giants Nvidia, Meta, and Microsoft all ended lower. Pharmaceutical stocks make great additions to any portfolio in any market environment. A good one promises steady revenue growth thanks to the fact that patients need their medicines — so will continue with them no matter what the economy is doing.

Is the Dow Jones Useful as an Economic Benchmark?

Here’s a table showcasing the historical average percentage returns of the Dow Jones Industrial Average (DJIA) for selected example periods. For a more in-depth look at the Dow Jones historical returns (by year) and overall decade analysis, take a look at our dedicated article on the History of the Dow Jones Index. Dow Jones & Company (acquired in 2007) is currently owned by News Corp, a global media and information services company.

While the Dow Jones Index and the S&P 500 are among the world’s most popular stock market indices, both tend to perform differently at key junctures in the economic cycle. To take an example, the Dow is up 5.8% so far this year, while the S&P 500 is up 17% over the same period. Beyond this, a stock is typically added only if the company “has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors”, according to S&P Global. At a broad level, the DJIA’s composition changes over time based on economic trends and company what is hedging in forex performance. The Dow doesn’t have a lot of specific rules to decide how a stock gains entry to the index.

Long the dominant maker of PC chips, Intel has lost market share to Advanced Micro Devices and has made very little headway in AI. Intel shares have fallen by more than half this year as the company struggles with manufacturing challenges and new competition for its central processors. Gold price reverts toward the weekly low of $2,605 in the early European session on Thanksgiving Thursday, snapping a two-day recovery. The US Dollar (USD) and the US Treasury bond yields breathe a sigh of relief, exerting downward pressure on the Gold price amid holiday-thinned trading conditions.

They included the oldest index, the Dow Jones Transportation Average, which tracks 20 transportation companies, such as airlines and delivery services. Another major index is the Dow Jones Utility Average, which tracks 15 U.S. utility stocks. The DJIA initially launched with just 12 companies based mostly in the industrial sectors. The original companies operated in railroads, cotton, gas, sugar, tobacco, and oil.

The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Investors have the option to invest in the Dow Jones Industrial Average (US 30) through a broker or by taking a self-directed approach. Both methods have pros and cons, and the choice depends on the investor’s preferences, experience, and one good trade: inside the highly competitive world of proprietary trading resources.

But it began cutting rates in September and is widely expected to cut again Thursday at the conclusion of its two-day policy meeting. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. Investors should also ensure that the chosen broker or platform offers access to the specific investment products linked to the Dow Jones that they are interested in, such as ETFs or index funds.