How is the Dow Jones industrial average calculated?

Interactive chart of the Dow Jones Industrial Average (DJIA) stock market index for the last 100 years. Historical data is inflation-adjusted using the headline CPI and each data point represents the month-end closing value. The current month is updated on an hourly basis with today’s latest value.

What was the relationship between the Dow and the economy?

The period between 1966 and 1982 offers the best example. In 16 years, the Dow fell 18%, and yet the production of the economy actually increased by around 450%! On the other hand, in the 18 years to 2000 the Dow rose by around 1300%, whilst GDP grew by 280%.

How much is the Dow up for the day?

Dow futures climb 800 points or 3.6%. Stocks are trading at their highs of the day. The Dow is up 1,090 points or 5.2%. Stock futures jump as investors monitor coronavirus case counts. Dow futures are up 800 points or 3.8%. Stock futures rise as investors monitor coronavirus case counts. Dow futures are up 288 points or 1.4%.

When did UnitedHealth Group join the Dow Jones industrial average?

On June 8, 2009, The Travelers Companies and Cisco Systems replaced Motors Liquidation Company (formerly General Motors) and Citigroup. Cisco became the third company traded on the NASDAQ to be part of the Dow. On September 24, 2012, UnitedHealth Group replaced Kraft Foods Inc. following Kraft’s split into Mondelez International and Kraft Foods.

Is the Dow Jones industrial average the same as the Dow?

The Dow “The Dow” actually refers to the Dow Jones Industrial Average (DJIA), an important index that many people pay attention to in order to get an indication of how well the overall stock market is performing.

What was the Dow Jones divisor value in 2017?

At the time of updating this article (December 2017), the Dow Jones divisor value was 0.14523396877348. The divisor value has its own significance. For every $ change in the price of underlying constituent stocks, the index value moves by an inverse value.

How does a stock split affect the Dow Jones?

Dow lived in times when stock splits and stock dividends weren’t commonplace, so he didn’t foresee how these corporate actions would affect the average. For example, if a company trading at $100 implements a 2-for-1 split, the number of its shares doubles, and the price of each share becomes $50.

How is the Dow Jones different from the S & P 500?

The index is used by the media as a barometer of the broader stock market and the economy as a whole. The Dow’s scope is more limited than the broader S&P 500 because it is composed of only 30 out of thousands of stocks. The index is price-weighted and does not account for changes in market capitalization as is the case with other popular indices.