Understanding the Dow Jones Industrial Average Created in 1896, the index is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. exchanges, the Dow serves as a key barometer for the overall health of the American economy.
Dow Jones Vs S&P 500 Components: Understanding the Key Differences
The editors look for firms that are leaders in their respective industries and that have demonstrated consistent profitability. The term "price-weighted" means that the stocks with higher prices have a greater impact on the index's movement than those with lower prices, regardless of the company's overall size or market capitalization.
While it represents just a fraction of the thousands of companies trading on U. List of the 30 Dow Components As of the current trading session, the following 30 companies make up the Dow Jones Industrial Average: Company Ticker Sector 3M MMM Industrials American Express AXP Financials Amgen AMGN Healthcare Apple AAPL Technology Boeing BA Industrials Caterpillar CAT Industrials Chevron CVX Energy Cisco CSCO Technology Coca-Cola KO Consumer Staples Disney DIS Communication Services Dow DOW Industrials ExxonMobil XOM Energy Goldman Sachs GS Financials.
Dow Jones Vs S&P 500 Components: Understanding the Key Differences
Because the index contains only 30 stocks, the selection process is rigorous, ensuring that each component contributes to the index's goal of reflecting the performance of blue-chip stocks in America. The components are selected by the editors of The Wall Street Journal, the publisher of the index, and are intended to represent a broad spectrum of the U.
More About What stocks make up the dow
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