Dow Jones Industrial Average (DJI): Comprehensive Guide
Overview
The Dow Jones Industrial Average (DJI) is a stock market index that tracks the performance of 30 of the largest and most widely traded publicly owned companies in the United States. It is one of the most well-known and widely followed stock market indices globally.
History
The DJI was created in 1896 by Charles Dow and Edward Jones, the founders of the Dow Jones & Company financial news agency. The index initially included 12 companies but has been expanded and modified over the years to include a more representative sample of the U.S. economy.
Current Constituents
The current constituents of the DJI are:
- 3M Company (MMM)
- American Express Company (AXP)
- Apple Inc. (AAPL)
- Boeing Company (BA)
- Caterpillar Inc. (CAT)
- Chevron Corporation (CVX)
- Cisco Systems, Inc. (CSCO)
- Coca-Cola Company (KO)
- Dow Inc. (DOW)
- DuPont de Nemours, Inc. (DD)
- Exxon Mobil Corporation (XOM)
- Goldman Sachs Group, Inc. (GS)
- Home Depot, Inc. (HD)
- Honeywell International Inc. (HON)
- IBM Corporation (IBM)
- Intel Corporation (INTC)
- Johnson & Johnson (JNJ)
- JPMorgan Chase & Co. (JPM)
- McDonald's Corporation (MCD)
- Merck & Co., Inc. (MRK)
- Microsoft Corporation (MSFT)
- Nike, Inc. (NKE)
- Procter & Gamble Company (PG)
- Salesforce, Inc. (CRM)
- The Travelers Companies, Inc. (TRV)
- UnitedHealth Group Inc. (UNH)
- Verizon Communications Inc. (VZ)
- Visa Inc. (V)
- Walmart Inc. (WMT)
Calculation
The DJI is calculated by summing the share prices of the 30 constituent companies and then dividing by a divisor. The divisor is adjusted whenever a new company is added or removed from the index or when a company issues a stock split.
Importance and Significance
The DJI is widely used as a barometer of the health of the U.S. stock market and the overall economy. It is closely watched by investors, analysts, and policymakers as a leading indicator of economic trends. Movements in the DJI can have a significant impact on investor sentiment and market activity.
تعليقات