Dow Jones

The US30 otherwise known as the DJ30 or just Dow is a price-weighted stock market index that measures the performance of the 30 largest publicly owned companies listed on the New York Stock Exchange. Unlike most global indices that are a weighted average of the market capitalizations, the Wall Street 30 is a price-weighted average. It was founded by Wall Street Journal editor Charles Dow and was first calculated on May 26, 1896, making it one of the oldest stock indexes.

The 30 stocks in its listing can dictate the movement of the entire stock market. It is considered a strong indicator of the US economy and is one of the most monitored and regularly cited stock indexes in the world. The stocks forming the Dow Jones 30 Index range from diverse sectors including industrial, healthcare, consumer services, technology, and more. The composition of the index varies with time as stocks and industries represented fall in and out of favor.

Dow Jones Companies

Dow Jones is a price-weighted stock index and by definition, the stock of each company included in the index is weighted by its price per share. Dow Jones is the average of the share prices of its 30 constituents.

In addition, higher-priced stocks have greater weight in terms of the index value and changes in the index. When trading Dow Jones, watch the prices of the following companies’ stocks closely while paying special attention to the most expensive stocks.

The Dow Jones Stocks

The “Dow 30” list includes companies that cover a wide range of sectors.