A Look at the Dow Jones Today: What Are the Current Trends?

Dow Jones Today

Dow Jones Industrial Average is the most famous stock market index in the world. It tracks the performance of 30 large American corporations on a variety of factors. In the past few years, it’s been a roller coaster ride for all stocks. But, before you panic and sell your stocks on a day when they’re down, you need to know how Dow Jones works and what the overall trends are. You also need to understand how it measures success and if that success is actually sustainable over time. As of January 16th, 2019, the Dow Jones Industrial Average was at 26,737 points. That’s an increase of more than 1

What is the Dow Jones Industrial Average?

The Dow Jones today is the most famous stock market index in the world. It tracks the performance of 30 large American corporations on a variety of factors. In the past few years, it’s been a roller coaster ride for all stocks. But, before you panic and sell your stocks on a day when they’re down, you need to know how Dow Jones works and what the overall trends are. You also need to understand how it measures success and if that success is actually sustainable over time. The Dow Jones is the sum of the values of all 30 Dow Jones Industrial Average stocks. It doesn’t use some kind of super-secret formula or a secret formula to determine what the “average” stock looks like. It simply tracks the average value of all 30 stocks, every day.

How does Dow Jones work?

The Dow Jones today is the most famous stock market index in the world. It tracks the performance of 30 large American corporations on a variety of factors. It’s widely regarded as the best way to understand the stock market’s overall trends and assess the health of the U.S. economy. Dow Jones uses a variety of factors to track these changes and the overall health of the market, such as total shareholder return, earnings, and dividend yield. The weight of each of the 30 companies depends on how much of a percentage point each contributes to the overall index. As of January 16th, 2019, Dow Jones’ 30 largest components are ExxonMobil (XOM), Johnson & Johnson (JNJ), Apple (AAPL), Microsoft (MSFT), Wal-Mart Stores (WMT), AT&T (T), Bank of America (BAC), and JPMorgan Chase & Co (JPM).

Dow Jones trends in the last decade

Dow Jones tracks 30 of the biggest stocks in the U.S., including a number of technology companies. Since 2008, a good portion of the blue chips has gone through strong periods and weaker periods. The point is that the Dow Jones Industrial Average hasn’t seen consistent gains for the last few years. Here’s the data: On September 20th, 2008, the Dow Jones closed at 8,576 points. 

Is this trend sustainable over time?

Dow Jones reflects the current state of the economy. Its larger companies tend to make more money when the economy is doing better. And, since people tend to move jobs to where the economy is doing better, the Dow is used to gauge the health of a certain economy. So, a low point can also mean that a company is in trouble or experiencing a down market. Does this mean that a low point means that the entire stock market is down? No. Because of the way Dow Jones is calculated, a stock’s gain in price has to be more than its loss. Otherwise, the price of a stock will actually fall after a low point. Is the Dow Jones Industrial Average the best way to measure stock market health? Dow Jones is far from the only stock market index.

Conclusion

The Dow Jones is the most widely followed stock market index in the world. It tracks the performance of 30 large American corporations on a variety of factors. In the past few years, it’s been a roller coaster ride for all stocks. But, before you panic and sell your stocks on a day when they’re down, you need to know how Dow Jones works and what the overall trends are. You also need to understand how it measures success and if that success is actually sustainable over time. If you’re just starting your journey into the financial world, remember that what we call the “stock market index” is actually much different than the actual stock market. Sure, there are a lot of similarities and similar indices for comparison purposes.

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By Michael Caine

Michael Caine is the Owner of Amir Articles and also the founder of ANO Digital (Most Powerful Online Content Creator Company), from the USA, studied MBA in 2012, love to play games and write content in different categories.

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