WHAT ARE THE MAIN COMPONENTS OF THE DOW JONES INDUSTRIAL AVERAGE?

What are the main components of the Dow Jones Industrial Average?

What are the main components of the Dow Jones Industrial Average?

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The Dow Jones Industrial Average (DJIA) is a prominent stock market index that tracks the performance of 30 major publicly traded companies in the United States. These companies are selected based on their reputation, size, and industry leadership. The DJIA serves as a barometer for the overall health of the U.S. economy and stock market.

Main Components of the Dow Jones Industrial Average


As of December 2024, the following companies are included in the DJIA:

  1. Apple Inc. (AAPL)

  2. Microsoft Corp. (MSFT)

  3. UnitedHealth Group Inc. (UNH)

  4. Goldman Sachs Group Inc. (GS)

  5. Boeing Co. (BA)

  6. Home Depot Inc. (HD)

  7. Visa Inc. (V)

  8. Coca-Cola Co. (KO)

  9. American Express Co. (AXP)

  10. IBM Corp. (IBM)

  11. Chevron Corp. (CVX)

  12. Walmart Inc. (WMT)

  13. McDonald's Corp. (MCD)

  14. Johnson & Johnson (JNJ)

  15. Procter & Gamble Co. (PG)

  16. 3M Company (MMM)

  17. Disney (DIS)

  18. Intel Corp. (INTC)

  19. Amgen Inc. (AMGN)

  20. Nike Inc. (NKE)

  21. Salesforce.com Inc. (CRM)

  22. Travelers Companies Inc. (TRV)

  23. Honeywell International Inc. (HON)

  24. Caterpillar Inc. (CAT)

  25. Dow Inc. (DOW)

  26. Verizon Communications Inc. (VZ)

  27. Cisco Systems Inc. (CSCO)

  28. Exxon Mobil Corp. (XOM)

  29. Sherwin-Williams Company (SHW)

  30. Nvidia Corp.(NVDA)


Characteristics of the DJIA



  • Price-Weighted Index: Unlike many other indices that are market-capitalization weighted, the DJIA is price-weighted, meaning that companies with higher stock prices have a greater influence on the index's movement.

  • Selection Process: The components of the DJIA are chosen by a committee at S&P Dow Jones Indices, which aims to reflect significant sectors of the U.S economy.

  • Historical Context: The DJIA was first calculated in 1896 and has undergone several changes in its composition over the years to remain relevant to current market conditions.


Conclusion


The Dow Jones Industrial Average remains a key indicator of market performance and economic health in the United States, encompassing some of the most influential companies across various industries. Understanding its components and how they interact can provide valuable insights for investors and analysts alike as they navigate the complexities of the stock market landscape.-Powered By Hexadecimal Software Pvt. Ltd.

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