Dow Jones Industrial Average (DJIA) Overview
One of the most followed indices in the world, The Dow Jones Industrial Average (DJIA) tracks the thirty largest, publicly-owned companies traded on the New York Stock Exchange (NYSE and the NASDAQ).
How is the DJIA Calculated?
Higher share price stocks are given a higher weight in the index. Therefore, a more significant percentage move in the higher-priced components has more impact on the final calculated value.
How the DJIA differs from the S&P indices is that it is not a weighted arithmetic average, nor does it represent its component companies market-cap. Instead, it is the sum of the price of one share of stock for all the components, divided by the divisor.
Therefore, a one-point move in any of the component stocks will move the index by an equal number of points.
DJIA = SUM (Component stock prices) / Divisor
The following components make up the Dow Jones Industrial Average: 3M, American Express, Apple Inc., Boeing, Caterpillar Inc., Chevron Corporation, Cisco Systems, The Coca-Cola Company, Dow Inc., ExxonMobil, Goldman Sachs, The Home Depot, IBM, Intel, Johnson & Johnson, JPMorgan Chase, McDonald’s, Merck & Co., Microsoft, Nike, Pfizer, Procter & Gamble, The Travelers Companies, United Health Group, United Technologies, Verizon, Visa Inc., Walmart, Walgreens Boots Alliance, The Walt Disney Company.
Learn more about Dow Jones price and other companies in our FX Academy.