Dow Jones Industrial Average

How Well Do You Know the Dow Jones Industrial Average?

Dow Jones Industrial Average

Most investors check on the Dow Jones Industrial Average at the end of every trading day, if not more frequently.

Over its 119-year history, the DJIA has become synonymous with the markets. But while investors big and small rely on the Dow Jones to measure how well or how poorly stocks are doing, how much do most people really know about it?

Check out these five key facts that show how the Dow came to be what it is now...

DJIA Today Suffers Fourth Straight Decline, 39-Point Loss

DJIA today

The DJIA today managed to bounce back from early triple-digit losses but still closed down 39 points. The S&P 500 struggled to its fourth-straight daily decline.

Investors brushed aside concerns about a pending interest-rate hike by the Federal Reserve and jitters over the upcoming earnings season.

Here are the day's top stories, plus our new profit tip for investors...

DJIA Today Fell 292 Points – Here's What Happened   

DJIA today

The DJIA today fell 292 points. The Nasdaq suffered its steepest one-day decline in almost a year.

What happened? A wide sell-off in the biotech and technology sectors outpaced gains fueled by news of a merger between Kraft Foods Group (Nasdaq: KRFT) and H.J. Heinz Co. Continued weakness in Europe also remains a central concern to investors.

Here are the day's top stories, plus our new profit tip for investors...

DJIA Index Falls Triple Digits on Rate-Hike Chatter

DJIA index

The DJIA index dipped 104 points Tuesday. Why the decline? Expectations for a faster rate increase by the Federal Reserve outweighed improving economic data.

New home sales hit a seven-year high in February, a sign of surging demand in the housing market. Existing home sales were also up 1.2% in February despite bad weather.

Here are the day's top market stories - plus our new profit tip for investors...

What Happened to the First DJIA Stocks?

bear-market

The first DJIA stocks bore little resemblance to the Dow Jones Industrial Average stocks of today.

Most of the original DJIA stocks are completely unknown now.

The names paint a gritty picture of the U.S. corporate powers of the day. The very first DJIA stocks included two gas companies, two agricultural companies, and representatives from the chemical, steel, leather and rubber industries.

This is a complete list of the first 12 DJIA stocks. It includes when each company was dropped from the index as well as what became of it...

The Dow Jones Today Soars 169 Points on Biotech News, NKE Earnings

Dow Jones today

The Dow Jones Industrial Average reversed a streak of three consecutive weekly losses and added 201 points on Friday.

Why the gain? Declining dollar raised corporate earnings enthusiasm, while the markets got a boost from Nike Corp. (NYSE: NKE) earnings and exciting news in biotech.

Here are the day's top market stories, plus our new profit tip for investors...

DJIA Today Moving on these Top 7 News Stories

DJIA today

Good Morning!Stock futures for Friday, March 20, forecasted a 141-point gain for the DJIA today from yesterday's close. The Dow Jones Industrial Average shed 117 points on Thursday thanks to a slump in oil and commodity prices and a stronger dollar that weighed down energy and material stocks.

What to Watch Today: Keep an ear to two speeches from Members of the Federal Reserve, Charles Evans and Dennis Lockhart. They will be scrutinized for any insight on when the central bank could increase interest rates.

Here's what else you should know about the DJIA today - including your "Money Morning Tip of the Day" - to make it a profitable Friday:

Dow Jones Industrial Average Today Falls Triple Digits – Here's Why

BAC dividend

The Dow Jones Industrial Average today shed 117 points. The reason? A slump in oil and commodity prices and a stronger dollar weighed down energy and material stocks.

The markets pulled back after yesterday's announcement that the central bank will not increase interest rates until the nation sees an improvement in its jobs picture and inflation begins to rise.

Here are the day's top market stories, plus our new profit tip for investors...

DJIA Today Dips 128 Points as FOMC Meeting Kicks Off

apple TV

The DJIA today slipped 128 points. The cause? Investor jitters about interest rates as the FOMC meeting gets underway, coupled with falling oil prices and new concerns about the U.S. economy.

Nine of the 10 industry sectors of the S&P 500 Index dropped. Shares of Johnson & Johnson (NYSE: JNJ) were the biggest drag on the S&P 500 today, falling roughly 1.3%.

Here are the day's top stories, plus our new profit tip for investors...

DJIA Index Rallies Triple Digits Ahead of Fed Meeting

DJIA index

The DJIA Index surged 228 points Monday, a day ahead of the Federal Open Market Committee's second meeting of the year.

The cause? A weakening dollar abated concerns about its impact on corporate earnings abroad.

Oil prices were also a big story again today, as both WTI crude and Brent crude slid on oversupply concerns.

Here are the other top market stories - plus our new profit tip for investors...

Unheeded Signs of the Times

Old pocket barometer altimeter

There was news last week of two negative indicators we haven't seen since the Lehman Brothers bankruptcy in 2008: the low level of the inventory-to-sales ratio - a key measure of future corporate profits - andretail sales falling, in February, for the third consecutive month.

We also learned the Atlanta Fed lowered its real-time 1Q GDP estimate to a moribund 0.6%, while jobless claims were back above 300,000.Lumber sales - animportant leading economic indicator - plunged, and technology bellwether Intel Corp (NASDAQ:INTC) lowered its revenue estimate for the first quarter by $1 billion on plunging PC sales.

On Thursday, March 12, just as we learned this discouraging news, thestock market saw its largest rally in months, with the S&P 500 jumping by 1.24% (25.31 points)....

Why is this not surprising?

Don't Dump Dow Jones Industrial Average Stocks Just Because the Index Did

Dow Jones Industrial Average stocks

Most of the mainstream financial media is frothing over what Apple Inc. (Nasdaq: AAPL) will do for the Dow.

Apple will join 29 other Dow Jones Industrial Average stocks after the close of trading March 18. When it replaces AT&T Inc. (NYSE: T).

But a look at how Dow stocks do after changes to the index says AT&T stock is headed up.

You see, when you compare the performance of previous Dow Jones rejects with the stocks that replaced them, on average the rejects come out ahead.

And not by just a small margin...

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