Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
Dow Jones Industrial Average Today
Whether you're a new investor or someone who has a good baseline of investment experience, you've likely heard of the Dow Jones Industrial Average. Also known simply as the Dow or the Dow Jones, the Dow Jones Industrial Average today is considered a marker for overall performance of the stock market in the United States.
Unlike a traditional stock for a publicly traded company, you can't buy stock in the Dow Jones Industrial Average, but you can invest in ETFs, which are traded to match the Dow Jones Industrial Average now.
So, what is the state of the Dow Jones Industrial Average today? How does its performance affect investors? We've got the answers for you.
Dow Jones Industrial Average History
What's important to understand about the Dow Jones Industrial Average today is that it is an average, a number that's mathematically defined by the 30 different companies that are chosen to be represented on the Dow.
The Dow Jones Industrial Average today is made up of 30 publicly traded companies. Those companies include big names such as 3M, Apple, Chevron, JPMorgan Chase, and Walt Disney. The majority of the companies that make up the Dow Jones Average now are well known, respected companies that have proven long-term success.
The Dow Jones Industrial Average was created in 1896. The name of the Dow Jones Industrial Average came from the fact that the original companies that made up the average were all within the industrial sector.
Though the Dow Jones Industrial Average represents the performance of the U.S. market in general, it is affected by more than just the performance of the 30 companies that make up the average. The Dow Jones Industrial Average today is also affected by overall economic reports, local and global political events, natural disasters, and even terrorism.
Dow Jones Industrial Average Stocks to Watch And Buy
One of the reasons that investors turn to the Dow Jones Industrial Average today is because it is comprised of many companies that are successful over a long period of time. Investors feel a sense of security that the companies represented by the Dow Jones Industrial Average today are a good investment.
Both new and experienced investors feel comfortable and safe investing in ETFs that follow the stocks represented by the Dow Jones Industrial Average today. The Dow Jones Industrial Averages is comprised of companies that are considered successful, so using it to inspire your investment strategy is a smart choice.
Taking a long-term view on investing means looking at how companies have performed over years and decades, instead of over days and months. Companies on the Dow Jones Industrial Average such as Caterpillar, Boeing, Coca-Cola, and Johnson & Johnson may not be as showy as some of the technology stocks, but they are tried and tested to be successful over a long period of time.
If you're interested in learning more about the Dow Jones Industrial Average today and Dow stock, you can read our articles, familiarize yourself, and then look for a strong opportunity to invest.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.