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Dow Jones & Company

PUBLISHED Jun 15, 2022, 7:30:17 PM        SHARE

imgMuhammad Shoaib

INTRODUCTION

Dow Jones or Dow Jones & Company is considered to the one of the world's largest business and financial news companies. It measures the average of 30 most actively traded industrial stocks known as the Dow Jones Industrial Average (DJIA), this average shows the general trends in the price of stocks in the United State. In addition to these, the company also owns many other indexes which represent the different sectors of the economy, including the Dow Jones Transportation Average, which tracks 20 transportation companies, such as airlines and delivery services, and another major index is the Dow Jones Utility Average, which tracks 15 U.S. utility stocks.

History

In 1896, Charles Dow the founder of the Wall Street Journal, Edward Jones, and Charles Bergstresser founded Dow Jones. In 1902, after the death of Charles Jones, the company was acquired by Clarence Barron, the leading financial journalist of the day. However, he passed away in 1928, and his stepdaughters and Martha Bancroft. Till 2007 the company was controlled by the Bancroft family holding 64% of the voting stock, but in 2007, it was acquired by News Corporation and became the subsidiary company of New Corporation. In this way, the Bancroft family’s 105 years of ownership were ended. In the beginning, this company consisted of 12 companies namely American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennessee Coal and Iron, U.S. Leather, and U.S. Rubber, however, later many other companies were also added.

Dow Jones Industrial Index Components Serial No. Company Symbol Year Added 1 Proctor & Gamble PG 1932 2 3M MMM 1976 3 IBM IBM 1979 4 Merck & Co. MRK 1979 5 American Express AXP 1982 6 McDonald's MCD 1985 7 Boeing BA 1987 8 The Coca-Cola Company KO 1987 9 Caterpillar CAT 1991 10 JPMorgan Chase JPM 1991 11 The Walt Disney Company DIS 1991 12 Johnson & Johnson JNJ 1997 13 Walmart WMT 1997 14 Intel INTC 1999 15 Microsoft MSFT 1999 16 The Home Depot HD 1999 17 Verizon VZ 2004 18 Chevron CVX 2008 19 Cisco Systems CSCO 2009 20 The Travelers Companies TRV 2009 21 UnitedHealth Group UNH 2012 22 Goldman Sachs GS 2013 23 NIKE NKE 2013 24 Visa V 2013 25 Apple Inc. AAPL 2015 26 Walgreens Boots Alliance WBA 2018 27 Dow Inc. DOW 2019 28 Amgen AMGN 2020 29 Honeywell HON 2020 30 Salesforce CRM 2020

Dow Jones Transportation Average (DJTA)

The Dow Jones Transportation Average (DJTA) is also known as Dow Transports, it is a price-weighted average of 20 transportation stocks that are traded in the US. It was first compiled by Charles Dow in 1884, and it is considered the oldest U.S. stock index. In this early stage, it consisted of nine railroad companies and two other companies. Later, many other companies like marine transportation, airlines, logistic, trucking, and delivery services were added to the list. Although, the importance of the Dow Jones Transportation Average (DJTA) is decreased in the stock market than it was before, still, it helps the investors and creditors to make their portfolios. It shows very rare changes in its value, however, the market experienced a very sharp change in DJTA, because of Covid-19, which completely devastated the airline stocks. Dow Jones Transports Index Components Serial No. Company Symbol 1 ALASKA AIR GROUP ALK 2 American Airlines Group Inc. AAL 3 AVIS BUDGET GROUP CAR 4 CH ROBINSON WORLDWIDE CHRW 5 CSX CSX 6 DELTA AIR LINES DAL 7 EXPEDITORS INTL of WA EXPD 8 FEDEX FDX 9 JB HUNT TRANS JBHT 10 JETBLUE AIRWAYS JBLU 11 KANSAS CITY SOUTHERN KSU 12 KIRBY KEX 13 LANDSTAR SYSTEM LSTR 14 MATSON MATX 15 NORFOLK SOUTHERN NSC 16 RYDER SYSTEM R 17 SOUTHWEST AIRLINES LUV 18 UNION PACIFIC UNP 19 UNITED CONTINENTAL UAL 20 UNITED PARCEL SERVICE UPS

Dow Jones Utility Average (DJUA)

The Dow Jones Utility Average (DJUA) also referred to as Dow Jones Utilities is another price-weighted index that tracks the performance of prominent utility companies which are traded in the United State. There are 15 top utility companies on their list. It was created in 1929 after removing all utility companies from Dow Jones Industrial Average (DJIA). Following are the companies which are included in Dow Jones Utility Average (DJUA). Dow Jones Utility Average Components Serial No. Company Symbol Type 1 AES AES electric utilities 2 American Electric Power AEP electric utilities 3 American Water AWK water utilities 4 Atmos Energy ATO gas utilities 5 Con Edison ED electric utilities 6 Dominion Energy D electric utilities 7 Duke Energy DUK electric utilities 8 Edison International EIX electric utilities 9 Exelon EXC diversified utilities 10 FirstEnergy FE electric utilities 11 NextEra Energy NEE electric utilities 12 PSEG PEG diversified utilities 13 Sempra SRE multi-utilities 14 Southern Company SO electric utilities 15 Xcel Energy XEL electric utilities

There is no solid rule for companies to be in Dow Jones Utility Indices, however, companies prefer those stocks that are popular and have constant growth. They must be incorporated in United State, and most of their revenue is generated from the U.S.

Conclusion

In a nutshell, Dow Jones is one of the oldest and the largest business and financial news companies serving since 1882. It is well known for Dow Jones Industrial Average (DJIA) other than this there are two other indices Dow Jones Utility Average (DJUA) and Dow Jones Transportation Average (DJTA) which help the investors and creditors to invest their money in different stocks. They calculate the stock price, and price per share of different stocks and give a single number to summarize the ups and downs of the market. .



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