“It gives investors reason to pause following the recent strong rally in stocks,” Russell said. “But the damage could be limited given the potential for revisions.” Real estate stocks led the index lower, hurt by 5% drops in Boston Properties and Alexandria Real Estate Equities. The utilities and consumer discretionary sectors also weighed on the S&P 500, with each down more than 2%.

  1. The index is maintained by S&P Dow Jones Indices, an entity majority-owned by S&P Global.
  2. As the economy changes over time, so does the composition of the index.
  3. It has gained 93% since it reported quarterly financials on Feb. 8.
  4. Stock futures were lower on Monday as Wall Street turned its attention to the January consumer price index report.
  5. The table below alphabetically lists the companies included in the DJIA as of June 2022.

When the index is moving up, the economy is said to be in good shape and investors are generally making money. Furthermore, critics believe that factoring only the price of a stock in the calculation does not accurately reflect a company, as much as considering a company’s market cap would. In this manner, a company with a higher stock price but a smaller market cap would have more weight than a company with a smaller stock price but a larger market cap, which would poorly reflect the true size of a company. They talk about it on the television and in newspapers all the time, normally when discussing the performance of the stock market and the companies that drive the U.S. economy.

That marks a return to trading in the red after a recent rally briefly pulled the index into positive territory compared with the start of 2024. Yields and prices move in opposite directions, and one basis point equals 0.01%. This stat will hold true as long as the XSW ETF closes down 3.42%; otherwise, it will be the worst-performing day since Aug. 2, 2023.

Many critics of the Dow argue that it does not significantly represent the state of the U.S. economy as it consists of only 30 large-cap U.S. companies. They believe the number of companies is too small and it neglects companies of different sizes. Many critics believe the S&P 500 is a better representation of the economy as it includes significantly more companies, 500 versus 30.

ZoomInfo Technologies – Shares of the market intelligence company soared nearly 23%. ZoomInfo posted adjusted earnings of 26 cents per share on revenue of $316 million in the fourth quarter. Analysts polled by LSEG called for earnings of 25 cents a share and revenue of $311 million. Nvidia shares rose 1% earlier on Tuesday, bucking Monday’s broader market downtrend and weakness among technology stocks as yields marched higher. In corporate news, JetBlue Airways spiked 20% after activist investor Carl Icahn reported a nearly 10% stake in the airline.

Some risk that January CPI is hotter than expected

DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. The DJIA launched in 1896 with just 12 companies, primarily in the industrial sector. Since then, it’s changed many times—the very first came three months after the 30-component index launched. The first large-scale change was in 1932 when eight stocks in the Dow were replaced. In the early 20th century, the performance of industrial companies was typically tied to the overall growth rate in the economy. That cemented the relationship between the Dow’s performance and the overall economy.

Coca-Cola shares were little changed after the beverage giant posted mixed results for the fourth quarter. The 10-year Treasury yield spiked 10 basis points to 4.27%, hitting a new high for 2024 after a hotter-than-expected inflation report. Shopify — The e-commerce company saw shares slide more than 10% after it gave a mixed forecast for the current quarter. Shopify said it expects free cash flow margin to be in the high-single digits, below Wall Street’s projected 13.6%. The company did beat fourth-quarter earnings and revenue estimates.

Stock Heatmap Today, 02/09/2024: Navigating the Market’s Pulse

Industrial companies’ performance is often seen as synonymous with that of the overall economy, making the DJIA a key measure of broader economic health. Although the economy’s health is now tied to many other sectors, the DJIA is still seen as a vital indicator of the U.S. economy’s well-being. Avis Budget Group — Shares slipped about 1% after the rental car company’s fourth-quarter revenue of $2.76 billion in the fourth quarter missed estimates. Analysts polled by LSEG, formerly known as Refinitiv, forecast $2.81 billion. “Inflation data this week could help determine whether market confidence in the health of the US economy should mount further,” he wrote.

That makes it a hot topic of debate and, according to many pundits, a key barometer of the state of the overall stock market and economy. The value of the index can also be calculated as the sum of the stock prices of the companies included in the index, divided by a factor, which is approximately 0.152 as of November 2021[update]. The factor is changed whenever a constituent company undergoes a stock split so that the value of the index is unaffected by the stock split. The Dow Jones Industrial Average, or the Dow for short, is one way of measuring the stock market’s overall direction. When the Dow goes up, it is considered bullish, and most stocks usually do well. When the Dow falls, it is bearish, and most stocks typically lose money.

Who Is Dow Jones?

Stock futures were lower on Monday as Wall Street turned its attention to the January consumer price index report. Even with the recent string of positive days, the Russell 2000 continues to lag the three major averages for the year. Tech continues to dominate, with the Nasdaq Composite up more than 6% this year. The Dow Jones nornikel Industrial Average is up just shy of 3% in the period. The index surpassed 38,000 points just minutes before its close, but slipped slightly to end the day at 37,963.97 with a 2.89% gain. The company behind My Little Pony and Dungeons & Dragons earned 38 cents per share, excluding items, on $1.29 billion in revenue.

The Companies of the Dow 30

Revenue came in at $10.85 billion, beating a forecast of $10.68 billion. The stronger-than-expected sales were driven in part by higher prices. Hasbro tumbled more than 12% in premarket trading after the toymaker missed financial expectations for the fourth quarter. A strong earnings season has propelled a market rally so far in 2024, with the Dow Jones Industrial Average cinching another record close on Monday afternoon.

“That said, this probably puts a final nail in the coffin for a March rate cut, and even makes May less likely.” A hotter-than-expected inflation print is “not entirely unusual” for January, but it does move out expectations of a rate cut from the Federal Reserve, according to Sonu Varghese, global macro strategist at Carson Group. While the data can thwart optimism around a cut to interest rates at the May Federal Reserve policy meeting, he noted there’s “noise” in categories like auto insurance and rent within the consumer price index. The Dow 30 was created by journalist Charles Dow, the man behind the Wall Street Journal, and his business partner Edward Jones in 1896. It was launched as a spin-off of the Dow Jones Transportation Average and is the second oldest stock market index in the U.S. Shares of Japanese investment holding company SoftBank jumped as much as 10.2% as Arm shares continued their rally into a second week.

Individuals can invest in the Dow, which would mean gaining exposure to all of the companies listed in it, through exchange-traded funds (ETFs), such as the SPDR Dow Jones Industrial Average ETF (DIA). Companies are replaced when they no longer meet the index’s listing criteria with those that do. Over time, the index became a bellwether of the U.S. economy, reflecting economic changes.

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