Skip to Content

Dow Jones Industrial Average (DJIA)

What is the Dow Jones Industrial Average?

Dow Jones Industrial Average, or “The Dow,” is one of the most-watched U.S. indexes and is considered a leading economic indicator. The Dow includes 30 blue-chip stocks.

  • The Dow is one of the most quoted indexes in the United States and is composed of 30 blue- chip stocks from the New York Stock Exchange.
  • The Dow is considered an indicator of overall market performance.

The Dow Jones Industrial Average tracks 30 large, well-known blue-chip stocks trading on the New York Stock Exchange. It is price-weighted, meaning that higher-priced stocks affect index performance more than lower-priced ones.

One of the oldest and most quoted U.S. indexes, it was created by Charles Dow in 1896 and originally was called the Dow Jones Transportation Index, or DJTA. The index is also referred to as “The Dow” and has been a widely followed indicator of the stock market since Oct. 1, 1928. The Dow began with companies that were in the industrial sector and now consists of blue-chip stocks, or stocks in companies that have a strong history of financial success and stability and can withstand market volatility.