Financial Q&A: All this talk about market indexes: What do I need to know?

Mary Baldwin, Guest columnist Published 4:20 p.m. ET Sept. 11, 2020 | Updated 4:21 p.m. ET Sept. 11, 2020

CLOSE

Q: What’s going on with the market indexes? Should I be concerned?

A: The Dow Jones Industrial Average (DJIA) was created in 1896 and today is the most widely referenced stock market indicator. It’s open for trading from 9:30 a.m. to 4 p.m. daily, except weekends and holidays. It’s made up of 30 commonly held and frequently traded American companies in a variety of industries and is often referred to as “the market,” The 30 stocks are selected by a committee of editors of the Wall Street Journal and Dow Jones representatives.

The “Dow” is price-weighted; The higher the company’s stock price, the greater the weighting. Apple’s recent four-for-one split likely influenced the recent changes because tech exposure dropped from 27% to 20%.

The Dow Jones Industrial Average (DJIA) was created in 1896 and today is the most widely referenced stock market indicator. It’s open for trading from 9:30 a.m. to 4 p.m. daily, except weekends and holidays. The chart shows Dow Jones Industrial Average Performance over 100 years. (Photo: Macro Trends.net)

Exxon Mobil had been part of the Dow since 1928 and in 2011 it was the biggest company on earth. It was recently removed and replaced with Salesforce. Declared “The World’s Most Innovative Company” by Forbes in 2017, Salesforce will help with the tech loss that was created by the Apple split.

Arguably Amgen replaced Pfizer because of the company’s strong growth and innovation in biotech.

More: Financial Q&A: Should my furloughed son take up day trading as a new career?

More: Financial Q&A: Should I stay invested in the

Read More Here...

Bookmark the permalink.

Comments are closed.