Components of the Dow Jones and how it affects you!

Components of the Dow Jones!

 

Ha, ha, ha! Why am I laughing? Because the political types use this average when arguing about how good their party is doing or how bad the other party is doing. Most of the time, this average has nothing to do with the economy. They always change this index, taking stocks out and putting stocks in. Thousands of stocks are traded on about 100 exchanges around the world.

Beginning on September 20, 2013, after the close, the Dow Jones Industrial Average consists of the following 30 major American companies:

Company	Exchange	Symbol	Industry	Date Added
1.  3M	NYSE	MMM	Conglomerate	1976-08-09
2.  American Express	NYSE	AXP	Consumer finance	1982-08-30
3.  AT&T	NYSE	T	Telecommunication	1999-11-01
4.  Boeing	NYSE	BA	Aerospace and defense	1987-03-12
5.  Caterpillar	NYSE	CAT	Construction and mining equipment	1991-05-06
6.  Chevron	NYSE	CVX	Oil & gas	2008-02-19
7.  Cisco Systems	NASDAQ	CSCO	Computer networking	2009-06-08
8.  Coca-Cola	NYSE	KO	Beverages	1987-03-12
9.  DuPont	NYSE	DD	Chemical industry	1935-11-20
10. ExxonMobil	NYSE	XOM	Oil & gas	1928-10-01
11. General Electric	NYSE	GE	Conglomerate	1907-11-07
12. Goldman Sachs	NYSE	GS	Banking, Financial services	2013-09-20
13. The Home Depot	NYSE	HD	Home improvement retailer	1999-11-01
14. Intel	NASDAQ	INTC	Semiconductors	1999-11-01
15. IBM	NYSE	IBM	Computers and technology	1979-06-29
16. Johnson & Johnson	NYSE	JNJ	Pharmaceuticals	1997-03-17
17. JPMorgan Chase	NYSE	JPM	Banking	1991-05-06
18. McDonald's	NYSE	MCD	Fast food	1985-10-30
19. Merck	NYSE	MRK	Pharmaceuticals	1979-06-29
20. Microsoft	NASDAQ	MSFT	Software	1999-11-01
21. Nike	NYSE	NKE	Apparel	2013-09-20
22. Pfizer	NYSE	PFE	Pharmaceuticals	2004-04-08
23. Procter & Gamble	NYSE	PG	Consumer goods	1932-05-26
24. Travelers	NYSE	TRV	Insurance	2009-06-08
25. UnitedHealth Group	NYSE	UNH	Managed health care	2012-09-24
26. United Technologies	NYSE	UTX	Conglomerate	1939-03-14
27. Verizon	NYSE	VZ	Telecommunication	2004-04-08
28. Visa	NYSE	V	Consumer banking	2013-09-20
29. Wal-Mart	NYSE	WMT	Retail	1997-03-17
30. Walt Disney	NYSE	DIS	Broadcasting and entertainment	1991-05-06

 

Initial components

Dow calculated his first average purely of industrial stocks on May 26, 1896, creating what is now known as the Dow Jones Industrial Average. Of the original 12 industrials, only General Electric currently remains part of that index. The other 11 were:

• American Cotton Oil Company, a predecessor company to Bestfoods, now part of Unilever.
• American Sugar Company, became Domino Sugar in 1900, now Domino Foods, Inc.
• American Tobacco Company, broken up in a 1911 antitrust action.
• Chicago Gas Company, bought by Peoples Gas Light in 1897, now an operating subsidiary of Integrys Energy Group.
• Distilling & Cattle Feeding Company, now Millennium Chemicals, formerly a division of LyondellBasell, the latter of which recently emerged from Chapter 11 bankruptcy.[12]
• Laclede Gas Company, still in operation as the Laclede Group, Inc., removed from the Dow Jones Industrial Average in 1899.
• National Lead Company, now NL Industries, removed from the Dow Jones Industrial Average in 1916.
• North American Company, an electric utility holding company, broken up by the U.S. Securities and Exchange Commission (SEC) in 1946.
• Tennessee Coal, Iron and Railroad Company in Birmingham, Alabama, bought by U.S. Steel in 1907; U.S. Steel was removed from the Dow Jones Industrial Average in 1991.
• U.S. Leather Company, dissolved in 1952.
• United States Rubber Company, changed its name to Uniroyal in 1961, merged with private B.F. Goodrich in 1986, bought by Michelin in 1990.

 

What does this mean to you?

If you like to follow the Dow on the nightly news, you may want to buy DOW Jones SPDR Funds.

The link below will show you information on how to buy SPDR Dow Jones Industrial Average ETF (DIA);

http://etfs.morningstar.com/quote?t=DIA

 

From 01-12-1929 to 01-12-2013

 

Since its inception in 1896, the iconic Dow Jones Industrial Average has served as a barometer of the U.S. stock market by tracking a select group of the country's industrial leaders. SPDR Dow Jones Industrial Average  offers investors a convenient way to replicate the performance of this iconic index. The fund is a suitable core holding because it invests in a fairly diverse set of quality companies that approximates the industry composition of the U.S. stock market. 

 

You may want to put this in your IRA or your 401K at work.  






My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets

• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.