The Dow Jones Industrial Average also referred to as the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow. It is now owned by the CME Group, which is the majority owner of Dow Jones Indexes.
It is an index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market. Big companies like General Motors, Goodyear, IBM and Exxon are the kinds of companies that make up this index.
You can trade these stocks on the NYSE and Nasdaq.
The Dow is among the most closely watched U.S. benchmark indices tracking targeted stock market activity. Although Dow compiled the index to gauge the performance of the industrial sector within the American economy, the index's performance continues to be influenced by not only corporate and economic reports, but also by domestic and foreign political events such as war and terrorism, as well as by natural disasters that could potentially lead to economic harm.
Like most other stock market indices, the Dow undergoes periods of general increase and general declines or stagnation. A bull market is a term denoting a period of price increases, while a bear market denotes a period of declines.
The DJIA hit its all time high on Thursday 11th October 2007: 14,198.10
Dow 30 Market Influences
The biggest influence on the stock market is corporate results. The earnings of a corporation is the driving force behind a stock's price. Investors own a stock to participate in the profitability of a corporation. A stock's price will rise if corporate earnings grow or fall as earnings decline or growth slows.