(Close) The Dow (DJI) and S&P (SP500) both gained 1.3% a week while the Nasdaq also gained 1%. In only the second session of the previous ten, the 500 ended lower. The 10-year Treasury return closed 7 basis points to 1.36 percent on the day of the week. That was 1.25% off Thursday, the lowest level since mid-February. (Close) The Dow (DJI) and the S&P (SP500) both gained 1.1% each week, while the Nasdaq gained 1%.
Wall Street had a mixed week with investors leaving cyclicals before Friday to find a house in high-quality technology shares. But Thursday’s Treasury selection rocked optimism in reflation and concerns about China. We address these problems and more on what has moved markets this week in our roundtable podcast Alpha Talks. This week Wall Street has had a look at China as its reaction to the recent Didi list raises worries about the feasibility of China’s future IPOs. Christopher Wood Jefferies “The trend is to separate the Chinese and American stock markets even further” Even before the pandemic, the Fed Chairman Powell established the stage for that new framework and sees that as an opportunity to reset monetary policies, she says.
(Close): the Dow (DJI) is among the highest averages and followed closely by the S&P (SP500) +0.6%. The Nasdaq (COMP.IND), as it usually does when yields climb, is underperforming. The Big 6 megacaps are mainly low, with Big Tech only as an order of the White House on Facebook. China’s tech giants have already hit 12-months.
(Close): Only the second down day over the last 10 sessions has the S&P 500 (SP500). But it was the largest decrease since the 18th June down by 1.3 percent. The rate drop continues. The 10-year treasury return slipped 3 basis points to 1.29% and decreased to 1.25%.
(Close): The S&P (SP500) ended up quite well, but broke its series of fixed new records in a succession for seven sessions. Seven out of 11 sectors closed lower, Energy (NYSEARCA:XLE) was the poorest during the crude session. New stocks of meme have been invited, with names such as Exela and Bridgeline Digital.
All main averages are in the negative as Info Tech (NYSEARCA:XLK), despite the ongoing decline in returns, loses its offer. The 10-year Treasury return is 7 basis points to 1.36 percent, while the intraday rate is 1.35 percent lower. The only winner is Real Estate (XLI), with Amazon (:) leading the list of S&P winners. The 10-year Treasury return is reduced to 1.36% by 7 basis points, and is only reduced by 1.35%. Dow (DJI) -1.1 percent is still the weakest that Goldman and Disney have pulled off.
Ten out of 11 S&P sectors are lower, with the energy sector (NYSEARCA:XLE) still falling significantly. Amazon leads the list of winners, whereas a range of energy supplies add up the list of losers. (Close): The biggest averages are red as Info Tech (NYSEARCA: XLK) loses its offer despite the steady drop in returns. The U.S. dollar is rising, leading to practically any gold parking gain today. Ten out of 11 S&P industries are lower, with Energy (:XLE) having the major decrease.
Ten out of 11 S&P sectors are lower, while NYSEARCA:XLE continues to tumble significantly. The 10-year treasury return is 7 basis points lower to 1.36 percent, which only reduces its intraday yield to 1.35 percent. All of the key averages are red, as Info Tech has lost its offer despite a steady drop in returns. Amazon leads the list of winners as a variety of energy stocks add the list of losers. Ten of the 11 S&P sectors are lower, with energy continuing to slide greatly (NYSEARCA:XLE).
Real Estate is the only winner, leading the winner list is Amazon (Amazon). Energy trader and expert John Kilduff doesn’t look for oil to approach $100, but it hits prices between $80 and $85 a barrel.
Dow Jones: What It Is and How It Works
The Dow Jones Industrial Average, or just the Dow (DJIA to investors), is the most followed US stock market index. It’s used as a way to roughly gauge how the US economy is doing. The higher the DJIA, the faster the economy is growing. The DJIA is calculated by adding the stock prices of 30 big, publicly-traded companies. Some of the companies are household names like Apple, Inc. (AAPL) and Walmart, Inc. (WMT). Others are more obscure, such as Caterpillar Inc. (CAT) and United Technologies Corp. (UTX). All of them are in big business sectors like technology, retail, and industrials.
How the Dow Jones Industrial Average Works
The 30 stocks that make up the DJIA are weighted based on their share of the total value of the stock market. That means the average stock is weighted more heavily than the other stocks. Therefore, the DJIA is calculated as a weighted average of the 30 stocks. The DJIA is compiled every day with two formulas, a basic formula and a complex formula. The basic formula takes into account the 30 companies’ shares outstanding, the number of shares sold, and the price of the share multiplied by the shares outstanding and the share price.
The DJIA is composed of 30 companies
The most well-known are the original 30 that started the index in 1896: American Stock Exchange (AMEX), Standard Oil Co. of New Jersey (Santa Fe), Chicago Bridge & Iron Co. (CBI), and Montgomery Ward & Co. (Wards). Some of the companies that made up the original 30 are no longer on the DJIA. For example, Sears, Roebuck and Co. (SHLD) and J.C. Penney Company (JCP) are no longer members. You can see how the 30 companies made up the original DJIA below: Now, there are only 20 DJIA members: 30 Dow members and Goldman Sachs (GS), which is an index component. Most other companies in the Dow aren’t listed on the exchange – for example, Caterpillar and Coca-Cola are very often purchased indirectly.
What the Dow Jones Industrial Average means
As you can see below, it’s used to track the overall performance of the US stock market. The DJIA is a good barometer of how the US economy is doing. At the same time, it also provides a good barometer of where the Dow is headed. As you can see, the DJIA has surged in recent years, due in large part to a growing US economy and surging corporate profits. But the Dow is also prone to wild swings from time to time. That’s because it’s weighted with a basket of stocks that represents the biggest companies in the market. As those companies rise in value, their weights increase in the index.
Why the Dow Jones Industrial Average is important
When the DJIA was first created in 1896, it represented about 12,500 companies. Today, that number is above 30,000. The index has risen about 22% since the start of the current bull market in 2009. How the DJIA works The Dow has been calculated for nearly a century, but it’s changed a lot over the years. The Dow is calculated by adding the stock prices of 30 big, publicly-traded companies. These are the 30 stocks that make up the index. Dow Jones, the owner of the index, doesn’t hold all of the stocks in the index. It works with S&P, a provider of investment research, to create the index. The Dow is designed to be a price-weighted index. That means each stock has the same weight in the index as the next-smallest stock.
What else affects the Dow Jones Industrial Average
Not all companies in the Dow are large. That’s why the index is only 30 of the most widely-held companies. In fact, 11 of the 30 stocks are no longer in the Dow: General Electric Hershey Co. (HSY) International Paper Co. (IP) Sysco Corp. (SYY) Procter & Gamble Co. (PG) American Express Co. (AXP) ConocoPhillips (COP) American Woodmark Corp. (AMWD) Staples (SPLS) The Dow Jones’ Price Movement All 30 of these big companies follow the US economy, and if the Dow’s price moves up or down, those companies should change with the economy, right? That’s right. An exception to that rule is Apple. The tech giant is the most widely-held stock, so its price moves up and down with the Dow. There are a few things going on here.
This is a great way to measure the health of the stock market. However, the index doesn’t tell the whole story. The Dow is made up of companies that are worth a total of about $3.25 trillion. But just as you wouldn’t buy a dozen eggs if you were just looking for the cheapest dozen, you shouldn’t try to gauge the health of the stock market by the combined value of the 30 stocks that make up the index. It’s important to remember that the Dow is a market-capitalization weighted index. A company’s market cap is a measure of how much it is worth, and the bigger a company is, the more it’s worth when the stock price is calculated for the DJIA. For instance, with a market cap of $4 billion, Boeing Company (BA) would account for the second-largest share in the Dow Jones.