The Dow Jones Industrial Average – Drops to Its lowest Level

By | Jul 8, 2008

On July 8, 1932, the Dow Jones Industrial Average (DJIA) reached its lowest point during the period that is called the Great depression. On that day it reached 41.22. From 9/3/1929, the beginning of the 1929 crash, until this date it dropped by 89.2%. The full recovery from this wasn’t until 1954.

The DJIA was first published in the Customer Afternoon Letter on May 26, 1886 and represented 12 of the most important American industries. These were American Cotton Oil Company, American Sugar Company, American Tobacco Company, Chicago Gas Company, Distilling & Cattle Feeding Company,General Electric, Laclede Gas Light Company, National Lead Company, North American Company, Tennessee Coal, Iron and Railroad Company, US Leather Company and United States Rubber Company.

Of these original companies of the DJIA, General Electric is the only one that is still on the Dow. In fact they are the only one that is still in business.

Over the years the companies that make up the DJIA has changed depending on marketing conditions and other factors. Whenever this has happen the scale used to calculate the index is adjusted so that the valie us not directly affected. The last time it was adjusted was on February 19, 2008 when two companies, Altria Group and Honeywell, were dropped and replaced with Bank Of American and Chevron.

The Dow Jones is 30 of the largest and widely held public companies. They are 3M, Alcoa, American Express, American international Group, AT&T, Bank of America, Boeing, Caterpillar, Chevron, Citigroup, Coca-Cola, DuPont, ExxonMobil, General Electric, general Motors, Hewlett-Packard, Home Depot, Intel, IBM, Johnson & Johnson, JPMorgan Chase, McDonalds, Merch, Microsoft, Pifzer, Procter & Gamble, United Technologies Corp., Verizon, WalMart and Walt Disney.

On October 9, 2007 the DJIA closed at its highest ever recorded level. On that day it was 14,164.53. It wasn’t until November 14, 1972 that it first reached 1000, closing that day at 1,003.16.


!

Thank You for Reading

Leave a Comment

If you would like to make a comment, please fill out the form below.

Name (required)

Email (required)

Website

Comments

WordPress Themes by DBT - Copyright © 2007-2017 6 Things To Consider. All Rights Reserved.