NYC Mayor Michael Bloomberg Calls Dow:
‘Most Recognizable, Most Frequently Quoted,
Longest-Serving Market Indicator of its Kind’
Charles Dow was a ‘Pioneer’ Who Anticipated Investors
‘Would Value Objective Measure of How Large Companies Traded During a Standard Session in the Stock Market’, Mayor Bloomberg Adds…
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The City of New York has proclaimed May 26, 2011 to be “Dow Jones Industrial Average Day” in recognition of the iconic index’s 115th anniversary.
Founded on May 26, 1896 in New York City by Charles Dow, one of the founders of The Wall Street Journal, the Dow Jones Industrial Average has evolved from 12 stocks published for readers of The Journal to 30 stocks, becoming “the most recognizable, most frequently quoted, and longest-serving market indicator of its kind,” said New York City Mayor Michael Bloomberg in an official proclamation issued from his office.
Referring to The Dow’s 115th anniversary as an “historic milestone,” Mayor Bloomberg added that Mr. Dow anticipated investors “would value an objective measure of how large companies traded during a standard session in the stock market.”
“As we celebrate The Dow’s 115th anniversary, we take this opportunity to reflect on the pioneers like Charles Dow who had the foresight to turn their ideas into action, and make our city the financial, media, and intellectual capital it is today,” Mayor Bloomberg said.
The Dow Jones Industrial Average is owned by Dow Jones Indexes, part of a joint venture company owned 90 percent by CME Group Inc. and 10 percent by Dow Jones & Company, Inc., a News Corporation company.
“We’re flattered by the City of New York’s acknowledgement of the Dow Jones Industrial Average’s 115th anniversary,” said John A. Prestbo, Editor and Executive Director of Dow Jones Indexes. “Since its birth in the late 19th Century, The Dow has become a fixture in American life – the gold standard in measuring economic health and prosperity with a track record unrivaled by any other index. The Dow is the most quoted gauge of the U.S. stock market globally and it continues to be the answer to the question: ‘What did the market do today?’”
According to Dow Jones Indexes, more than $37 billion in assets and 2,600 financial products are linked to The Dow. Further, its 30 stocks account for 24% of the total U.S. market value, with 39% of the U.S. market’s total dividends paid by The Dow’s component stocks.
The 30 components of the Dow Jones Industrial Average are: 3M, Alcoa, American Express, AT&T, Bank of America, Boeing, Caterpillar, Chevron, Cisco Systems, Coca-Cola, DuPont, Exxon Mobil, General Electric, Hewlett-Packard, Home Depot, Intel, IBM, Johnson & Johnson, JPMorgan Chase, Kraft Foods, McDonald’s, Merck, Microsoft, Pfizer, Procter & Gamble, Travelers, United Technologies, Verizon Communications, Wal-Mart, and Walt Disney.
“Someone once wrote that talking about the stock market without mentioning the Dow Jones Industrial Average is like talking about the weather without mentioning the temperature,” said Mr. Prestbo. “The metaphor is very apt.”
Source: ETFWorld – Dow Jones Indexes