Dow Jones

The Dow Jones Industrial Average, or Dow Jones, is a weighted index representing the stock price action of 30 of the largest U.S. corporations. It is the world’s most widely followed stock market index. The Dow Jones Industrial Average was created on May 26, 1896 and is named after Charles Dow and Edward Jones. The earnings and revenues of large corporations are often leading economic indicators. Hence, economists often look at the Dow Jones Industrial Average as an indicator of economic activity. If the index is hitting new highs, economic activity can be expected to be brisk in the next six months. Comparatively, if the index is falling to new lows, poor economic times could lie ahead.


This Could Lead to a Stock Market Crash in 2016 Investors are cheering on the stock market after such a strong performance in recent years, but problems are brewing beneath the surface. These three trends should terrify shareholders everywhere and…

Despite a few years of weak gold prices, China’s currency depreciation could be the tipping point that drives gold above $5,000. The yellow metal skyrocketed between 2001 and 2011, and another decade of similar growth is not unfeasible. Let me…

Trading volume on the stock market is plunging. In classical technical analysis, rising stock prices on low trading volume are usually a warning sign of lower prices for stocks ahead. Why? Lower volume suggests there is not much investor participation…

The demand and supply situation for gold bullion, something I’ve often talked about in these pages, has taken a new course…one very favorable to gold bulls like me. Gold buying in India is up 450% in the first nine months…

Over the past few months, I warned my readers the stock market had become a risky place to be. While I also suggested euphoria could bring the market higher than most thought possible—to the point of irrationality—the bubble has now…

Now that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index…

With nine months behind us this year, today we look at how two popular forms of investment have done in 2014 and where I think they are headed for the remainder of the year. Starting with stocks, the Dow Jones…

FedEx Corporation (FDX) just bounced off a new record-high on the stock market and is an important component of the Dow Jones Transportation Average. In its fiscal first quarter of 2015 (ended August 31, 2014), the company’s sales and earnings…

Getting a sense of where stocks are going to go in the year ahead is always difficult with the major indices at their all-time highs. The fundamental backdrop is still very favorable for equities. While the Federal Reserve has put…

As we progress to the end of 2014, my skepticism towards the U.S. housing market increases. In fact, the fate of home prices in 2015 is in question. I don’t expect an outright collapse of the housing market like the…

So long as transportation stocks are ticking higher, the stock market is much less susceptible to a price retrenchment. The Dow Jones Transportation Average just blew past 8,500, recently hitting a new record-high after taking a well-deserved break around mid-July…

Between the first quarter of 2012 and the second quarter of 2014, auto sales in the U.S. economy have increased 16%. (Source: Federal Reserve Bank of St. Louis web site, last accessed August 21, 2014.) And auto sales this year…

If you follow the financial news, it feels like the stock market is moving higher and higher…a situation in which investors often feel they are missing out. But the reality of the situation is very different. So far this year,…

The resilience of this stock market is uncanny. Just when transportation stocks, a leading market sector at any time, took a well-deserved break, components turned upward and are once again pushing record highs. Union Pacific Corporation (UNP) is a benchmark…

The stock market has an underlying strength to it, seemingly only to be undone by geopolitical events. Fed action always has the potential to shock the system. Negative economic news isn’t fazing this market. On the back of a pretty…