Dow Jones 65 Composite Average

What Is the Dow Jones 65 Composite Average?

The Dow Jones 65 Composite Average is an index contained 65 large public companies in the industrial, transportation, and utility sectors. The index is comprised of the 30 stocks that form the Dow Jones Industrial Average (DJIA), 20 stocks that make up the Dow Jones Transportation Average (DJTA), and 15 stocks of the Dow Jones Utility Average (DJUA). The Dow Jones 65 Composite, similar to the three sub-indexes, is price-weighted.

While the Dow 65 is more thorough than the DJIA alone, it actually avoids numerous important technology or growth companies that won't show up in both of the other two sub-lists.

Grasping the Dow Jones 65 Composite Average

The combination of the Dow Jones Industrial, Transportation, and Utility averages used to be a broad measure of the U.S. economy, as those sectors were once the largest part of economic production. This is not true anymore, as industries like technology, healthcare, and finance presently remember probably the largest companies for the world.

While the DJIA has remembered for recent years a few additional modern companies in its "industrial" average (like Microsoft, Apple, and Intel), a majority of the Dow Jones 65 stocks are centered around traditional or old-line organizations, and subsequently don't seem to address a broad measure of economic performance.

The Dow Jones averages are all price-weighted indexes. For this type of index, stocks with higher prices will influence the heading of the average more than lower prices, no matter what the real size of the company. In a price-weighted index, a stock that increments from $110 to $120 will greaterly affect the index than a stock that increments from $10 to $20, even however the percentage move is greater than that of the higher-priced stock. Higher-priced stocks apply a greater influence on the index's, or the basket's, overall heading.

To compute the value of a simple price-weighted index, find the sum of the share prices of the individual companies, and gap by the number of companies. In certain averages, this divisor is adjusted to keep up with continuity in the event of stock splits or changes to the rundown of companies remembered for the index. Most broad-market indexes, paradoxically, are weighted by market capitalization, like the Nasdaq 100 Index and S&P 500 Index.

Representative Sample of the Dow Jones 65 Composite Average

A significant number of the 65 companies are household names. Coming up next are a portion of the companies in every one of the three sectors:

• Industrial sector: Boeing, Caterpillar, Exxon Mobil, Johnson and Johnson (J&J), United Technologies, Walt Disney
• Transportation sector: American Airlines, Delta Airlines, Landstar System, Norfolk Southern, Southwest Airlines, United Parcel Service (UPS)
• Utility sector: America Electric Power, American Water Works, Centerpoint Energy, Dominion Resources, Edison International, NextEra Energy

Features

• Specifically, the index is contained each of the stocks in the Dow Jones Industrial, Transportation, and Utility indexes.
• The Dow Jones 65 Composite Average is an equity index including 65 of the most powerful publicly traded companies in America.
• Likewise with its sub-records, the Dow 65 is a price-weighted index.