What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average (DJIA) is a stock market index that follows the performance of 30 prominent, publicly traded stocks. It is used as a general indicator of the stock market performance. It is sometimes referred to as the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow.

The 30 companies that make up the DJIA (Dow components) are no longer industrial companies but represent several different sectors including banking, food, materials, computer technology, entertainment or consumer goods. A few of the Dow components are: Alcoa, Bank of America, Walt Disney, Intel, 3M Company and Coca-Cola.