Dow Jones, or more precisely, Dow Jones & Company, is one of the largest business and financial news companies in the world. While the Dow Jones Industrial Average tracks publicly owned corporations, Dow Jones & Company is not a public company itself.

Key Takeaways

  • Dow Jones & Company is one of the largest business and financial news companies in the world.
  • Dow Jones started the Dow Jones Industrial Average (DJIA) as well as many other indexes.
  • The DJIA tracks publicly-owned corporations and is one of the most-watched stock indexes in the world.
  • Dow Jones sold the DJIA and its other indexes to S&P Dow Jones Indices LLC, a joint venture between S&P Global and the CME Group.

How Dow Jones & Company Began

The firm was founded in 1882 by Charles Dow, Edward Jones, and Charles Bergstresser. In 1889, they founded The Wall Street Journal, which remains one of the world's most influential financial publications.

Dow was known for his ability to effectively explain complicated financial news to the public. He believed that investors needed a simple benchmark to indicate whether the stock market was on the rise or the decline. Dow chose several industrial-based stocks for the first index, and the first reported average was 40.94.

Dow Jones Industrial Average

It is easy to confuse Dow Jones with the Dow Jones Industrial Average (DJIA). Often referred to as "the Dow," the DJIA is one of the most-watched stock indexes in the world, containing companies such as Apple, Boeing, Microsoft, and Coca-Cola.

The DJIA initially launched with just 12 companies that were based mostly in the industrial sectors. The companies operated in railroads, cotton, gas, sugar, tobacco, and oil. The performance of industrial companies is often seen as synonymous with that of the overall economy, making the DJIA a key measure of broader economic health. Although the economy's health is now tied to many additional sectors, the DJIA is still seen as a key barometer of the well-being of the U.S. economy.

The table below alphabetically lists the companies included in the DJIA as of August 2020:

Dow Jones Industrial Average Components
Company Symbol Year Added
3M MMM 1976
American Express AXP 1982
Amgen AMGN 2020
Apple Inc. AAPL 2015
Boeing BA 1987
Caterpillar CAT 1991
Chevron CVX 2008
Cisco Systems CSCO 2009
The Coca-Cola Company KO 1987
Dow Inc. DOW 2019
Goldman Sachs GS 2013
The Home Depot HD 1999
Honeywell HON 2020
IBM IBM 1979
Intel INTC 1999
Johnson & Johnson JNJ 1997
JPMorgan Chase JPM 1991
McDonald's MCD 1985
Merck & Co. MRK 1979
Microsoft MSFT 1999
Proctor & Gamble PG 1932
Salesforce CRM 2020
The Travelers Companies TRV 2009
UnitedHealth Group UNH 2012
Verizon VZ 2004
Visa V 2013
Walmart WMT 1997
Walgreens Boots Alliance WBA 2018
The Walt Disney Company DIS 1991
30 DJIA companies as of August 2020

Dow Jones (the company) owned the Dow Jones Industrial Average, as well as many other indexes that represent different sectors of the economy, including the oldest index, the Dow Jones Transportation Average, which tracks 20 transportation companies, including airlines and delivery services. Another major index is the Dow Jones Utility Average, which tracks 15 U.S. utility stocks.

In 2012, S&P Dow Jones Indices LLC bought the Dow Jones Indexes. S&P Dow Jones is a joint venture between controlling member S&P Global and the CME Group, which also owns the S&P 500 Index, among other indexes.

In the world of finance, you'll often hear people ask, "How did New York do today?" or "How did the market perform today?" In both cases, these people are likely referring to the DJIA as it is the most widely-used index, above both the S&P 500 Index, which tracks 500 stocks and the Nasdaq Composite Index, which includes more than 2,500 U.S. and international equities.