DEFINITION of 'Dow Jones 65 Composite Average'

The Dow Jones 65 Composite Average is an index comprised of 65 large public companies in the industrial, transportation and utility sectors. The Dow Jones 65 Composite, like the three sub-indexes, is price-weighted.

BREAKING DOWN 'Dow Jones 65 Composite Average'

The Dow Jones 65 Composite Average consists of the 30 stocks that form the Dow Jones Industrial Average (DJIA), 20 stocks that make up the Dow Jones Transportation Average, and 15 stocks of the Dow Jones Utility Average.

All of the Dow Jones averages are price-weighted indexes. For this type of index, stocks with higher prices will influence the direction of the average more than lower prices, regardless of the actual size of the company. Most broad market indexes, by contrast, are weighted by market capitalization, such as the Nasdaq 100 Index and S&P 500 Index.

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 lion's share of economic production. This is no longer the case, as industries such as technology, healthcare and finance now include some of the largest companies in the world. While the DJIA has, in recent years, included some modern companies in its "industrial" average (such as Microsoft, Apple and Intel), a majority of the Dow Jones 65 stocks are focused in old-line businesses, and therefore do not appear to represent a broad measure of economic performance.

Representative Sample of the Dow Jones 65 Composite Average

Many of the 65 companies are household names. The following are some of the companies in each of the three sectors:

Industrial sector: Boeing, Caterpillar, Exxon Mobil, Johnson & Johnson, United Technologies, Walt Disney

Transportation sector: American Airlines, Delta Airlines, Landstar System, Norfolk Southern, Southwest Airlines, United Parcel Service

Utility sector: America Electric Power, American Water Works, Centerpoint Energy, Dominion Resources, Edison International, NextEra Energy

RELATED TERMS
  1. Dow Jones U.S. Total Market Index

    The Dow Jones U.S. Total Market Index is a market-capitalization-weighted ...
  2. Dow Jones Wilshire Mid-Cap Index

    The Dow Jones Wilshire Mid-Cap Index is a market-capitalization ...
  3. Dow Jones Industrial Average (DJIA) ...

    The Dow Jones Industrial Average (DJIA) yield is the aggregate ...
  4. Dow Jones Asian Titans 50 Index

    Dow Jones Asian Titans 50 Index is a market capitalization-weighted ...
  5. Broad-Based Index

    A broad-based index is designed to reflect the movement of the ...
  6. Dow Jones Wilshire Small-Cap Index

    The Dow Jones Wilshire Small-Cap Index is the former name of ...
Related Articles
  1. Insights

    Why You Need To Know About S&P Dow Jones Indices

    This Article introduces the S&P Dow Jones Indices (SPDJI), available variant categories and index trading advantages
  2. Investing

    Understanding and Playing the Dow Jones Industrial Average

    In this article, learn strategies for investing in this price-weighted index (Dow Jones Industrial Average) and how to interpret its movements.
  3. Trading

    Dow Theory and the Primary Trend

    WIth three Dow Jones indexes resolving their year-to-date ranges to the upside, the market appears to be headed for higher prices.
  4. Investing

    Dow Theory Gores Stock Market's Bears

    Bear Hunting: The Dow Jones Transportation Average's new high is a bullish indicator
  5. Investing

    Dow Touches 19,000

    As markets continue their run higher, investors wonder what the next stop is.
  6. Investing

    RWR Vs. RWX: Comparing Real Estate ETFs

    The real estate market is still booming in 2016. Discover analyses of two real estate ETFs, and learn about the similarities and differences between them.
  7. Investing

    A Different Way to the Dow

    The Dow Jones Industrial Average is one of the most widely followed equity indexes, but this ETF offers a different approach to the old blue-chip Dow.
  8. Investing

    ETF Impact of GE's Dow Explusion

    General Electric is leaving the Dow. Here's how that will affect ETFs.
  9. Investing

    Top 4 ETFs to Track the Dow in 2018

    Track the blue chip stocks of the DJIA with these four exchange-traded funds.
  10. Insurance

    American Express Returns Vs. DJ Industrial Average

    American Express has handily outperformed the Dow Jones Industrial Average since 2009, but unusual weakness in the last year is taking its toll.
RELATED FAQS
  1. What does the Dow Jones Industrial Average measure?

    The Dow Jones Industrial Average (DJIA) is a price-weighted index that measures the daily price movements of 30 large American ... Read Answer >>
  2. How do you compare the Dow Jones Industrial Average (DJIA) and the Toronto Stock ...

    See how the Dow Jones Industrial Average and TSX Composite move according to factors in their respective countries and global ... Read Answer >>
  3. Where can I find all of the stocks in the Dow Jones Industrial Average?

    The Historical Components List is the best place to learn about all 30 stocks in the Dow Jones Industrial Average. Read Answer >>
  4. When was the Dow Jones Industrial Average first calculated?

    Charles Henry Dow was born on a farm in Connecticut on November 6, 1851. Farming didn't suit Charles Dow, however, so he ... Read Answer >>
  5. What are these points that the Dow is always gaining or losing?

    Points on the Dow represent dollars and show whether the stocks of the 30 companies that make up the index went up or down ... Read Answer >>
  6. Where was the Dow Jones when Obama took office?

    What was the value of the Dow Jones Industrial Average on Jan. 20, 2009, inauguration day for President Obama, and how it ... Read Answer >>
Trading Center