Dow Jones Transportation Average

The Dow Jones Transportation Average (also called " Dow Jones Transports "; DJTA ) is a stock index in the U.S. and comprising 20 of the largest transportation companies listed on the New York Stock Exchange. He was on 3 July 1884 by Charles Dow, co-founder of the publishing house Dow Jones, first published in the "Customers ' Afternoon Letter".

Calculation

The Dow Jones Transportation Average ( Đạt ) is a price index and includes 20 of the largest U.S. carriers on the New York Stock Exchange (NYSE). It is calculated without dividends, subscription rights and special distributions, that is, it is a price-weighted index. The Index will be determined solely on the basis of share prices and adjusted only to income from subscription rights and special. In case of stock splits and share consolidations, the index is adjusted by correction factors.

The calculation is based on the summation of the individual share prices and the subsequent division by the number of constituents. Each of the 20 companies in the Đạt is therefore weighted equally - with 5%. With many other stock market indices, such as the DAX, this is different. Also, in the calculation of Đạt does not matter what percentage of the shares are in free float.

The inclusion of companies in the Đạt and exclusion from the Đạt does not follow fixed rules, but subject to the discretion of the publisher of The Wall Street Journal. The calculation is during NYSE trading hours 9:30 to 16:00 local time ( 15:30 to 22:00 CET) updated every second.

Leading indicator for the U.S. economy

The Dow Jones Transportation Average is valid after the Dow Theory as a leading indicator of the U.S. economy and therefore the stock markets. Notably, some technical analysts deal with the index. The economic development is reflected in the order situation of logistics companies. Required materials must be brought in the production, long before the final product is transported to the end user. Therefore, the transport index is considered by many analysts as a leading indicator of economic development.

Significant at the Dow Theory is not only the transport index, but also the Dow Jones Industrial Average. A turnaround is only considered present if both the shares of industrial companies as well as the shares of the transport companies their height or low points no longer confirm the transport shares have a leading character. In the Western world the American Charles Dow is considered the founder of technical analysis. He published his Dow Theory on the chart analysis in a series of articles from 1884 in the Wall Street Journal.

Another leading indicator of the logistics industry is the Baltic Dry Index (shipping ), an important price index for the worldwide shipping of main cargo (mainly coal, iron ore and grain ) on standard routes.

History

Historical Overview

In order to obtain a benchmark for the assessment of the share price fluctuations, Charles Dow developed the first U.S. equity index, the "Dow Jones Average". It was the predecessor of the Dow Jones Transportation Average. The index was first published on July 3, 1884 in the "Customers ' Afternoon Letter" and initially consisted of eleven values. Nine stocks were railroads and two industrial companies ( the Steamship Company Pacific Mail Steamship Company and the money transfer company Western Union).

In the fall of 1896, the original Dow Jones Average was adjusted for the industrial company and renamed " Dow Jones Railroad Average" ( DJRA ). The DJRA launched on September 8, 1896 at 48.55 points. On January 2, 1970, the index was given its present name "Dow Jones Transportation Average " ( DJTA ).

A milestone in the development was the 1st March 1983 as the first index ended trading above the 500 -point mark. On 8 June 1984, the DJTA closed for the first time surpassed the mark of 1,000 points and on 18 September 1995 on the border of 2,000 points. The Dow Jones Transportation Average also marked in the following years further record highs. On 6 August 1997, he finished first trade above the 3,000 -point mark.

On 12 May 1999, the index reached a low of 3686.00 points, which remained an all-time high for half a decade. Had the bursting of the speculative bubble in the technology sector ( dotcom bubble ) also affect the Dow Jones Transportation Average. He fell to a low of 1942.19 points to 11 March 2003. This was compared to the 12th May 1999, a decline of 47.3 percent.

The March 11, 2003 marks the end of the descent. As of spring 2003, the index was back on the way up. On 9 November 2005, the DJTA closed for the first time above the 4,000 -point mark. The 5,000-point mark overcame the index for the first time on February 2, 2007. On 19 July 2007, the Dow Jones Transportation Average ended trading at 5446.49 points. The increase since March 11, 2003 is 180.4 percent.

In the course of the international financial crisis in the U.S. real estate crisis originated in the summer of 2007, the index began to fall again. On 7 October 2008, the DJTA finished with 3898.15 points below the limit of 4,000 points. At the lowest level since March 31, 2003, the Dow Jones Transportation Average fell on March 9, 2009, when he finished trading with 2146.89 points. Since the peak on 19 July 2007, this represents a decrease of 60.6 percent.

The March 9, 2009 marked the end of the descent. From the spring of 2009, the Index has again recovered strongly. On 7 July 2011, the Dow Jones Transportation Average closed at 5618.25 points. The gain since March 9 2009 amounted to 161.7 percent. The slowdown in the global economy and the intensification of the euro crisis led to a fall in the American transport index. On 3 October 2011, the stock market barometer ended trading at 4038.73 points. The loss since its peak on July 7, 2011 amounts to 28.1 percent.

The announcement of new bond purchase programs of the European Central Bank and the U.S. Federal Reserve in principle unlimited extent led to a recovery of prices in the stock market. The monetary stimulus played a greater role in price formation, as the global economic slowdown and the position of the company. On January 17, 2013, the index with a closing level of 5681.28 points, an all time high. The profit since the low on October 3, 2011 was 40.7 percent.

Highs

The overview shows the all-time highs in the Dow Jones Transportation Average.

Milestones

The table shows the milestones of the Dow Jones Transportation Average.

The best days

The table shows the best days of the Dow Jones Transportation Average since 1896.

The worst day

The table shows the worst days of the Dow Jones Transportation Average since 1896.

Annual development

The table shows the annual performance of the Dow Jones Transportation Average since 1896.

Composition

The Dow Jones Transportation Average consists of the following 20 values ( as at 28 February 2011):

International Securities Identification Number Wertpapierkennnummer Tickersymbol Stock market index Dow Jones & Company Pre-emption right Weight function Economic indicator Delaware, Lackawanna and Western Railroad AMR Corporation Con-way Overseas Shipholding Group Ryder Southwest Airlines Union Pacific Railroad United Continental Holdings Dow Jones Composite Average Dow Jones Utility Average Matson, Inc.

293371