Dow Jones Utility Average

The Dow Jones Utility Average is a stock index of the 15 largest listed utility companies in the United States. It was first published in 1929 by the publishing house of Dow Jones, making it the third-oldest stock index in the United States. Older are just the Dow Jones Transportation Average of 1884 and the Dow Jones Industrial Average from 1896.

Calculation

The Dow Jones Utility Average is a price index and comprises 15 leading U.S. companies in the utility industry 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 shares in the index. The number of shares in free float is not considered. The inclusion of companies in the Dow Jones Utility Average Index and exclusions 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 stock market

The Dow Jones Utility Average, with its catering stocks and the Nasdaq Composite are considered good indicators under the equity indices. Listed both on a 18 -week low is usually expected to falling prices worldwide. Listed them both on a 13 -week high, is expected to have a upward trend.

The profits of the utilities usually subject to large fluctuations. This fact makes the Dow Jones Utility Average to a calculable factor in determining whether shares in proportion to income securities tend to be under overvalued or undervalued. In contrast to the shares of the Dow Jones Utility Average, the Nasdaq Composite includes very dynamic company. Technology shares are subject to much greater price fluctuations and therefore react very quickly to an impending bear market or an imminent bull market.

Both indices give good signals for the entire stock market in combination. For a change of trend up or down, the Dow Jones Utility Average and the Nasdaq Composite must point in the same direction. Shows only one of the two indices a turnaround to, nor shall the former signal.

1991 John Murphy described the Dow Jones Utility Average in "Inter- Market Technical Analysis " as a " leading indicator for share price performance ." With his book, Murphy created a new branch of technical analysis: the intermarket analysis.

History

Historical Overview

The index was launched on January 2, 1929, 18 values. Six months later, on July 1, 1929, 20 shares were listed in the Dow Jones Utility Average. On 2 June 1938, the number of companies listed has been reduced to 15.

A milestone in the development of the Dow Jones Utility Average was June 6, 1929, when the index with 100.37 points for the first time finished trading above the mark of 100 points. On 30 June 1986, the index overcame with a final score of 200.10 points for the first time the mark of 200 points. The mark of 300 points fell on September 23, 1998, when the index closed at 302.98 points. The Dow Jones Utility Average also marked in the following years further record highs. On 2 October 2000, the index closed at 401.47 points for the first time surpassed the mark of 400 points. Until 26 December 2000, he rose to a high of 416.11 points, which was 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 Utility Average. He fell to a low of 167.57 points to 9 October 2002. That was in December 2000, a decline of 59.7 percent. From the autumn of 2002, the index was back on the way up. With 416.23 points, he completed on 1 September 2005 on its high of December 2000. On 26 March 2007, the index overcame the first time the 500 -point mark when he finished with 502.81 points. On 21 May 2007, the Dow Jones Utility Average marked with a final score of 535.72 points, an all time high.

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 October 6, 2008 since May 25, 2006, he graduated with 389.07 points for the first time under the limit of 400 points. At the lowest level since August 31, 2004, the Dow Jones Utility Average fell on March 9, 2009, when he finished trading with 290.68 points. Since the all-time high of 21 May 2007, this represents a decrease of 45.7 percent.

The March 9, 2009 marked the end of the descent. From the spring of 2009, the market index was back on the way up. Until July 30, 2012, it rose by 70.8 percent to a closing level of 496.56 points.

Highs

The overview shows the all-time highs of the Dow Jones Utility Average.

Milestones

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

The best days

The table shows the best days of the Dow Jones Utility Average.

The worst day

The table shows the worst days of the Dow Jones Utility Average.

Annual development

The table shows the annual performance of the Dow Jones Utility Average.

Composition

The Dow Jones Utility Average consists of the following 15 values ​​(as of December 2013):

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