Dow 20,000
When the Dow Jones Industrial Average (DJIA) was first published in 1896 by Charles Dow, the index stood at a level of 62.76. On Wednesday, 121 years later, the DJIA closed above 20,000 for the first time in its history! After inching closer over the course of several weeks and climbing within fractions of a point from 20,000 last Friday, the Dow opened on a strong note Wednesday and charged higher as the day went on.
Though 1,000-point gains are usually few and far between, the Dow blew through the 19,000 mark and reached 20,000 after only 42 trading days. Only once in the index’s history has it risen at a faster clip, when the index climbed from 10,000 to 11,000 back in 1999.
When the Dow Jones Industrial Average was created in 1896, it had about a dozen industrial stocks. The average expanded to 20 stocks in 1916 and 30 in 1928, where it remains today. Over the years, the index has seen a lot of turnover in its history - and only one of the original 12 members continues to hold a spot in it; General Electric.
Apple's addition to the current list of 30 American conglomerates, in March 2015, shows just how far the index has come. It's no longer focused only on "industrial" stocks as we now have technology, financial services, healthcare, and consumer cyclical companies in the mix.
Since the DJIA first hit a level of 1,000 in 1972, we have seen an average annual return of 9.6%. While the DJIA is a healthy indicator of domestic businesses, it does not represent what is taking place internationally. We continue to monitor the broader markets on a daily basis and welcome any questions you may have in regards to the Dow Jones or your investment accounts moving forward.
Sources:
http://www.1stock1.com/1stock1_139.htm
http://money.usnews.com/investing/articles/2016-12-19/5-things-everyone-should-know-about-dow-20-000
