The Dow 30 does not gather the respect versus the broader indices. Some of the criticisms include:
- The DJIA tracks only 30 large companies, while the S&P 500 includes 500, leading critics to argue that the DJIA neglects companies of various sizes and doesn't accurately represent the economy.
- Being price-weighted, the DJIA gives more weight to companies with higher stock prices rather than larger market caps, which critics say misrepresents company performance.
- Additionally, the DJIA's components are selected by a committee without formal rules, leading to irregular changes and no consideration of industry or sector impact on returns.
Nevertheless,, it remains perhaps the most quoted stock index standard when Mom and Pop watch the nightly news.
The Dow is currently trading at session highs up 743.4 or 1.85% at 40,954. The gain is the largest one day gain since June 2, 2023 when the index rose 2.12%.
The gainers are led by UnitedHealth who announced better-than-expected earnings today. The top 5 include:
- UnitedHealth (UNH): $547.25, +6.19%
- Caterpillar (CAT): $361.86, +4.65%
- Boeing (BA): $186.12, +3.91%
- Home Depot (HD): $368.84, +2.90%
- Dow (DOW): $54.68, +2.65%
The index is on pace for its 2nd record closing day in a row after closing above the May 17 high at 40003.60 yesterday. The index is also up for 5 consecutive days.
The S&P index is also on pace to close at a new record level. It currently trades up 33.12 points or 0.58% at 5663.80.
The NASDAQ index has been trading above and below unchanged but currently trades up 21 points or 0.12% at 18493. Unlike the S&P and the Dow it has not reached a new record level since last Wednesday when the index closed at 18647.45.
The biggest mover today however is the Russell 2000 which is up 75.75 points or 3.46% at 2262.77. Just three days ago the index rose by 3.57% as well. Since July 9, the index is up 11.49% as investors shift from the large-cap stocks to the small-cap stocks on hopes that the Trump/Vance ticket will better support small businesses, by lowering corporate taxes and having less regulation.
