The Dow Jones Industrial Average is the oldest stock market index in the world and consists of 30 blue-chip stocks and is administered by Standard & Poor’s. The composition of the index has changed numerous times over its history and now consists of the following companies:

While the composition of the DJIA is subject to change, many of the components have remained largely unchanged over the years. 

Price Weighting

Unlike many other indices, the Dow Jones Industrial Average is a price-weighted index. This means that the stocks with the highest price per share have a more significant influence on the performance of the index. 

Changes in the stock prices of higher-priced components have a greater impact on the index's movements.

Market Barometer

The Dow is often used as an indicator of the overall health and sentiment of the U.S. stock market. When the Dow is rising, it is generally interpreted as a positive sign for the economy and investor confidence, while a declining Dow can be seen as a sign of market concerns.

The components of the Dow are some of the largest employers in the United States, which also means that their performance can have an outsized impact on the state of the U.S labor market.

Limitations

The Dow's price-weighted methodology has limitations. It does not account for the market capitalization of its components, which can lead to distortions.

Other indices, like the S&P 500, use market capitalization weighting, which is considered a more accurate reflection of the stock market's overall performance.

Sector Indices

While the Dow Jones Industrial Average is the main index under the Dow banner, S&P also provides sector indices to offer a narrow view of the specific sectors that make up the DJIA, such as:

• The Dow Jones U.S. Consumer Services Capped Index 
• The Dow Jones U.S. Financials Capped Index
• The Dow Jones U.S Real Estate Capped index
• The Dow Jones U.S. Technology Capped Index 

These indices include companies that are otherwise not part of the Dow Jones Industrial Average and are price-weighted indices that track the performance of specific sectors of the U.S. stock market

• The Dow Jones Industrial Average is one of the most important benchmarks of the United States stock market
• The index consists of 30 blue chip stocks from various industries
• The DJIA is a price-weighted index, which means that the stocks with the hughes price have a larger effect on the performance of the index
• The Dow Jones is managed by Standard & Poor’s, which is also behind the S&P 500 index