The Dow Jones Industrial Average was created in 1896 by Charles Dow and originally consisted of 12 companies: American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennessee Coal and Iron, U.S. Leather and U.S. Rubber. At the time, these companies represented each sector of the market, thus the Dow Jones illustrated the overall performance of the market in the United States.
At the end of a recession created by the collapse of Philadelphia and Reading Railroads in 1893, these companies represented the stronghold of the nation. Even with the trouble from the railroads, coal remained the dominant fuel for transportation, while gas and electric were growing in demand. Crops were a major export and source of revenue for the economy, while also providing sustenance.
Changes to the Dow
As the country's industrial age came to a close, electricity became the dominant energy source that led to numerous technological advancements, and the economy shifted toward providing more consumer goods. With these changes, all but General Electric ceased to exist.
In 1929, the Dow was expanded to include 30 companies. These companies have changed over the years, but the index still represents the U.S. market in general. The companies included accounts for only about a quarter of the market; however, the index accurately reflects trends across the entire market.
2018 Companies in the Dow
Below is a list of the companies included in the Dow as of September 2018. They are listed by length of time on the index, with the newest – Walgreens Boots Alliance – having been added June 26, 2018.
- ExxonMobil
- Procter & Gamble
- DowDuPont
- United Technologies
- 3M
- IBM
- Merck
- American Express
- McDonald's
- Boeing
- Coca-Cola
- Caterpillar
- JPMorgan Chase
- Walt Disney
- Johnson & Johnson
- Walmart
- Home Depot
- Intel
- Microsoft
- Pfizer
- Verizon
- Chevron
- Cisco Systems
- Travelers Cos.
- UnitedHealth Group
- Goldman Sachs
- Nike
- Visa
- Apple
- Walgreens Boots Alliance
For related reading, see "Understanding and Playing the Dow Jones Industrial Average."