At the end of each stock market day news reporters will give you the results of the Dow 30 stocks. You probably have wondered what exactly does the Dow Jones Industrial Index consist of?
The list of companies that are the Dow 30 stocks are companies you will recognize. The Dow Jones Industrial is used by most to measure the stock market and economy in the United States.
The Dow 30 stocks are used as a stock market barometer, but I would suggest to use the S & P 500 as your measuring stick. The Dow 30 stocks are only 30 large cap companies while the S & P 500 is a much broader index that looks at 500 companies and creates a better picture of the overall stock market.
So ignore the news reports of the Dow 30 stocks and look for the S & P 500 to guide your thoughts on the overall stock market condition.