If you’ve heard phrases like “the market is up,” they were probably referencing the Dow Jones Industrial Average, or more simply, “The Dow.” This industrial average index is something every investor should be familiar with. Comprising a wide range of stocks, it offers invaluable insights that can guide your decisions, whether you’re purchasing stocks from The Dow or not.
- The DOW 30 stocks are considered representative of the U.S. stock market.
- The stocks selected for the DOW 30 cover the most dominant sectors of the American economy.
- The index was created by Charles Dow as a proxy for the American market.
Understanding DOW 30 Stocks
DOW 30 stocks are those within the Dow Jones Industrial Average (DJIA) index. This index follows companies that are publicly traded on the New York Stock Exchange and NASDAQ. This is one of the most closely watched indices for investors, as it was created to offer a well-rounded representation of the overall stock market. The 30 companies highlighted here represent everything from entertainment to petroleum to health care and home goods. Evaluating these companies will give you a better idea of how The Dow works and what information you can glean from it.
American Express Co (AXP)
The American Express Company, or Amex, is a multinational financial services corporation that specializes in providing charge cards, credit cards, and travel services. The company’s segments include:
- Global Consumer Services Group.
- Global Commercial Services.
- Global Merchant and Network Services.
Apple Inc. (AAPL)
Apple Inc. is a technology company that creates personal computers, smartphones, and portable music players. Its iPhone, iPod, and Apple computers have earned a cult following and global popularity. Apple’s segments include:
- The Americas.
- Greater China.
- Rest of Asia Pacific.
Boeing Co. (BA)
The aerospace company Boeing is a major player in the commercial airline industry. Boeing also produces aircraft for numerous other purposes with segments that include:
- Commercial Airplanes.
- Network and Space Systems.
- Defense, Space, and Security.
- Global Services and Support.
Caterpillar Inc. (CSCO)
Caterpillar Inc. manufactures equipment for mining and construction. It supplies diesel-electric locomotives, industrial gas turbines, diesel engines, and gas engines. In operation since 1925, the company has a long-standing history of supplying reliable, high-quality machinery. Its segments include:
- Construction Industries.
- Resource Industries.
- Financial Products.
- Energy and Transportation.
Cisco Systems Inc. (CSCO)
Cisco Systems is a technology company that designs and sells products for networking, collaboration, and security. The company provides applications, cloud computing, infrastructure platforms, data center products, wireless networking tools, and technical support. Its geographic segments include:
- Europe, Middle East, and Africa.
- Asia Pacific.
Chevron Corp. (CVX)
Chevron Corp. works with energy and chemical operations, providing administrative and technical support that include financial management services. It works with two primary segments. The Upstream segment focuses on the production of crude oil and natural gas. The Downstream segment works primarily on the refinement of crude oil.
Exxon Mobil Corp. (XOM)
The energy company Exxon Mobil Corporation works with the production, transportation, and sale of natural gas and crude oil. Its Upstream segment explores and produces natural gas and crude oil while the Downstream segment manufactures and sells petroleum products.
Goldman Sachs Group Inc. (GS)
A global financial company, Goldman Sachs Group Inc. offers investment banking, investment management, and securities. Founded in 1869, this long-standing company has established itself as a leader in its industry. Goldman Sachs’ segments include:
- Investment Baking.
- Institutional Client Services.
- Investment Management.
- Investing and Lending.
Home Depot Inc. (HD)
A well-known home improvement retailer, Home Depot supplies customers with tools, building materials, lawn and garden products, home decor items, installation services, and equipment rentals. Home Depot has been in business since 1978.
International Business Machines Corp. (IBM)
IBM is a diverse technology services company that supplies everything from descriptive analytics and big data processing to application management and IT infrastructure services. The company’s segments include:
- Cognitive Solutions.
- Global Business Services.
- Technology Services and Cloud Platforms.
- Systems and Global Financing.
Intel Corp. (INTC)
The Intel Corporation is an electronic technology company that designs and manufactures innovative products and technologies that include cloud-based solutions and products within the internet of things. Intel’s segments include:
- Client Computing Group.
- Data Center Group.
- Internet of Things Group.
- Non-Volatile Memory Solutions Group.
- Intel Security Group.
- Programmable Solutions Group.
- All Other and New Technology Group.
Johnson & Johnson (JNJ)
A health technology holding company, Johnson & Johnson develops and manufactures a wide range of products for everything from skin care and baby care to oncology therapies and surgical products. It operates within three diverse segments:
- Medical Devices.
Coca-Cola Co. (KO)
The beverage behemoth Coca-Cola develops, manufactures, and sells more than 500 nonalcoholic drinks, including sodas, waters, flavored waters, juices and juice drinks, coffees, sports drinks, energy drinks, and teas. Its brands include Coca-Cola, Diet Coke, Sprite, and Fanta. Coca-Cola’s segments are:
- Europe, Middle East, and Africa.
- North America.
- Latin America.
- Asia Pacific.
JPMorgan Chase & Co. (JPM)
The financial holding company JPMorgan Chase & Co. provides financial services through four segments, including:
- Consumer and Community Banking.
- Corporate and Investment Bank.
- Commercial Banking.
- Asset Management.
McDonald’s Corp. (MCD)
McDonald’s Corp. operates and franchises the McDonald’s restaurant chain. Ray Kroc founded the corporation in 1955. Its segments include:
- International Lead Markets.
- High Growth Markets.
- Foundational Markets.
3M Co. (MMM)
The technology company 3M manufactures industrial and consumer products across a wide range of industries. It produces everything from floor matting to acoustic systems and drug delivery systems to electronic displays. 3M’s segments include:
- Safety and Graphics.
- Health Care.
- Electronics and Energy.
Merck & Co. Inc. (MRK)
Merck & Co. Inc. is a health technology company that provides vaccines, biologic therapies, and prescription medication. Its segments include:
- Health Care Services.
- Animal Health.
Microsoft Corp. (MSFT)
Microsoft is a technology company that offers software products and services. It develops, licenses, and supports operating systems, personal computers, entertainment consoles, and more. The company’s segments are:
- Productivity and Business Processes.
- Intelligent Cloud.
- More Personal Computing.
Nike Inc. (NKE)
Nike is an apparel footwear designer and manufacturer that specializes in athletic products. It produces items for running, basketball, soccer, action sports, golf, baseball, cricket, lacrosse, wrestling, walking, tennis, and volleyball. Nike’s major segments are:
- North America.
- Western Europe.
- Central and Eastern Europe.
- Greater China.
- Emerging markets.
Pfizer Inc. (PFE)
Pfizer Inc. is a pharmaceutical company that specializes in vaccines, medicines, and the consumer care industry. The company creates products for oncology, internal medicine, immunology, and more. Its segments include Pfizer Innovative Health and Pfizer Essential Health.
Proctor & Gamble Co. (PG)
The Proctor & Gamble Company manufactures a variety of household and personal care products for brands like Olay, Head & Shoulders, Venus, Dawn, Cascade, Mr. Clean, Charmin, and Bounty, among others. Its primary segments are:
- Health Care.
- Fabric and Home Care.
- Baby, Feminine, and Family Care.
Travelers Companies Inc. (TRV)
The Travelers Companies Inc. is a holding company that supplies insurance products and services including personal property, commercial, and casualty insurance. Its business segments are:
- Personal Insurance.
- Business Insurance.
- Bond and Specialty Insurance.
UnitedHealth Group Inc. (UNH)
UnitedHealth Group Inc. is a managed health care company that provides software, data consultancy, and health care coverage through its four segments, which include:
United Technologies Corp. (UTX)
United Technologies Corp. offers products and services for the aerospace and building systems industries. Its segments provide a broad range of solutions, including health and air conditioning, elevators, aircraft engines, and more. Its segments include:
- Pratt and Whitney.
- Collins Aerospace Systems.
Verizon Communications Inc. (VZ)
Verizon Communications Inc. is a holding company that provides communications, entertainment, and information products and services through its subsidiaries. It offers solutions to consumers, government agencies, and businesses. Verizon maintains just two segments: Wireless and Wireline.
Visa Inc. (V)
The payment technology company Visa Inc. provides efficient solutions for global commerce. It maintains a transaction processing network and retail electronic payment network. Visa offers merchant products, digital products, and transaction processing.
Walgreens Boots Alliance Inc. (WBA)
Walgreens Boots Alliance Inc. was founded in 1901 and provides drug store products through several brands, including Boots Pharmaceuticals, Liz Earle, Botanics, Soap & Glory, No7, Duane Reade, and Walgreens. Its segments include:
- Retail Pharmacy USA.
- Retail Pharmacy International.
- Pharmaceuticals Wholesale.
Walmart Inc. (WMT)
Walmart Inc. was founded in 1945. The company operates under several brands, including Walmart, Wal-Mart, Walmart Neighborhood Market, and walmart.com. It maintains supermarkets, supercenters, and warehouse clubs both in the United States and internationally. Walmart Inc.’s segments include:
- Walmart U.S.
- Walmart International.
- Sam’s Club.
Walt Disney Co. (DIS)
The Walt Disney Company is a major entertainment company that maintains cable and broadcast networks, radio stations, television studios, and theme parks. The company also produces entertainment content in the form of books, movies, magazines, digital content, games, and more. Its segments are:
- Media Networks.
- Parks and Resorts.
- Studio Entertainment.
- Consumer Products and Interactive Media.
Dow Inc. (DOW)
Dow Inc. is a material science company that supplies products for home and personal care, packaging, coating, and more. Its primary segments include:
- Performance Materials and Coatings.
- Industrial Intermediates and Infrastructure.
- Packaging and Specialty Plastics.
Evaluating these companies via The Dow will give you a solid idea of how the market is currently trending so you can make the most informed trading decisions possible. To learn more about trading, download one of our e-books or sign up for a webinar.