Charles Dow and the Creation of the Averages
Chronology and Evolution of the Dow Jones Averages [Back To Top]
"DAILY MOVEMENT OF AVERAGES"
"Following is the daily average price of 20 railroad stocks and 12 industrials for 30 days last passed:
|Tuesday, September 8||$35.50||$48.55|
|Wednesday, September 9||35.39||48.56|
|Thursday, September 10||35.58||47.71|
|Friday, September 11||35.30||48.27|
|Saturday, September 12||35.02||47.86|
|Monday, September 14||34.86||47.66|
|Tuesday, September 15||34.13||47.22|
|Wednesday, September 16||33.32||46.68|
|Thursday, September 17||34.33||47.77|
|Friday, September 18||34.81||47.82|
|Saturday, September 19||35.03||47.91|
|Monday, September 21||35.53||48.65|
|Tuesday, September 22||35.59||48.43|
|Wednesday, September 23||35.78||48.67|
|Thursday, September 24||36.23||49.16|
|Friday, September 25||36.61||49.81|
|Saturday, September 26||36.75||50.21|
|Monday, September 28||36.35||49.80|
|Tuesday, September 29||36.33||50.21|
|Wednesday, September 30||36.05||50.21|
|Thursday, October 1||36.01||50.17|
|Friday, October 2||35.88||50.00|
|Saturday, October 3||35.82||49.86|
|Monday, October 5||35.92||50.10|
|Tuesday, October 6||35.91||49.71|
"Twelve industrial stocks used are: Sugar, Tobacco, Leather preferred, Cotton Oil, Cordage preferred, Rubber com., Chicago Gas, Tennessee Coal & Iron, General Electric, Lead, American Spirits and Laclede Gas.
"The 20 active stocks used are: Erie, Kansas & Texas preferred, Chesapeake & Ohio Minneapolis & St. Louis 2d preferred, Susquehanna & Western preferred, New York Central, Atchinson, CCC & St. Louis, Southern Railway preferred, Missouri Pacific, Jersey Central, Pacific Mail, Northwest, Louisville & Nashville, Western Union, Rock Island, Burlington. St. Paul, Texas & Pacific and Lake Shore."
(Persons interested in extending the present Dow Jones averages backward as far as possible can consider this the beginning of the railroad average (now transportation) provided they bear in mind that there are two industrial stocks included in the list. It should also be kept in mind that, originally, market quotations were all in percentages. On October 13, 1915, the Stock Exchange ruled that all stocks should sell on a dollar share basis. For the sake of continuity, the average of Pennsylvania, Reading and Lehigh Valley, all having $50 par values, was computed on a percentage basis which was obtained by doubling their market quotations.)
October 19, 1896 - Philadelphia & Reading and No. Pacific preferred substituted for Minneapolis & St. Louis 2nd preferred and Texas Pacific in the rail list.
October 26, 1896 - Manhattan Elevated and Wabash preferred were substituted for Pacific Mail and Western Union in the 20 railroads.
(This marked the first time the average was computed entirely of railroad stocks.)
November 10, 1896 - Pacific Mail Steamship substituted for U.S. Rubber in the industrials.
December 23, 1896 - Standard Rope & Twine substituted for U.S. Cordage preferred in the industrials.
January 4, 1897 - N.Y. Ontario & Western substituted for Susquehanna & Western preferred in the rail list which included: [Back To Top]
|Atchison||Missouri Kansas & Texas preferred|
|C.C.C. & St. Louis||New York Central|
|Chesapeake & Ohio||Northern Pacific preferred|
|Chicago & North Western||New York, Ontario & Western|
|Erie||Philadelphia & Reading|
|Jersey Central||Rock Island|
|Lake Shore||St. Paul|
|Louisville & Nashville||Southern Railway preferred|
|Manhattan Elevated||Wabash preferred|
March 24, 1898 - Peoples Gas substituted for Chicago Gas in the industrials.
May 6, 1898 - Metropolitan Traction & Union Pacific preferred substituted for Ontario & Western and Lake Shore.
September 1898 - U.S. Rubber substituted for General Electric in the industrials.
April 21, 1899 - Continental Tobacco, Federal Steel, General Electric, American Steel & Wire substituted for American Spirits Manufacturing, American Tobacco, Laclede Gas and Standard Rope & Twine in the industrials.
May 22, 1899 - Brooklyn Rapid Transit, Denver & Rio Grande preferred and Norfolk & Western preferred substituted for Metropolitan Street Railway, Reading and Erie in the railroads.
April 1, 1900 - Southern Pacific common substituted for Wabash preferred in the railroads.
April 7, 1900 - Union Pacific common substituted for Norfolk & Western preferred in the railroads.
May 27, 1901 - Baltimore & Ohio and Illinois Central substituted for Burlington and South Pacific common in the railroads.
June 24, 1901 - Southern Railway common substituted for Southern Railway preferred in the railroads.
June 29, 1901 - Pennsylvania substituted for Northern Pacific preferred in the railroads.
April 1, 1901 - Amalgamated Copper, American Smelting & Refining, International Paper preferred, U.S. Steel common and U.S. Steel preferred were substituted for American Cotton Oil, Federal Steel, General Electric, Pacific Mail and American Steel & Wire in the industrials.
July 1, 1901 - American Car Foundry and Colorado Fuel & Iron substituted for Continental Tobacco and International Paper preferred in the industrials.
September 20, 1902 - Reading, Canadian Pacific, Delaware & Hudson and Minneapolis & St. Louis were substituted for Missouri, Kansas & Texas preferred, Rock Island, Chesapeake & Ohio and Jersey Central in the railroads.
May 17, 1904 - Southern Pacific common substituted for Minneapolis & St. Louis in the railroads.
June 25, 1904 - Wabash preferred and Metropolitan Street Railway substituted for C.C.C. & St. Louis and Denver preferred in the railroads.
April 1, 1905 - U.S. Rubber 1st preferred substituted for U.S. Leather preferred in the industrials.
April 11, 1905 - Erie substituted for Wabash preferred in the railroads.
May 19, 1905 - Northern Pacific common and Norfolk & Western substituted for Manhattan and Union Pacific preferred in the railroads.
The rail list, now entirely composed of common stocks, had these issues:
|Baltimore & Ohio||New York Central|
|Brooklyn Rapid Transit||No. Pacific common|
|Canadian Pacific||Norfolk & Western|
|Chicago & North Western||Pennsylvania|
|Delaware & Hudson||Reading|
|Illinois Central||Southern Pacific common|
|Louisville & Nashville||Southern Railways common|
|Metropolitan Street Railway||Union Pacific common|
May 4, 1906 - Twin City Rapid Transit substituted for Metropolitan Street Railway in the railroads.
November 7, 1907 - General Electric substituted for Tennessee Coal & Iron in the industrials.
August 25, 1912 - Rock Island and Lehigh Valley substituted for Brooklyn Rapid Transit and Twin City Rapid Transit in the railroads.
May 12, 1912 - Central Leather common substituted for Colorado Fuel & Iron in the industrials.
December 12, 1914 - Chesapeake & Ohio, Kansas City Southern and N.Y. N.H. & Hartford substituted for Chicago & North Western, Missouri Pacific and Rock Island in the railroads.
March 16, 1915 - General Motors substituted for U.S. Rubber 1st preferred in the industrials.
July 29, 1915 - Anaconda substituted for Amalgamated Copper.
October 4, 1916 - A list of 20 industrials, all common, substituted for the old list of 12. National Lead, Peoples Gas, General Motors and U.S. Steel preferred were dropped and 12 new companies added. The list became: [Back To Top]
|American Beet Sugar||General Electric|
|American Car & Foundry||Republic Iron & Steel|
|American Smelting||Texas Co.|
|American Sugar||U.S. Rubber|
|American Telephone & Telegraph||U.S. Steel|
|Anaconda Copper||Utah Copper|
|Central Leather||Western Union|
(At this time (1916) Stock Exchange quotations were all in dollars of percentages, so the fact that Utah had a par of $10 and Westinghouse a par of $50 caused no immediate confusion in the new averages. However, in order to make continuity for the industrial averages, the records of the 20 new stocks were figured backward to the reopening of the Stock Exchange on December 12, 1914, after the war closing, so that the published record of averages is as if the 20 stocks mentioned above had been quoted on the dollar basis from that date.)March 1, 1920 - Corn Products substituted for American Beet Sugar in the industrials.
January 22, 1924 - American Tobacco, Du Pont, Mack Trucks and Sears, Roebuck substituted for Corn Products, Central Leather, Goodrich and Texas Co. in the industrials.
February 6, 1924 - Standard Oil of California substituted for Utah in the industrials.
April 10, 1924 - Delaware, Lackawanna & Western and St. Louis Southwestern substituted for Kansas City Southern and Lehigh Valley in the railroads.
May 12, 1924 - Studebaker non-par and Woolworth $25 par substituted for old Studebaker and Republic Iron & Steel in the industrials.(After the change from 12 to 20 industrials in 1916, Texas Co. reduced its par from $100 to $25. Then, American Locomotive changed from $100 par to non-par, issuing two new shares for one old share. Studebaker changed from $100 par to non-par, issuing two and a half shares of new for one of old. The compilation arising from the Texas, American Locomotive and Studebaker changes brought about new adjustment.
Texas Co. and Corn Products were dropped. American Locomotive was retained at the actual new quotation. These changes, made January 22, 1924, were so fitted into the scheme of quotations that, while the closing prices on a Tuesday averaged 97.41 on the old stocks, the average on the new stocks was 97.23, all being figured on the dollar basis.)
The railroad list as of August 31, 1925, was:
|Baltimore & Ohio||Louisville & Nashville||St. L. Southwestern|
|Canadian Pacific||New York Central||St. Paul|
|Chesapeake & Ohio||New Haven||Southern Pacific|
|Delaware & Hudson||Norfolk & Western||Southern Railway|
|Delaware, Lackawanna & Western||Northern Pacific||Union Pacific|
August 31, 1925 - General Motors, International Harvester, Kennecott, Texas Co. and U.S. Realty were substituted for Anaconda, Baldwin, Du Pont, Standard Oil of Calif. and Studebaker in the industrial list. These changes made no appreciable difference in the averages.
December 7, 1925 - Allied Chemical and Paramount Famous Lasky substituted for U.S. Realty and Westinghouse Electric in the industrials.
December 31, 1925 - Remington Typewriter and Mack Trucks, ex-stock dividend, were substituted for Kennecott and Mack Trucks stock dividend attached in the industrials.
March 16, 1927 - United Drug substituted for Remington Typewriter in the industrials. The industrial list on December 31, 1927, was:
|Allied Chemical||American Locomotive|
|American Can||American Smelting|
|American Car & Foundry||American Sugar|
|American Telephone & Telegraph||Sears, Roebuck|
|American Tobacco||Texas Corp.|
|General Electric||United Drug|
|General Motors||U.S. Rubber|
|International Harvester||U.S. Steel|
|Mack Trucks||Western Union|
|Paramount Famous Lasky||Woolworth|
All stocks used in both the railroad and industrial lists are common stocks. The averages of these stocks are compiled from closing prices. In case there is no sale of a particular stock the last closing is used.
As of December 31, 1927, to obtain the average daily price of the 20 railroad stocks, take the total sum of their closing quotations (with Pennsylvania and Reading doubled) and divide by 20. The industrial average is computed in the same manner except that in certain cases in the past (prior to 1927) attempt was made to compensate or average the averages to make allowances for stock split-ups. Therefore, in order to get the total to be divided by 20, the closing price of American Can is multiplied by 6, that of General Electric by 4, Sears, Roebuck by 4, American Car & Foundry by 2 and American Tobacco by 2.
The present Dow Jones industrial average of 30 stocks began October 1, 1928, when the list was expanded to 30 from 20 and several substitutions were made. On October 1, 1928, the stocks making up the industrial average were:
|Allied Chemical||General Railway Signal||Sears, Roebuck|
|American Can||Goodrich||Standard Oil (N.J.)|
|American Smelting||International Harvester||Texas Corp.|
|American Sugar||International Nickel||Texas Gulf Sulphur|
|American Tobacco B||Mack Truck||Union Carbide|
|Atlantic Refining||Nash Motors||U.S. Steel|
|Bethlehem Steel||North American||Victor Talking Machine|
|Chrysler||Paramount Publix||Westinghouse Electric|
|General Electric||Postum Inc.||Woolworth|
|General Motors||Radio Corp.||Wright Aeronautical|
The divisor on October 1, 1928, was 16.67.
Subsequent changes in stocks making up the industrial average and changes in the divisor, together with the dates, were:
[Back To Top]
|1928 November 5||16.02||Atlantic Refining Split 4 for 1|
|December 26||13.92||International Nickel reorganization|
|1929 January 8||12.11||
|May 1||11.7||Wright-Aeronautical split 2 for 1|
|May 20||11.18||Union Carbide split 3 for 1|
|June 25||10.77||Woolworth split 2 1/2 for 1|
|July 25||10.77||Postum name changed to General Foods|
|September 14||10.47||Curtiss-Wright replaced Wright Aeronautical|
|1930 January 29||9.85||
|1932 May 26||15.46||
|1933 August 15||15.71||
|1934 August 13||15.74||National Distillers replaced United Aircraft|
|1935 November 20||15.1||
|1937 January 8||15.1||Nash Motors name changed to Nash Kelvinator|
|1939 March 14||15.1||
|1945 May 10||14.8||Loew's Inc. split 3 for 1|
|May 11||14.2||Westinghouse Mfg. split 4 for 1|
|October 23||13.6||Sears Roebuck split 4 for 1|
|1946 August 1||13.3||National Distillers split 3 for 1|
|1947 May 16||12.2||Eastman Kodak split 5 for 1|
|June 2||11.76||Johns-Manville split 3 for 1|
|July 14||11.44||Chrysler Corp. split 2 for 1|
|December 3||11.36||American Smelting 20% stock dividend|
|1948 January 19||10.98||Bethlehem Steel split 3 for 1|
|May 17||10.55||Union Carbide split 3 for 1|
|June 7||10.20||Interational Harvester split 3 for 1|
|November 26||10.14||National Steel 10% stock dividend|
|1949 June 3||9.88||U.S. Steel split 3 for 1|
|June 16||9.06||Du Pont split 4 for 1|
|1950 March 22||8.92||Procter & Gamble split 1 1/2 for 1|
|March 31||8.57||National Steel split 3 for 1|
|September 5||7.76||Allied Chemical split 4 for 1|
|October 3||7.54||General Motors split 2 for 1|
|1951 March 12||7.36||Standard Oil of California split 2 for 1|
|May 2||7.33||United Aircraft 20% stock dividend|
|June 12||7.14||Texas Corp. split 2 for 1|
|June 13||6.90||Standard Oil (N.J.) split 2 for 1|
|September 11||6.72||Goodyear split 2 for 1|
|December 3||6.53||American Smelting split 2 for 1|
|1952 May 2||6.16||American Can split 2 for 1; 100% stock dividend|
|1954 June 14||5.92||General Electric split 3 for 1|
|July 1||5.89||United Aircraft distributed 1 share of Chance-Vought for every 3 United Aircraft held|
|1955 January 24||5.76||Goodyear split 2 for 1|
|May 23||5.62||Corn Products Refining split 3 for 1|
|June 3||5.52||U.S. Steel split 2 for 1|
|September 26||5.46||United Aircraft 50% stock dividend (3 for 2)|
|November 10||5.26||General Motors split 3 for 1|
|December 19||5.11||Sears Roebuck split 3 for 1|
|1956 March 19||4.89||Standard Oil (N.J.) split 3 for 1|
|March 26||4.79||Johns-Manville split 2 for 1|
|June 8||4.69||General Foods split 2 for 1|
|June 11||4.56||Texas Co. split 2 for 1|
|June 18||4.452||Standard Oil (Calif.) split 2 for 1|
|June 25||4.351||Procter & Gamble split 2 for 1|
|July 3||4.581||International Paper replaced Loew's Inc.|
|September 11||4.566||American Telephone & Telegraph rights offering (1 share for each 10 held)|
|1957 February 7||4.283||Bethlehem Steel split 4 for 1|
|November 18||4.257||United Aircraft 20% stock dividend (6 for 5)|
|1959 April 14||4.13||Eastman Kodak split 2 for 1|
|1959 December 29||3.824||Goodyear split 3 for 1|
|1960 January 25||3.739||Allied Chemical split 2 for 1|
|February 2||3.659||Westinghouse Electric split 2 for 1|
|May 3||3.569||American Tobacco split 2 for 1|
|May 31||3.48||International Nickel split 2 for 1|
|August 24||3.38||General Foods split 2 for 1|
|December 30||3.28||International Paper Co. split 3 for 1|
|1961 April 10||3.165||Procter & Gamble split 2 for 1|
|August 11||3.09||Texaco split 2 for 1|
|1962 May 1||3.03||American Tobacco split 2 for 1|
|June 5||2.988||Du Pont distributed 1/2 share of General Motors|
|1963 May 13||2.914||Chrysler Corp. split 2 for 1|
|November 21||2.876||Du Pont distributed 36-100 share General Motors stock for each share of Du Pont common held|
|1964 January 13||2.822||Chrysler Corp. split 2 for 1|
|June 18||2.754||F. W. Woolworth split 3 for 1|
|June 23||2.670||American Telephone & Telegraph split 2 for 1|
|November 19||2.615||Du Pont distributed 1/2 share of General Motors|
|1965 March 23||2.543||Sears Roebuck split 2 for 1|
|April 12||2.499||International Harvester split 2 for 1|
|May 24||2.410||Eastman Kodak split 2 for 1|
|June 1||2.348||Owens-lllinois Glass split 2 for 1|
|June 16||2.278||Union Carbide split 2 for 1|
|November 1||2.245||United Aircraft split 3 for 2|
|1967 June 6||2.217||Swift split 2 for 1|
|June 12||2.163||Anaconda split 2 for 1|
|1968 May 27||2.078||Eastman Kodak split 2 for 1|
|August 19||2.011||International Nickel split 2 1/2 for 1|
|1969 April 1||1.967||Johns-Manville split 2 for 1|
|May 7||1.934||Goodyear split 2 for 1|
|August 11||1.894||Texaco split 2 for 1|
|1970 May 19||1.826||Procter & Gamble split 2 for 1|
|1971 March 30||1.779||General Foods split 2 for 1|
|June 8||1.712||General Electric split 2 for 1|
|December 16||1.661||Westinghouse Electric split 2 for 1|
|1972 November 1||1.661||Standard Oil (N.J.) name changed to Exxon|
|1973 May 30||1.661||Swift name changed to Esmark|
[Back To Top]
|December 11||1.626||Standard Oil (Calif£) split 2 for 1|
|1974 February 4||1.598||Aluminum Co. of America split 3 for 2|
|1975 May 1||1.598||United Aircraft name changed to United Technologies|
|October 1||1.588||Esmark split 5 for 4|
|1976 April 21||1.588||International Nickel name changed to Inco|
|1976 May 19||1.554||United Technologies split 2 for 1|
|1976 June 2||1.527||U.S. Steel split 3 for 2|
|July 26||1.473||Exxon split 2 for 1|
|August 9||1.504||Minnesota Mining & Manufacturing replaced Anaconda|
|1977 April 11||1.474||Owens-Illinois split 2 for 1|
|July 18||1.443||Sears, Roebuck split 2 for 1|
|1979 June 29||1.465||
|1981 February 23||1.431||Aluminum Co. of America split 2 for 1|
|March 11||1.388||Standard Oil (California) split 2 for 1|
|1981 May 26||1.348||American Brands split 2 for 1|
|June 12||1.314||Exxon Corp. split 2 for 1|
|1982 August 30||1.359||American Express Co. replaced Manville Corp.|
|1983 February 11||1.344||American Express Co. split 4 for 3|
|February 22||1.292||Procter & Gamble split 2 for 1|
|June 2||1.248||General Electric split 2 for 1|
|August 11||1.230||American Express Co. split 3 for 2|
|1984 January 4||1.194||"New" AT&T replaced "Old" AT&T|
|June 11||1.132||United Technologies split 2 for 1|
|July 2||1.132||Standard Oil (California) name changed to Chevron|
|1985 May 20||1.116||Eastman Kodak split 3 for 2|
|September 19||1.116||Allied Corp. name changed to Allied-Signal Inc.|
|1986 February 20||1.090||International Harvester name changed to Navistar International Corp.|
|March 4||1.044||Union Carbide split 3 for 1|
|April 11||1.008||Philip Morris split 2 for 1|
|May 27||0.956||Merck split 2 for 1|
|May 28||0.953||Distribution of one share of Henley Group Inc. common for each four shares of Allied-Signal common held.|
|May 30||0.929||F.W. Woolworth split 2 for 1|
|June 17||0.908||Owen-Illinois split 2 for 1|
|June 26||0.889||McDonald's split 3 for 2|
|July 8||0.889||U.S. Steel name changed to USX Corp.|
|1987 March 12||0.901||
|March 13||0.880||American Can Co. split 2 for 1|
|April 29||0.880||American Can Co. name changed to Primerica Corp.|
|May 11||0.866||American Express split 2 for 1|
|May 20||0.846||International Paper split 2 for 1|
|May 26||0.824||General Electric split 2 for 1|
|June 16||0.796||Minnesota Mining & Manufacturing split 2 for 1|
|June 23||0.784||McDonald's Corp. split 3 for 2|
|September 15||0.766||Exxon Corp. split 2 for 1|
|October 20||0.754||Eastman Kodak split 3 for 2|
|1988 May 26||0.703||Merck split 3 for 1|
|1988 December 16||0.700||Primerica Corp. (old) merged into Commercial Credit Group Inc. which adopted Primerica Corp.'s name|
|1989 March 29||0.682||General Motors split 2 for 1|
|May 30||0.680||Texaco special dividend|
|June 12||0.670||Boeing split 3 for 2|
|June 19||0.659||McDonald's Corp. split 2 for 1|
|August 29||0.658||Texaco special dividend|
|October 11||0.610||Philip Morris split 4 for 1|
|November 20||0.586||Procter & Gamble split 2 for 1|
|1990 January 22||0.555||Du Pont Co. split 3 for 1|
|May 14||0.540||Coca-Cola Co. split 2 for 1|
|May 22||0.527||Westinghouse Electric Corp. split 2 for 1|
|June 1||0.515||Woolworth Corp. split 2 for 1|
|June 11||0.505||Boeing Co. split 3 for 2|
|1991 May 6||0.559||
|1992 May 12||0.5464359||Coca-Cola Co. split 2 for 1|
|May 18||0.51225107||Walt Disney Co. split 4 for 1|
|May 26||0.48220767||Merck & Co. split 3 for 1|
|June 15||0.46730171||Procter & Gamble split 2 for 1|
|July 6||0.46268499||Union Carbide's distribution of one share of Praxair Inc. for each share of Union Carbide.|
|1993 April 26||0.46268499||Allied-Signal Inc. name changed to AlliedSignal Inc.|
|May 5||0.45160391||Goodyear Tire & Rubber Co. split 2 for 1|
|July 13||0.44731238||Sears, Roebuck & Co. distribution of 0.39031 of a share of Dean Witter, Discover & Co. for each share of Sears.|
|1994 January 4||0.44418455||Eastman Kodak Co.'s distribution of 1 share of Eastman Chemical Co. common stock for each share of Eastman Kodak.|
|March 15||0.43416961||AlliedSignal Inc. split 2 for 1.|
|April 11||0.42025523||Minnesota Mining & Manufacturing Co. split 2 for 1.|
|April 20||AT&T Corp. (name changed from American Telephone and Telegraph Co.).|
|May 16||0.40722472||General Electric Co. split 2 for 1.|
|May 31||0.40625989||American Express Co.'s distribution of 1/5 of a share of Lehman Brothers Holdings.|
|June 13||0.39421851||Chevron Corp. split 2 for 1.|
|June 27||0.38610730||McDonald's Corp. split 2 for 1.|
|September 6||0.37153418||Caterpillar Inc. split 2 for 1.|
|1995 February 27||0.36143882||Aluminum Co. of America split 2 for 1.|
|July 13||0.35491922||Sears, Roebuck & Co. distribution of 0.927035 share of Allstate Corp.|
|September 18||0.34599543||International Paper Co. split 2 for 1.|