The Bullish Bears break down a list of the Dow Jones (Dow Industrial Average) stocks and companies, ETFs, and futures. Dow (^DJI) is among the popular indexes that traders and investors look at to gauge the stock market’s performance. It tracks 30 very large companies, the most recognizable household names. It was created in 1882 by Charles Dow. Also, check out our full stock indexes list.
When you review this list, you’ll probably see that you use or purchase many of their products throughout the year. These companies often have a good dividend yield and are considered blue chip stocks that withstand the test of time. Many investors like the Dow because it has an annualized return of roughly 7.5%, which is respectable. However, the SP500 comes in at closer to 10%.
We are not affiliated with nor endorse any of these companies, and nothing on this site constitutes a recommendation to buy or sell.
|AAPL||Apple Inc.||$2.825 T||Technology||Consumer Electronics|
|MSFT||Microsoft Corporation||$2.328 T||Technology||Software—Infrastructure|
|UNH||UnitedHealth Group Incorporated||$488.52 B||Healthcare||Healthcare Plans|
|V||Visa Inc.||$486.77 B||Financials||Credit Services|
|JNJ||Johnson & Johnson||$475.93 B||Healthcare||Drug Manufacturers—General|
|WMT||Walmart Inc.||$429.05 B||Consumer Staples||Discount Stores|
|JPM||JPMorgan Chase & Co.||$410.84 B||Financials||Banks|
|PG||The Procter & Gamble Company||$384.60 B||Consumer Staples||Household & Personal Products|
|HD||The Home Depot, Inc.||$321.47 B||Consumer Discretionary||Home Improvement Retail|
|CVX||Chevron Corporation||$315.13 B||Energy||Oil & Gas Integrated|
|KO||The Coca-Cola Company||$273.20 B||Consumer Staples||Beverages—Non-Alcoholic|
|DIS||The Walt Disney Company||$247.88 B||Communication Services||Entertainment|
|CSCO||Cisco Systems, Inc.||$238.45 B||Technology||Communication Equipment|
|VZ||Verizon Communications Inc.||$216.68 B||Communication Services||Telecom Services|
|NKE||Nike, Inc.||$213.60 B||Consumer Discretionary||Footwear & Accessories|
|MRK||Merck & Co., Inc.||$210.38 B||Healthcare||Drug Manufacturers—General|
|INTC||Intel Corporation||$201.72 B||Technology||Semiconductors|
|CRM||salesforce.com, inc.||$193.80 B||Technology||Software—Application|
|MCD||McDonald's Corporation||$186.57 B||Consumer Discretionary||Restaurants|
|AXP||American Express Company||$150.76 B||Financials||Credit Services|
|AMGN||Amgen Inc.||$141.72 B||Healthcare||Drug Manufacturers—General|
|HON||Honeywell International Inc.||$136.48 B||Industrials||Specialty Industrial Machinery|
|CAT||Caterpillar Inc.||$124.13 B||Industrials||Farm & Heavy Construction Machinery|
|IBM||International Business Machines Corporation||$119.20 B||Technology||Information Technology Services|
|GS||The Goldman Sachs Group, Inc.||$112.71 B||Financials||Capital Markets|
|BA||The Boeing Company||$110.46 B||Industrials||Aerospace & Defense|
|MMM||3M Company||$88.77 B||Industrials||Specialty Industrial Machinery|
|DOW||Dow Inc.||$48.50 B||Basic Materials||Chemicals|
|TRV||The Travelers Companies, Inc.||$45.56 B||Financials||Insurance—Property & Casualty|
|WBA||Walgreens Boots Alliance, Inc.||$40.55 B||Healthcare||Pharmaceutical Retailers|
Dow Jones ETF List
|DIA||SPDR DJIA ETF|
|DDM||ProShares Ultra Dow30|
|UDOW||ProShares UltraPro Dow30|
|DOD||ELEMENTS Dogs of the Dow|
Dow Jones Futures Symbols
When you review this list, you’ll probably see that you use or purchase many of their products throughout the year. These companies often have a good dividend yield and are considered blue chip stocks that withstand the test of time.
Many investors like the Dow because it has an annualized return of roughly 7.5%, which is respectable. However, the SP500 comes in at closer to 10%. It’s important to track the DOW Jones or S&P 500 whenever you’re looking to invest in stocks or trade them. A Dow chart is a helpful guide because most stocks run with major indices.
When the Dow is down, typically, many of the stocks that run in the other major indices will also be down. That’s why it’s important always to keep an eye on the chart to see what it’s doing.
Many stocks that makeup people’s 401 Ks or long-term investment strategies are located within the Dow because they are known to be reputable companies with solid earnings track records.
Day traders will have a chart of this major index up and track whether it’s up or down, then take a look at what stock symbol they are looking to momentum trade. If the market is bullish and they are looking to go long on a day trade, they might consider a trade if the setup looks good.
If the market is bearish or is trading range bound, it might cause them some pause before taking a trade because they know there might not be as much momentum behind the trade.
Just because the stocks in the Dow Jones Industrial Average have a good historical record, it doesn’t mean they won’t have market corrections on the way up or even major pullbacks.
Earnings can also have a major effect on the major indices. If a stock like ($AAPL) Apple has bad earnings, it could affect the Dow Jones. Stocks don’t go up forever, even though the history of these major indices has a track record of going up. Remember the 2008 financial crisis and the Dot.com Bubble?
That’s why it’s important to track the markets and see how they are doing so you can plan your trading or investment strategies accordingly.
Trading the Dow
There are multiple ways that you can trade the Dow. You can trade options or futures. The top 4 DOW ETFs are the $DIA, $DDM, $UDOW, and the $DOD. The futures symbols for the Dow Jones are /YM for e-mini and /MYM for micro futures.
The ability to trade major indexes as the DJIA opens the door for traders and investors. Some traders like to trade options in this major in these as a hedge, and others like to trade for profit. Options allow you to profit in any market, so when the DJIA is trending downwards, you can make money on the way down with either puts or credit spread strategies.
Futures are another great way to capitalize on trading the DJIA. You can either day trade futures or swing trade them. The contracts for /YM are less complicated to trade than options contracts. The process for trading them is very simple too. It’s like buying and selling fractional shares of stock essentially. There’s a bit more to it but less complicated than the options. So, essentially you can buy fractional shares of these major indices and profit, whether bullish or bearish.
The DJIA comprises millions of buyers and sellers of stocks in this major index worldwide. It comprises individual traders, investors, hedge funds, and major brokerage firms.
Every time someone buys and sells a stock within this index from around the world, they leave a paper trail known as candlesticks. The green candlesticks or white ones on charts are known as bullish candlesticks. The red or black ones are bearish candlesticks.
These patterns are very important to understand when tracking the DJIA chart. They help you determine this index’s overall trend, whether it is bullish or bearish. This will help you to be able to determine what trading strategy you are going to employ.
If the market is bullish, you might consider purchasing naked calls and puts, debit spreads, or a put credit spread. When this index is bearish, you’d consider a naked put, put debit spread, or a call credit spread.
Frequently Asked Questions
Why is the Dow Jones useful? Well, following how well these large and typically strong-performing companies are doing can indicate the overall health of the stock market. Also, these companies are usually considered safe to own, even in times of economic downturn, like bear markets and recessions. As we know, markets are comprised of people, and people are emotional, so that the charts will show emotions in the form of candlesticks and patterns. You also should read up on Dow Theory.