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The Dow Jones industrial average on Friday surged above 17,000-level for the first time in its 118-year history.
The Dow Jones, the oldest barometer of the stock market, is an index of 30 blue-chip stocks of the United States. It is a group of 30 big corporations that are nearly household names. The fluctuations, dips and jumps, in the stocks reflect changes in the share prices of the 30 companies numbered at the Dow Jones.
Like Dow Jones, there are several other indexes like the S&P 500 where other companies engage in trading.
Experts say the Dow may not be the best resort to measure the market trend but this oldest index remains the best-known shorthand for the stock market.
US job report
According to the report, an additional 288,000 jobs were added in June and the rate of unemployment in the US dropped to 6.1 percent.
The employment growth in the United States surged in June, suggesting decisive evidence to the growing economy after a surprisingly big slump at the start of the year. The unemployment rate, however, closed in on a six-year low.
According to the Labor Department report, nonfarm payrolls increased by 288,000 jobs last month and the jobless rate fell to 6.1 percent, its lowest level since September 2008.
Stocks market on US job report
The Dow Jones index reached record high as it soared through the 17,000 barrier after the Labor department released the job report that showed a bigger-than-expected surge in job creation last month.
The S&P 500 gained 10.82 points or 0.55 percent to 1,985.44. The Nasdaq Composite added 28.19 points or 0.63 percent to 4,485.93.
The Asian stock markets witnessed an upward trend altogether on Friday following the US report on employment and unemployment rate.
Britain’s FTSE 100 fell 0.1 percent to 6,860.96 and France’s CAC-40 was down 0.1 percent to 4,486.24. Moreover, Germany’s DAX fell less than 0.1 percent at 10,025.14 on US jobs report.
Dow Jones: From the past
Dow Jones industrial average started with just 12 big businesses, including American Cotton Oil and National Lead. It first published its average on May 26, 1896. The number of firms gradually expanded to 20 in 1916 and to 30 in 1928 at the Dow Jones. Interestingly, the number remained stable at 30 since then.
The index is calculated and published by S&P Dow Jones Indices. It is a joint venture that is majority-owned by publishing giant McGraw-Hill.
The Dow Jones witnessed the biggest surge on October 13, 2008, when it soared 936.42, or 11 percent, to close at 9,387.61. The Dow Jones had its biggest percentage jump of more than 15 percent when it reopened on March 15, 1933.
Similarly, its biggest drop came on September 29, 2008, when its average lost 777.68 or 7 percent. Its biggest percentage downfall was on October 19, 1987, when it was down 508 points or almost 23 percent, to close at 1,738.74.