The Dow Jones index is calculated on average basis but one thing that is worth noticing here is the role of the divisor, which has been adjusted several times over the past few years and that too, mostly downward. The S&P Global 1200 Carbon Efficient Select Index Series is also designed to measure performance of companies in the S&P Global 1200 that have a reduced carbon footprint The methodology excludes those companies that have the largest relative carbon footprints rather than reweighting the constituents. The only reason why Apple is on their is because of the growth and ability to have the Dow break records.
The S&P Global 1200 Fossil Fuel Free Index Series is designed to measure the performance of companies in the S&P Global 1200 that do not own fossil fuel reserves. Apple is the clear choice for the Dow Jones Industrial Average, the most recognized stock market measure,” says David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. This blog contains free technical outlook on Nasdaq Stocks Chart and Us Stock market tips.
The addition of Apple on the Dow Jones Industrial Average will occur just weeks after the iPhone maker recorded the most profitable quarter of any company ever, posting record-breaking quarterly revenue of $74.6 billion and quarterly net profit of $18 billion on sales of 74.5 million iPhones during the first quarter of the fiscal year. The Dow Jones Industrial Average provides a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq, which offers valuable insight into how the stock market is performing at any given time.
Other members of the Dow Jones include American Express, Boeing, Chevron, Coca-Cola, Disney, Exxon Mobil, Goldman Sachs, IBM, Intel, JPMorgan and Chase, Microsoft, Verizon and Visa. Apple has long been an ideal candidate for inclusion in the Dow Jones Industrial Average, although its above-$700 share price before splitting 7-for-1 last year would have inflated the price-weighted index. The stock split brought the price of Apple shares down to around the $100 mark, making it a more suitable option to be included in Dow Jones. The DOW is supposed to be a representative barometer of the whole stock market based upon a relatively tiny 30-stock basket.
The Dow Jones Averages (industrials being only one of several; the others are rarely mentioned) were created when reporting broad market performance was basically impossible any other way. Based on an assessment of general and industry-specific sustainability criteria, companies best managing sustainability opportunities and risks are then selected for inclusion in the DJSI Indices. For the past several years, Air Products had also been included in the DJSI World Index and this year, improved its performance and scores in many categories.