The Dow Jones Industrial Average and Dow Jones Crude Stock Index Dow Jones is one of the most widely used stock market indexes today. It can be found in hundreds of financial publications. Many investors use Dow Jones to guide their investments in the stock market. The Dow Jones Industrial Average, or the Dow Jones, is an index that measures the performance of 30 large corporations listed on various stock exchanges in the United States. For every company in the Dow Jones Industrial Average (Dow Jones) there is information available on its financial strength, market share, financial risk, current outlook, and possible future growth and profit. These financial data are compiled into a composite bottom line called the Dow Jones Average. Dividing the total of all the scores by the percentage of shares outstanding provides the Dow Jones Percentage, which is a good indicator of the health of a company's stock price. There are many factors that affect the performance of the Dow Jones Average. Speculators, short-term traders, and institutional investors buy and sell stocks according to their view of the company's potential for growth and profit. All of these forces combine to affect the direction and performance of the Dow Jones Average. For example, if there is a panic in the financial markets and banks begin to pull back from making major loans and buying large amounts of stocks, it can cause a sharp fall in the Dow Jones Average. If, on the other hand, there are plenty of buyers, stocks will begin to increase in value. Another way of looking at the Dow Jones Average is to look at its annualized return on equity. This is what would be the value of the company in a given year, compared to its current market value. If the return on equity is higher than the rate of growth of the company, that indicates that the company is doing well, though not exactly by the Dow Jones Industrial Average. The Dow has proven to be a reliable gauge of overall stock market performance, particularly over the last ten years. However, if you were to take a look at the yearly earnings of the Dow Jones Industrial Average directly, you might find that the earnings are lower than you would expect given the fact that the Dow only increases by about a few percentage points each year. The Dow Jones Industrial Average can also be thought of as a tool for investors to use when determining whether or not to buy sell, or do nothing on any given day. If there is little or no movement on the Dow Jones Average, then that means that a sector of the stock market is doing well and the Dow Jones will reflect that fact. If there is a lot of activity on the Dow Jones average, then something is definitely happening in that sector of the economy. The general trend of the Dow Jones is an indication of how strong or weak the economy is likely to be, as well as the future direction. One interesting thing to note about the Dow Jones average is that it only includes the stocks of the largest companies in the overall stock market. These include blue-chip companies like General Electric, Microsoft, Wal-Mart, and oil refineries. It does not include the small businesses or the other types of stocks that make up a significant portion of the overall Dow Jones. Because of this, when you use the Dow Jones average to determine whether or not to buy sell, or do nothing on the Dow Jones index, you are actually looking at the total value of all stocks on the Dow Jones index, not just the largest companies. You might also find that the Dow Jones average excludes financial and industrial activities such as stock market trading, bonds, commodities, interest rates, and so forth. When looking at the total economic value of the country, it is important to include all of these things. If you want to know what the total economic value of the United States is today, then you should look at what the United States economy is doing during these economic times. While looking at the Dow Jones industrial sector, you will see that it includes stocks from large business corporations, as well as the smaller businesses that make up the remainder of the overall Dow Jones index. These two things can be used together to determine the true strength of the United States economy. Using the Dow Jones industrial sector and the Dow Jones crude index can help you get a better idea of how stable or shaky the economy might be. The more information you have about the overall state of the economy, the better prepared you will be to deal with any problems that might come up.