Dow-Jones-imageSummer of Dow Jones Industrial Average

The DJIA is the price weighted index of 30 most actively traded stocks of the Unite States corporations or companies listed on the New York Stock Exchange Market. The trend in the movement of the Dow Jones stock prices for these industrial corporations is considered to be an indicator of the entire US stock market movement. The index is rebalanced periodically as corporate and industry leadership change. If the economy is doing well, the prices of the stock as a group tends to rise, but when the economy is doing poorly, the prices as a group tend to fall. However, if a particular stock is going up while the entire market is going down, that tells you something, or if a stock is falling faster than the market whole market, that tells you something as well. The DJIA is quoted in points not in dollars, and is the best-known stock market in the world. Some of the major Corporations that make up the Dow Jones Composite Index include; 3M Co., Alcoa Inc., American Express Co., AT&T Inc., Bank of America Corp., American International Group Inc., Chevron Corp., Boing Inc., and Coca-Cola Co. among others.

Dow Jones average today

The Dow Jones average today closed slightly better after posting an inside day. The volume was above average, indicating those industrial corporation traders are anticipating an increase in 2015. The tone of the market will likely be determined by the reaction of the traders as Dow Jones average price hits record high. If the rally is going to continue this way, then the level is going to be taken out with buying volumes. There is no true resistance, but since the market is trading in a bullish channel, the next potential target will be above the current average record. Since the main trend is up, expect the bullish trade to go up and continue with the uptrend. Supposing better than average volume is behind the move, then then the rally will extend. However, if the volume is not there to support the rally, then the potential bearish of Dow Jones closing prices might reverse at the end of the session.

The 5-year trend of Dow Jones Industrial Average

Following the rising trend of capital expenditure spending by United States’ industrial corporations, the rise in stock market rally could last for five years. Several companies have been unwilling to invest in stock since the 2008 economic crisis, fearing low demand. That is why most companies in the United States have accumulated a lot of cash. It seems these companies will soon begin to use their cash piles to invest in their own business. It is the next logical progression for companies with a strong balance sheet. Currently, most active companies in New York Stock Exchange have a surge of stock and dividends. There is also the wave of mergers and acquisition of companies. This will result in the growth of corporate that will definitely power a stock market rally that will last for 5 years and could as well be the beginning of a super bull market that could go for 15 to 18 years. Several sectors are expecting higher capital expenditure in 2015 and this will fuel the Dow Jones stock prices. If you want to invest in the U.S. Stock Exchange Market; don’t worry since an industrial average is expected to rise in the coming years.

The Future for 20,000 Dow Jones

The stock market may be due for a breather after a strong 3-year run, but that could as well be the pause that refreshes a longer-term rally. The stars are aligning for the future of Dow Jones to finally breach that 17,000 level and perhaps move up to 20,000 mark within the next 3 years. Currently, the profit margins of industrial companies have likely picked and the era of cost cuts has ended. The gradually improving economy in U.S is encouraging companies to start increasing expenditure in areas of business that promise solid growth prospects. For instance, the investments in technology, personnel, stepped-up prospect research and new factories can strongly inspire economic spending. As seen in the recent resolutions of European’s troubles and the current strong U.S. economic data means that the future for the 20,000 Dow Jones is clear. It is also apparent that there are a lot of awful liquidity sloshing around the world, and a merely reasonable belief that liquidity might find its way into the stock. You can expect the 20,000 Dow Jones level to be reached in the future, as long as the U.S. has strong and deep capital markets, a relatively low tax environment and entrepreneurial spirit as well as the steady gains in consumer and corporate spending.

The 30 stocks now in the Dow Jones stock prices are all the major factors for individuals and institutional investors. Using these large frequently traded stocks provides a critical feature of industrial average timeliness in U.S. Dow Jones industrial average is based on the recent transactions at any moment during the trading day. For the next day trading, ensure you study, Dow Jones closing prices for the day to make a sound investment.