Dow Jones Transportation Average

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Dow Jones Transportation Average
DowJonesIndex.svg
base data
Country United States
Stock exchange New York Stock Exchange
ISIN XC0009694214
WKN 969421
symbol DJT
RIC ^ DJT
Bloomberg code TRAN <INDEX>
category Stock index
Type Price index
family Dow Jones

The Dow Jones Transportation Average (also "Dow Jones Transports"; DJTA ) is a share index in the USA and comprises 20 of the largest transport companies on the New York Stock Exchange . It was first published in the Customers' Afternoon Letter on July 3, 1884, by Charles Dow , co-founder of the Dow Jones publishing house .

calculation

The Dow Jones Transportation Average (DJTA) is a price index and comprises 20 of the largest US transportation companies on the New York Stock Exchange (NYSE). It is calculated without dividends , subscription rights and special payments, which means that it is a price-weighted index. The index level is determined solely on the basis of share prices and only adjusted for income from subscription rights and special payments. In the case of stock splits and stock consolidations, the index is adjusted using correction factors.

The calculation is based on adding up the individual share prices and then dividing them by the number of index members. Each of the 20 companies in the DJTA is weighted equally - with 5%. This is different for many other stock market indices, for example the DAX . When calculating the DJTA, it does not matter what percentage of the shares are in free float .

Inclusion of companies in the DJTA and removal from the DJTA are not strictly regulated and are at the discretion of the editors of the Wall Street Journal . The calculation is updated every second during NYSE trading hours from 9:30 am to 4:00 pm local time (3:30 pm to 10:00 pm CET).

Leading indicator for the US economy

According to the Dow Theory, the Dow Jones Transportation Average is a leading indicator of the US economy and thus also of the stock markets. Some technical analysts in particular are looking at the index. The economic development is reflected in the order situation of the logistics companies. Required raw materials have to be brought to the production facilities long before the end product is transported to the end user. That is why many analysts regard the transport index as an early indicator of economic development.

In the Dow Theory, it is not only the transport index that is important, but also the Dow Jones Industrial Average . A trend reversal is only seen as given when both the shares of industrial companies and the shares of transport companies no longer confirm their highs or lows, whereby the transport shares have a leading character. In the western world, the American Charles Dow is considered to be the founder of technical analysis. He published his Dow Theory on chart analysis in a series of articles from 1884 in the Wall Street Journal.

Another leading indicator of the logistics industry is the Baltic Dry Index (shipping), an important price index for the worldwide shipping of major cargo (mainly coal, iron ore and grain) on standard routes .

history

Historical overview

Dow Jones Transportation Average 1896–2012

Charles Dow developed the first US stock index , the “Dow Jones Average”, to provide a benchmark for assessing fluctuations in the share price . It was the predecessor of what is now the Dow Jones Transportation Average. The index was first published on July 3, 1884 in the “Customers' Afternoon Letter” and initially consisted of eleven values. Nine stocks were railroad companies and two industrial companies (the Pacific Mail Steamship Company and the Western Union money transfer company ).

The first Dow Jones Average on July 3, 1884
Surname Branch
Chicago, Milwaukee and St. Paul Railway Railway company
Chicago and North Western Railway Railway company
Delaware, Lackawanna and Western Railroad Railway company
Lake Shore and Michigan Southern Railway Railway company
Louisville and Nashville Railroad Railway company
Missouri Pacific Railway Railway company
New York Central Railroad Railway company
Northern Pacific Railroad Railway company
Pacific Mail Steamship Company Steamship company
Union Pacific Railway Railway company
Western Union Money transfer company

In the fall of 1896, the original Dow Jones Average was adjusted to the industrial companies and renamed the "Dow Jones Railroad Average" (DJRA). The DJRA started on September 8, 1896 at 48.55 points. On January 2, 1970, the index was given its current name “Dow Jones Transportation Average” (DJTA).

A milestone in the development was March 1, 1983, when the index ended trading above the 500-point mark for the first time. On June 8, 1984, the DJTA closed above the 1,000 point mark for the first time, and above the 2,000 point mark on September 18, 1995. The Dow Jones Transportation Average also set further record highs in the following years. On August 6, 1997, it ended trading above the 3,000-point mark for the first time.

On May 12, 1999, the index reached a level of 3,686.00 points, which remained its all-time high for half a decade. The bursting of the speculative bubble in the technology sector ( dotcom bubble ) also had an impact on the Dow Jones Transportation Average. It fell to a low of 1,942.19 points by March 11, 2003. That was a decrease of 47.3 percent compared to May 12, 1999.

March 11, 2003 marks the end of the downward slide. From spring 2003 the index was on the way up again. On November 9, 2005, the DJTA closed above the 4,000 point mark for the first time. The index passed the 5,000 point mark for the first time on February 2, 2007. On July 19, 2007, the Dow Jones Transportation Average ended trading at 5,446.49 points. The increase since March 11, 2003 is 180.4 percent.

In the course of the international financial crisis , which had its origin in the US real estate crisis in the summer of 2007, the index began to decline again. On October 7, 2008 the DJTA closed with 3,898.15 points below the limit of 4,000 points. The Dow Jones Transportation Average fell to its lowest level since March 31, 2003 on March 9, 2009 when it ended trading at 2,146.89 points. Since the high on July 19, 2007, this corresponds to a decrease of 60.6 percent.

March 9, 2009 marked the end of the downward trend. The index recovered strongly from spring 2009. On July 7, 2011, the Dow Jones Transportation Average closed at 5,618.25 points. The profit since March 9, 2009 is 161.7 percent. The weakening of the global economy and the intensification of the euro crisis led to a drop in the US transport index. On October 3, 2011, the stock market barometer ended trading at 4,038.73 points. The loss since the high on July 7, 2011 is 28.1 percent.

The announcement of new bond purchase programs by the European Central Bank and the US Federal Reserve , which are basically unlimited, led to a recovery in prices on the stock market. The monetary stimulus played a bigger role in the price formation than the global economic slowdown and the state of the companies. On January 17, 2013, the index marked an all-time high with a closing level of 5,681.28 points. The profit since the low on October 3, 2011 is 40.7 percent.

Highs

The overview shows the all-time highs of the Dow Jones Transportation Average.

  Points date
in the course of trading 11,611.52 Friday September 14, 2018
on a closing price basis 11,570.84 Friday September 14, 2018

Milestones

The table shows the milestones of the Dow Jones Transportation Average.

First
close
over 		Final
score in points 		date
50 51.72 October 26, 1896
100 100.09 March 13, 1901
150 150.75 November 20, 1928
200 201.61 May 12, 1964
250 250.04 January 10, 1966
300 305.80 February 28, 1980
350 350.02 September 22, 1980
400 407.76 November 18, 1980
450 452.19 5th November 1982
500 501.27 March 1, 1983
First
close
over 		Final
score in points 		date
1,000 1,001.42 June 8, 1987
1,500 1,506.58 August 29, 1989
2,000 2,000.39 September 18, 1995
2,500 2,501.33 April 18, 1997
3,000 3,008.91 August 6, 1997
3,500 3,575.07 February 12, 1998
4,000 4,004.37 November 9, 2005
4,500 4,514.14 March 1, 2006
5,000 5,006.89 February 2, 2007
5,500 5,510.06 April 28, 2011

The best days

The table shows the Dow Jones Transportation Average's best days since 1896.

rank date Final
score in points 		Change
in points 		Change
in%
1 15th Mar 1933 29.19 4.43 17.89
2 Dec 18, 1931 35.91 4.49 14.29
3 23 Sep 1931 61.86 7.59 13.99
4th Feb 13, 1932 39.70 4.13 11.61
5 21 Sep 1932 36.22 3.74 11.51
6th 0June 4, 1932 17.64 1.77 11.15
7th 0Oct 6, 1931 50.68 5.00 10.95
8th Aug 15, 1932 28.30 2.76 10.81
9 05th Sep 1939 28.96 2.78 10.62
10 Oct 14, 1932 27.71 2.64 10.53
11 22 Aug 1932 33.20 3.06 10.15
12 0Aug 3, 1932 22.00 2.00 10.00
13 0Aug 6, 1932 24.72 2.24 9.96
14th June 23, 1938 24.60 2.14 9.53
15th July 29, 1932 21.59 1.85 9.37
16 0Oct 8, 1931 54.69 4.57 9.12
17th 0Dec 6, 1932 26.81 2.22 9.03
18th Oct 11, 1932 25.77 2.12 8.96
19th Dec. 27, 1917 78.02 6.41 8.95
20th Aug 24, 1932 36.32 2.87 8.58

The worst days

The table shows the worst days of the Dow Jones Transportation Average since 1896.

rank date Final
score in points 		Change
in points 		Change
in%
1 Oct 19, 1987 776.87 −164.78 −17.50
2 17 Sep 2001 2,271.68 −404.82 −15.12
3 0Oct 5, 1932 29.52 −3.94 −11.78
4th Sep 24 1931 55.58 −6.28 −10.15
5 Oct 26, 1987 674.92 −74.68 −9.96
6th Sep 12 1932 34.22 −3.72 −9.80
7th July 21, 1933 44.82 −4.74 −9.56
8th 25th Mar 1938 19.95 −2.04 −9.28
9 0Dec 1, 2008 3,196.83 −315.37 −8.98
10 Oct 15, 2008 3,632.83 −356.82 −8.94
11 Oct 10, 1932 23.65 −2.31 −8.90
12 Sep 14 1932 29.71 −2.86 −8.78
13 July 26, 1934 34.29 −3.30 −8.78
14th 0Oct 2, 2008 4,177.18 −399.19 −8.72
15th 21 Sep 1933 42.85 −4.01 −8.56
16 Oct 23, 1937 32.32 −2.96 −8.39
17th Oct 18, 1937 30.55 −2.78 −8.34
18th Oct 21, 1932 27.28 −2.48 −8.33
19th July 20, 1933 49.56 −4.45 −8.24
20th Aug 12, 1932 26.28 −2.35 −8.21

Annual development

The table shows the annual development of the Dow Jones Transportation Average since 1896.

year Final
score in points 		Change
in points 		Change
in%
1896 51.33
1897 62.29 10.96 21.35
1898 74.99 12.70 20.39
1899 77.73 2.74 3.65
1900 94.99 17.26 22.21
1901 114.85 19.86 20.91
1902 118.98 4.13 3.60
1903 98.33 −20.65 −17.36
1904 117.43 19.10 19.42
1905 133.26 15.83 13.48
1906 129.80 −3.46 −2.60
1907 88.77 −41.03 −31.61
1908 120.05 31.28 35.24
1909 130.41 10.36 8.63
1910 114.06 −16.35 −12.54
1911 116.83 2.77 2.43
1912 116.84 0.01 0.01
1913 103.72 −13.12 −11.23
1914 88.53 −15.19 −14.65
1915 108.05 19.52 22.05
1916 105.15 −2.90 −2.68
1917 79.73 −25.42 −24.17
1918 84.32 4.59 5.76
1919 75.30 −9.02 −10.70
1920 75.96 0.66 0.88
1921 74.27 −1.69 −2.22
1922 86.11 11.84 15.94
1923 80.86 −5.25 −6.10
1924 98.33 17.47 21.61
1925 112.93 14.60 14.85
1926 120.86 7.93 7.02
1927 140.30 19.44 16.08
1928 151.14 10.84 7.73
1929 144.72 −6.42 −4.25
1930 96.58 −48.14 −33.26
1931 33.63 −62.95 -65.18
1932 25.90 −7.73 −22.99
1933 40.80 14.90 57.53
1934 36.44 −4.36 −10.69
1935 40.48 4.04 11.09
1936 53.63 13.15 32.49
1937 29.46 −24.17 −45.07
1938 33.98 4.52 15.34
1939 31.63 −2.35 −6.92
1940 28.13 −3.50 −11.07
1941 25.42 −2.71 −9.63
1942 27.39 1.97 7.75
1943 33.56 6.17 22.53
1944 48.40 14.84 44.22
1945 62.80 14.40 29.75
1946 51.13 −11.67 −18.58
1947 52.48 1.35 2.64
1948 52.86 0.38 0.72
1949 52.76 −0.10 −0.19
1950 77.64 24.88 47.16
1951 81.70 4.06 5.23
1952 111.27 29.57 36.19
1953 94.03 −17.24 −15.49
1954 145.86 51.83 55.12
1955 163.29 17.43 11.95
1956 153.23 −10.06 −6.16
1957 96.96 −56.27 −36.72
1958 157.65 60.69 62.59
1959 154.05 −3.60 −2.28
1960 130.85 −23.20 −15.06
1961 143.84 12.99 9.93
1962 141.04 −2.80 −1.95
1963 178.54 37.50 26.59
1964 205.34 26.80 15.01
1965 247.48 42.14 20.52
1966 202.97 −44.51 −17.99
1967 233.24 30.27 14.91
1968 271.60 38.36 16.45
1969 176.34 −95.26 −35.07
1970 171.52 −4.82 −2.73
1971 243.72 72.20 42.09
1972 227.17 −16.55 −6.79
1973 196.19 −30.98 −13.64
1974 143.44 −52.75 −26.89
1975 172.65 29.21 20.36
1976 237.03 64.38 37.29
1977 217.18 −19.85 −8.37
1978 206.56 −10.62 −4.89
1979 252.39 45.83 22.19
1980 398.10 145.71 57.73
1981 380.30 −17.80 −4.47
1982 448.38 68.08 17.90
1983 598.59 150.21 33.50
1984 558.13 −40.46 −6.76
1985 708.21 150.08 26.89
1986 807.17 98.96 13.97
1987 748.86 −58.31 −7.22
1988 969.84 220.98 29.51
1989 1,177.81 207.97 21.44
1990 910.23 −267.58 −22.72
1991 1,358.00 447.77 49.19
1992 1,449.21 91.21 6.72
1993 1,762.32 313.11 21.61
1994 1,455.03 −307.29 −17.44
1995 1,981.00 525.97 36.15
1996 2,255.67 274.67 13.87
1997 3,256.50 1,000.83 44.37
1998 3,149.31 −107.19 −3.29
1999 2,977.20 −172.11 −5.47
2000 2,946.60 −30.60 −1.03
2001 2,639.99 −306.61 −10.41
2002 2,309.96 −330.03 −12.50
2003 3,007.05 697.09 30.18
2004 3,798.05 791.00 26.30
2005 4,196.03 397.98 10.48
2006 4,560.20 364.17 8.68
2007 4,570.55 10.35 0.23
2008 3,537.15 −1,033.40 −22.61
2009 4,099.63 562.48 15.90
2010 5,106.75 1,007.12 24.57
2011 5,019.69 −87.06 −1.70
2012 5,306.77 287.08 5.72
2013 7,400.57 2,093.80 39.46
2014 9,139.92 1,739.35 23.50
2015 7,508.71 −1,631.21 −17.85
2016 9,043.90 1,535.19 20.45
2017 10,612.29 1,568.36 17.34
2018 9,170.40 −1.441.89 −13.59
2019 10,901.28 1,730.88 18.87

composition

The Dow Jones Transportation Average consists of the following 20 values ​​(as of November 2019):

Surname Branch Index weighting in%
Alaska Air Group airline 3.97
American Airlines airline 1.69
Avis Budget Group Rental car 1.71
CH Robinson Worldwide carrier 4.25
CSX Corporation Railway company 4.08
Delta Air Lines airline 3.16
Expeditors International of Washington Delivery service 4.23
FedEx Delivery service 8.96
JB Hunt carrier 6.53
JetBlue Airways airline 1.09
Kansas City Southern Railway company 8.47
Kirby Corporation Cargo shipping 4.60
Landstar system carrier 6.41
Matson shipping 2.16
Norfolk Southern Railway Railway company 10.72
Ryder system transport 2.98
Southwest Airlines airline 3.22
Union Pacific Corporation Railway company 9.77
United Airlines Holdings airline 5.17
United Parcel Service Delivery service 6.81

See also

Web links

Individual evidence

  1. ^ Dow Jones Averages: Dow Jones Transportation Average
  2. ^ Dow Jones Indexes: Fact Sheets and Methodologies by indexes
  3. ^ A b Federal Reserve Bank of St. Louis: Historical prices from 1896
  4. ↑ a b c Yahoo: Historical prices from 1928
  5. ↑ a b Dow Jones Averages: Milestones
  6. ↑ 1Stock1: Dow Jones Transportation Average Yearly Returns
  7. ↑ Money-Zine.com: Dow Jones Transportation Components , accessed on August 25, 2020