Dow Jones Utility Average

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Dow Jones Utility Average
logo
base data
Country United States
Stock exchange New York Stock Exchange
ISIN XC0009694222
WKN 969422
symbol DJU
RIC ^ DJU
Bloomberg code UTIL <INDEX>
category Stock index
Type Price index
family Dow Jones

The Dow Jones Utility Average is a stock index that includes the 15 largest publicly traded utilities in the United States . It was first published in 1929 by the Dow Jones publishing house , making it the third oldest stock index in the United States. Only the Dow Jones Transportation Average from 1884 and the Dow Jones Industrial Average from 1896 are older .

calculation

The Dow Jones Utility Average is a price index and comprises 15 leading US utility 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 shares in the index. The number of shares in free float is not taken into account. Companies' inclusion in the Dow Jones Utility Average and index exclusions are not strictly set and are at the discretion of the Wall Street Journal editors . 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 stock market

The Dow Jones Utility Average with its utility stocks and the Nasdaq Composite are considered good leading indicators among stock indices. If both were trading at an 18-week low, prices can usually be expected to fall worldwide. If they were both trading at a 13-week high, an uptrend can be expected.

The utilities' profits are usually not subject to major fluctuations. This fact makes the Dow Jones Utility Average a predictable factor in determining whether stocks are over- or undervalued relative to interest-bearing securities . Unlike the stocks in the Dow Jones Utility Average, the Nasdaq Composite contains very dynamic companies. Technology stocks are subject to much stronger price fluctuations and therefore react very quickly to an impending bear market or an impending bull market .

Both indices in combination give good signals for the entire stock market. For a trend reversal up or down, the Dow Jones Utility Average and the Nasdaq Composite must point in the same direction. If only one of the two indices shows a trend reversal, the earlier signal still applies.

In 1991, John Murphy described the Dow Jones Utility Average in "Intermarket Technical Analysis" as a "leading indicator for stock price development". With his book, Murphy created a new branch of technical analysis : intermarket analysis.

history

Historical overview

Dow Jones Utility Average 1928–2012

The index started on January 2, 1929 with 18 values. Six months later, on July 1, 1929, 20 public companies were listed on the Dow Jones Utility Average. On June 2, 1938, the number of companies listed was reduced to 15.

A milestone in the development of the Dow Jones Utility Average was June 6, 1929, when the index ended trading above the 100 point mark for the first time at 100.37 points. On June 30, 1986, the index passed the 200 point mark for the first time, closing at 200.10 points. The 300 point mark fell on September 23, 1998 when the index closed at 302.98 points. The Dow Jones Utility Average also set further record highs in the following years. On October 2, 2000, the index closed at 401.47 points for the first time above the 400 point mark. By December 26, 2000, it rose to a high of 416.11 points, which was 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 Utility Average. It fell to a low of 167.57 points by October 9, 2002. That was a decrease of 59.7 percent since December 2000. From autumn 2002 the index was on the way up again. On September 1, 2005, it closed at 416.23 points, above its high from December 2000. On March 26, 2007, the index passed the 500-point mark for the first time when it closed at 502.81 points. On May 21, 2007 the Dow Jones Utility Average marked an all-time high with a closing level of 535.72 points.

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 6, 2008, it closed below the limit of 400 points for the first time since May 25, 2006 with 389.07 points. The Dow Jones Utility Average fell to its lowest level since August 31, 2004 on March 9, 2009 when it ended trading at 290.68 points. Since the all-time high of May 21, 2007, this corresponds to a decline of 45.7 percent.

March 9, 2009 marked the end of the downward trend. From spring 2009 the stock market index was on the way up again. By July 30, 2012, it rose by 70.8 percent to a closing level of 496.56 points.

Highs

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

  Points date
on a closing price basis 879.82 Tuesday October 24, 2019

Milestones

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

First
close
over 		Final
score in points 		date
100 100.37 June 6, 1929
150 150.00 July 30, 1964
200 200.10 June 30, 1986
250 250.86 July 29, 1993
300 302.98 September 23, 1998
350 354.04 August 7, 2000
400 401.47 October 2, 2000
450 452.30 October 25, 2006
500 502.81 March 26, 2007

The best days

The table shows the best days of the Dow Jones Utility Average.

rank date Final
score in points 		Change
in points 		Change
in%
1 Oct. 30, 1929 87.75 13.44 18.09
2 April 20, 1933 24.62 3.38 15.91
3 Oct 13, 2008 370.58 46.01 14.18
4th Nov 14, 1929 73.57 8.85 13.67
5 0Oct 6, 1931 39.48 4.60 13.19
6th 21 Sep 1932 33.01 3.59 12.20
7th 15th Mar 1933 24.58 2.63 11.98
8th Oct 28, 2008 378.69 37.75 11.07
9 Oct. 20, 1937 21.65 2.00 10.18
10 0Aug 3, 1932 23.87 2.19 10.10
11 Feb 13, 1932 34.87 3.07 9.65
12 Nov 21, 2008 366.34 30.61 9.12
13 Oct 31, 1929 95.34 7.59 8.65
14th July 24, 1933 32.13 2.55 8.62
15th June 19, 1933 36.26 2.87 8.60
16 July 24, 2002 208.18 16.33 8.51
17th Oct 20, 2008 384.19 29.59 8.34
18th Oct 21, 1987 184.27 14.17 8.33
19th June 10, 1932 18.48 1.42 8.32
20th 0June 2, 1933 32.01 2.43 8.22

The worst days

The table shows the worst days of the Dow Jones Utility Average.

rank date Final
score in points 		Change
in points 		Change
in%
1 Oct 28, 1929 86.96 −17.79 −16.98
2 Oct 19, 1987 160.98 −29.16 −15.34
3 Oct. 29, 1929 74.31 −12.65 −14.55
4th 0Nov 6, 1929 78.47 −10.92 −12.22
5 0Oct 9, 2002 167.57 −17.82 −9.61
6th July 20, 1933 32.92 −3.28 −9.06
7th Nov 12, 1929 67.55 −6.36 −8.61
8th July 23, 2002 191.85 −17.81 −8.50
9 Oct 15, 2008 337.65 −31.15 −8.45
10 June 15, 1933 32.94 −2.94 −8.19
11 Nov 11, 1929 73.91 −6.55 −8.14
12 Apr 21, 1933 22.64 −1.98 −8.04
13 July 21, 1933 30.30 −2.62 −7.96
14th Dec 12, 1929 84.77 −7.18 −7.81
15th Oct 23, 1929 110.20 −9.25 −7.74
16 0Nov 6, 1940 21.51 −1.77 −7.60
17th Sep 24 1931 41.98 −3.36 −7.41
18th May 28, 1962 104.35 −8.22 −7.30
19th 0Oct 5, 1932 29.59 −2.33 −7.30
20th May 31, 1932 17.74 −1.38 −7.22

Annual development

The table shows the annual development of the Dow Jones Utility Average.

year Final
score in points 		Change
in points 		Change
in%
1928 85.64
1929 88.27 2.63 3.07
1930 60.80 −27.47 −31.12
1931 31.41 −29.39 −48.34
1932 27.71 −3.70 −11.78
1933 23.09 −4.62 −16.67
1934 17.80 −5.29 −22.91
1935 29.55 11.75 66.01
1936 34.83 5.28 17.87
1937 20.35 −14.48 −41.57
1938 22.73 2.38 11.70
1939 25.32 2.59 11.39
1940 19.85 −5.47 −21.60
1941 14.02 −5.83 −29.37
1942 14.54 0.52 3.71
1943 21.87 7.33 5.04
1944 26.26 4.39 20.07
1945 38.13 11.87 45.20
1946 37.27 −0.86 −2.26
1947 33.40 −3.87 −10.38
1948 33.55 0.15 0.45
1949 41.31 7.76 23.13
1950 41.04 −0.27 −0.65
1951 47.22 6.18 15.06
1952 52.60 5.38 11.39
1953 52.04 −0.56 −1.06
1954 62.47 10.43 20.04
1955 64.16 1.69 2.71
1956 68.54 4.38 6.83
1957 68.58 0.04 0.06
1958 91.00 22.42 32.69
1959 87.83 −3.17 −3.48
1960 100.02 12.19 13.88
1961 129.16 29.14 29.13
1962 129.23 0.07 0.05
1963 138.99 9.76 7.55
1964 155.17 16.18 11.64
1965 152.63 −2.54 −1.64
1966 136.18 −16.45 −10.78
1967 127.91 −8.27 −6.07
1968 137.17 9.26 7.24
1969 110.08 −27.09 −19.75
1970 121.84 11.76 10.68
1971 117.75 −4.09 −3.36
1972 119.50 1.75 1.49
1973 89.37 −30.13 −25.21
1974 68.76 −20.61 −23.06
1975 83.65 14.89 21.66
1976 108.38 24.73 29.56
1977 111.28 2.90 2.68
1978 98.24 −13.04 −11.72
1979 106.60 8.36 8.51
1980 114.42 7.82 7.34
1981 109.02 −5.40 −4.72
1982 119.46 10.44 9.58
1983 131.84 12.38 10.36
1984 149.52 17.68 13.41
1985 174.81 25.29 16.91
1986 206.01 31.20 17.85
1987 175.08 −30.93 −15.01
1988 186.28 11.20 6.40
1989 235.04 48.76 26.18
1990 209.70 −25.34 −10.78
1991 226.15 16.45 7.84
1992 221.02 −5.13 −2.27
1993 229.30 8.28 3.75
1994 181.52 −47.78 −20.84
1995 225.40 43.88 24.17
1996 232.53 7.13 3.16
1997 273.07 40.54 17.43
1998 312.30 39.23 14.37
1999 283.36 −28.94 −9.27
2000 412.16 128.80 45.45
2001 293.94 −118.22 −28.68
2002 215.18 −78.76 −26.79
2003 266.90 51.72 24.04
2004 334.95 68.05 25.50
2005 405.11 70.16 20.95
2006 456.77 51.66 12.75
2007 532.53 75.76 16.59
2008 370.76 −161.77 −30.38
2009 398.01 27.25 7.35
2010 404.99 6.98 1.75
2011 464.68 59.69 14.74
2012 453.09 −11.59 −2.49
2013 490.57 37.48 8.27
2014 618.08 127.51 25.99
2015 577.82 −40.26 −6.51
2016 659.61 81.79 14.15
2017 723.37 63.76 9.67
2018 712.93 −10.44 −1.44
2019 879.17 166.24 23.32

composition

The Dow Jones Utility Average consists of the following 15 values ​​(as of September 2015):

Surname Index weighting in% Coverage area
American Electric Power 7.67 Ohio, Texas, West Virginia, Virginia, Arkansas, and Louisiana
AES Corporation 1.64 Indianapolis, Northern Ireland, São Paulo, Chile etc.
American Water Works Company 7.46 29 US states, and Canada
CenterPoint Energy 2.57 Texas, Arkansas, Louisiana, Minnesota, Mississippi, and Oklahoma
Dominion Resources 9.82 Virginia, West Virginia, Ohio, and Pennsylvania
Duke Energy 9.97 Indiana, North Carolina, South Carolina, Florida etc.
Consolidated Edison 8.89 New York, New Jersey and Pennsylvania
Edison International 8.33 Southern California
Exelon 4.34 Philadelphia (PECO), Chicago (Unicom), Maryland etc.
FirstEnergy 4.47 Ohio, Pennsylvania and New Jersey
NextEra Energy 13.82 Florida, Illinois, New England, New York, New Jersey, Ohio, Pennsylvania, Washington DC etc.
NiSource 2.36 Ohio, Kentucky, Pennsylvania, Maryland, Virginia, and Indiana
PG&E Corp. 6.95 Northern California
Public Service Electric and Gas Company 5.60 New Jersey and Pennsylvania
Southern Company 6.13 Alabama, Georgia, Florida, and Mississippi

See also

Web links

Individual evidence

  1. ^ Dow Jones Indexes: Fact Sheets and Methodologies by indexes
  2. ↑ Uwe Lang: The best equity strategies. FinanzBook Verlag, Munich 2005, ISBN 3-89879-112-2
  3. ^ A b Federal Reserve Bank of St. Louis: Historical prices from 1929
  4. ↑ a b c Yahoo: Historical prices from 1929
  5. ↑ a b Dow Jones Averages: Milestones
  6. ↑ 1Stock1: Dow Jones Utility Average Yearly Returns
  7. ↑ Money-zine.com: Dow Jones Utilities Components