Dow Jones Closes at New Record (Fun Factoids)

March 5, 2013 6:00 PM EST Send to a Friend
The Dow Jones Industrial Average closed up 0.89 percent, or 125.95 points, Tuesday to a new record close of 14,253.77.

Twenty-seven of the 30 component stocks rose, two fell, one was unchanged. Today's top five contributors to The Dow's movement and their point contribution: United Technologies Corp. (UTX), (14.51), Boeing (NYSE: BA) (12.06), IBM (NYSE: IBM) (10.29), American Express (NYSE: AXP) (9.45), 3M (NYSE: MMM) (8.99). Today's bottom five laggards: Coca-Cola (NYSE: KO) (-1.08), Merck (NYSE: MRK) (-0.69), Alcoa (NYSE: AA) (0.00), Bank of America (NYSE: BAC) (1.08), UnitedHealth (NYSE: UNH) (1.38).

The DJIA and DJTA both closed at a record high today. Based on the Dow Theory, this confirms the broad market trend, according to S&P Dow Jones Indices. "Dow Theory (so named by people who followed Mr. Dow, but not by Mr. Dow himself) holds that the Dow Jones Transportation Average must "confirm" the movement of the Industrial Average for a market trend to have staying power. If the industrials reach a new high, the "transports" would need to reach a new high to "confirm" the broad trend. The trend reverses when both averages experience sharp downturns at around the same time. If they diverge – for example, if the industrial average keeps climbing while the transports decline – watch out! The underlying fundamentals of the theory hold that the industrials make and the transports take. If the transports aren't taking what the industrials are making, it portends economic weakness and market problems, Dow Theorists maintain."

The last time The Dow Industrial Average, and the Dow Transportation index both closed at record highs was July 19, 2007. Today marks the 250th time both indices closed at a record on the same day.

It has taken the DJIA 1,004 trading days to close at a fresh record from its bear market low of 6547.05 on 3/9/2009. The last time the DJIA rose to a record from a bear market low was the during the period 9/21/2001-10/3/2006; it took 1,267 trading days. The longest period for the DJIA from a bear market low to a fresh record was 11/13/1929-11/23/1954 – 7,253 trading days.

Nine DJIA components closed at 52 week highs; --- American Express, Boeing, Walt Disney (NYSE: DIS), Home Depot (NYSE: HD), Johnson & Johnson (NYSE: JNJ), JPMorgan Chase, 3M, Pfizer (NYSE: PFE), and Travelers Cos. (NYSE: TRV) Of the nine, Walt Disney, Home Depot, Johnson & Johnson, 3M, and Travelers Cos all closed at a record (based on preliminary closes).

Year-to-date the Dow is up 8.77 percent. It is up 117.71% from its 12-year closing low of 6547.05 on March 9, 2009.


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