Big Blue Saves The Dow Jones Industrial Average
This afternoon the Dow Jones Industrial Average(DJIA) is the weakest stock index in the market. It is important to note, that while this index is the most highly followed index by the public the index consists of just 30 large cap blue chip stocks. The index is also a price cap weighted index and not a market cap weighted index like the S&P 500 Index or the Nasdaq Composite. Therefore, as long as the highest priced stock in the index is trading higher on a particular trading session the over all index is likely to do well.
Today, the Dow Jones Industrial Average has been under pressure since the opening bell rang at 9:30 am, however, International Business Machines(NYSE:IBM) has rallied higher by nearly 2.00 points to $170.81 a share. This stock is the highest priced stock in the Dow Jones Industrial Average and will have the most effect on the index. If the DJIA is going to trade sharply off the lows it will certainly help if the high priced stocks make a move to the upside. If IBM was trading down a point or more today the DJIA would be significantly more this afternoon.
Some other stocks in the DJIA that are doing well today include Procter & Gamble Co.(NYSE:PG), J.P. Morgan Chase & Co.(NYSE:JPM), and Home Depot Inc.(NYSE:HD). The DJIA laggards are Caterpillar Inc.(NYSE:CAT), 3M Co.(NYSE:MMM), and United Technologies Corp.(NYSE:UTX).