The Dow Jones Industrial Average is a peculiar stock market index for several reasons.
For one, it’s a price-weighted index, which means a stock with a high per-share price will have a greater influence on the index’s fluctuations. And currently, a one-point move in any single Dow stock moves the Dow by 6.4219 points.
As of yesterday’s market close, the three highest priced stocks in the Dow were Visa ($195), IBM ($186), and Goldman Sachs ($162).
Early in trading, IBM and Goldman Sachs are each down sharply in the wake of their earnings announcements.
IBM is down $US13.45, which hacks 86 points from the Dow.
Goldman is down $US4.09, which shaves 26 points from the Dow.
So, two stocks are responsible for a 112 decline in the Dow.
Now you see why people hate the Dow.