Stock Market News From Jan 31, 2024: Dow Closes 300 Points Down; Tesla, Microsoft, Boeing, and More Movers; Crypto News


The first large-scale change was in 1932 when eight stocks in the Dow were replaced. 21After peaking on February 12, 2020, the Dow Jones rapidly fell into correction later that same month and into bear market territory in the next month amid the COVID-19 pandemic. 20The Dow first traded above 29,000 on Friday, January 10, 2020 and again on Tuesday, January 14, 2020 but dropped back before closing on both days, it then closed above 29,000 on Wednesday, January 15, 2020.

Even though averages are just that — averages — the Dow Jones Industrial Average has returned an impressive 9.27% on a compound annual basis over the trailing 35-year period (Sept. 24, 1984 to Sept. 23, 2019). When extrapolated outward, this works out to a doubling in value every 7.77 years. This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice.

  1. Often referred to simply as the Dow, it is one of the most-watched stock market indexes in the world.
  2. While it wasn’t as dramatic as the Great Depression, the drop happened much more quickly.
  3. On July 3, the Dow hit a new high when the Trump administration announced it would resume trade negotiations with China, averting additional tariffs (taxes on imports).
  4. Title 42, a public health order that was used during the pandemic to allow border officials to immediately return migrants caught trying to enter the country illegally.

Traders were confident in a business-friendly Republican president. The Dow Jones Industrial Average hit 10,000 for the first time free affiliate tracking in March 1999. The DJIA then hit 11,750 in January 2000, before falling to below 7,200 in Oct. 2002 after the dot-com crash.

Record Highs Set in 2015

Furthermore, the December total is 201,000, or 1.6%, above the number of manufacturing jobs in February 2020, before the pandemic forced plant closures and layoffs. The number of unfilled jobs was just under 8.8 million as of the last business day of November, the most recent month on record. That’s still an increase of over 1.6 million openings — or nearly 23% — during Biden’s time.

(4 record closes)

All these events created a lot of uncertainty for investors and the Dow bore the brunt of it, falling into a bear market in September 2022. Despite all time highs early in the year, six of the 20 worst-one day point losses for the Dow occurred in 2022. 22This was the fastest 1,000 point gain taking only 5 trading days from closing above 32,000 to close above 33,000. The Fed decided to keep the monetary policy unchanged at 5.25%- 5.50% on Wednesday. The EIA reported a 1.2 million-barrel build in crude stocks against expectations of an 800,000-barrel draw estimated in a Wall Street Journal survey of analysts.

Furthermore, critics believe that factoring only the price of a stock in the calculation does not accurately reflect a company, as much as considering a company’s market cap would. In this manner, a company with a higher stock price but a smaller market cap would have more weight than a company with a smaller stock price but a larger market cap, which would poorly reflect the true size of a company. The DJIA launched in 1896 with just 12 companies, primarily in the industrial sector. Since then, it’s changed many times—the very first came three months after the 30-component index launched.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. The S&P 500 index SPX finished up 1.4%, while the Nasdaq Composite Index COMP ended 1.4% higher. That marked their biggest daily increases in about a month, according to Dow Jones Market Data. The major stock indexes kicked off the year with sluggish performance but began to turn upward in the middle of last week.

International Business Machines Corporation (NYSE:IBM)

Journalist Charles Dow and his business partner, Edward Jones, established the Dow Jones Industrial Average in 1896, starting with 12 companies in the industrial sector. The number of companies included in the index increased to 20 in 1916 and then to the current level of 30 in 1928. Since its inception just before the onset of the 20th century, the DJIA has remained one of the most frequently discussed and commonly tracked equities indexes. Since posting its all-time high early in 2022, the Dow has seen significant declines and rallies but has been unable to capture that high point as of July 19, 2023.

This stock market index, also known as the Dow or DIJA, tracks 30 large blue-chip companies on the NYSE and Nasdaq. Although the Dow isn’t as big as the S&P 500 or the Nasdaq, neither of them has been as influential or popular enough to be the subject of a Broadway musical. At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually. Additionally, it was slightly less volatile than the broader S&P 500, as evidenced by its 10-year beta of 0.95. The index fund bears a below-average expense ratio of 0.16%, meaning the annual fee on a $10,000 portfolio would be $16.

This also means that stock splits can have an impact on the index, whereas they would not for a market cap-weighted index. The stock markets have rallied since our last report, finishing 2023 strong and setting records in 2024. The family was launched in 1999 as the first global sustainability benchmark and tracks the stock performance of the world’s leading companies in terms of economic, environmental and social criteria. The Dow is the second-oldest U.S. market index still in use, after the Dow Jones Transportation Index. It was formed in 1896 with 12 mostly industrial stocks and has been fixed at 30 since 1928. The index evolves over time and its stocks are sometimes removed and replaced.

The following is a list of the record closes of the Dow Jones Industrial Average grouped by year since May 26, 1896. 14This was the Dow’s close at the peak on January 14, 2000 before the dot-com crash. Companies including Abbott and Nestle have said in recent months that they would develop companion products for people trying to shed pounds.

Given its exclusively large-cap focus, the roster of companies included in the Dow fails to include companies of other sizes. Many market observers believe that the S&P 500 is a better representation of the economy, as it includes 500 companies rather than just 30. During the recession around the turn of the 21st century, the DJIA fell from 11,723 in Jan. 2000 to 9,389 in March 2001, dropping 20%. The recession from 1973 to 1975 was also especially troublesome for the DJIA, falling 45% from its 1,051 peak in 1973 to just under 600 in 1974. The Dow also lost 26.5% during the Cuban missile crisis of 1962. Since the Great Depression, 2007 to 2008 has been the most dramatic period of collapse for the DJIA.

Oil Futures Lose Ground After Inventories, but Post Monthly Gain

That was 38% higher than the full-year figure for 2020, the year before Biden took office. The number of people without health insurance decreased by 0.7 percentage points or 2.4 million people from 2020, the year before Biden took office, to 2022. Those figures come from the Census Bureau’s annual reports, which measure those who lacked insurance for the entire year. “Refugee admissions now are nearing a monthly pace that will, if sustained over the course of a year, enable arrival of 125,000 refugees, a 30-year high,” the State Department said in a November report to Congress. The mention of “a 30-year high” in the report refers to 1992, when the Clinton administration admitted 132,531 refugees, according to data compiled by the Migration Policy Institute. In the first three months of fiscal year 2024, the administration accepted 21,790 refugees — or 7,263 per month.

The U.S. central bank on Wednesday kept its key policy rate unchanged at the range of 5.25% to 5.5%, a 22-year high, while officials penciled in three rate cuts in 2024, according to its revised dot-plot forecast. The market rally coincided with a consumer survey released by the University of Michigan on Friday showing that confidence soared 13% in January, reaching its highest level since July 2021. Although the Dow does have clear flaws, it’s still an index that investors trust, as well as invest in via tracking exchange-traded funds such as the SPDR Dow Jones Industrial Average ETF. Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform.

Only three days traded more than 200 million shares, a level similar to the late 1990s. It hit two of them in the first few weeks in January, closing above 25,000 on Jan. 4. The index breached 26,000 on Jan. 17, then continued on to set 15 closing records in the rest of 2018.