Dow Jones Industrial Average

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If you’re curious enough to be reading my little blog, then you know that GM was dropped from the Dow Jones Industrial Average (“DJIA”) and replaced with Cisco Systems, Inc.  Well at least one company that made something is being replaced by another company that makes stuff.  Another component of the DJIA was dropped, Citigroup, Inc. and replaced by Travelers Insurance Co.  Replacing one money shuffling leech with another money shuffling leech.

So it got me to thinking how the makeup of the DJIA may have changed over the years so I did some light research.  October 1, 1928 is the first time that the DJIA was made up of thirty (30) companies.  Here they are:

October 1, 1928

Allied Chemical General Railway Signal * Sears Roebuck & Company
American Can Goodrich * Standard Oil (NJ) *
American Smelting International Harvester Texas Company
American Sugar International Nickel * Texas Gulf Sulphur *
American Tobacco B Mack Truck Union Carbide *
Atlantic Refining * Nash Motors * U.S. Steel
Bethlehem Steel * North American * Victor Talking Machine *
Chrysler * Paramount Publix (formerly Paramount Famous Lasky) Westinghouse Electric *
General Electric Company Postum Incorporated * Woolworth
General Motors Corporation Radio Corporation * Wright Aeronautical *

Look at what we got here – manufacturers, auto and truck manufacturers (3),  steel companies, GE, railways, rubber, commodities and an aircraft manufacturer.  Then you have three, what I would consider, consumer driven retail outlets – Sears, Woolworth and Victrola.  I don’t see one bank or insurance company.  All in all, the DJ Industrial Average, looks, well, Industrial95% of these companies seem like they made something.

Then as of the latest reshuffling:

June 1, 2009

3M Company Dupont Kraft Foods Inc.*
Alcoa Incorporated Exxon Mobil Corporation McDonald’s Corporation
American Express Company General Electric Company Merck & Company, Incorporated
AT&T Incorporated Cisco Systems, Inc.
Microsoft Corporation
Bank of America Corporation Hewlett-Packard Company Pfizer Incorporated
Boeing Corporation Home Depot Incorporated Procter & Gamble Company
Caterpillar Incorporated Intel Corporation United Technologies Corporation
Chevron Corporation International Business Machines Verizon Communications Inc.
Travelers Insurance Co.
Johnson & Johnson Wal-Mart Stores Incorporated
Coca-Cola Company J.P. Morgan Chase & Company Walt Disney Company

Now let’s look at what makes up the DJIA.  Well the first thing I notice is that auto/truck manufacturing is no longer represented.  The banks/insurers/money changers are well represented however with AmEx, BofA, J.P. Morgan and Travelers.  Then as far as consumer retail types I’d say we have Coke, Home Depot, McDonalds, Wal-Mart and Walt Disney and maybe even Johnson & Johnson, Kraft and Proctor & Gamble.  A couple of telecomms and electronic manufacturers.  It seems like a lot more useless junk in the latest DJIA then the original in 1928Now I only count seven companies that actually make something. And no, I don’t count Coca Cola as making anything other than cavities and obesity.

It’s no longer Industrial. So what’s it say about our country and what we’re making now.  We don’t seem to be making much now.  What’s that saying I heard about paying each other to do each other’s laundry.  To use the newest hyped vocabulary – It’s unsustainable.

I may be wrong, probably am, but I expect another leg down in the economy.  I don’t think nearly enough malls, stores, office parks, restaurants, mattress stores, cell phone stores and auto dealers need to close. I think we have many more great adjustments to suffer through.  Don’t let your guard down.

I live in the suburbs with the two lane divided roadway that is plastered with junky stores, big box stores, strip malls and restaurants.  It’s my belief, and I may be wrong, that one third of these will be closing over the coming years.  Next time you are driving around imagine one third of the crappy, little junk stores that get by on consumers spending their money closing.  Consumers are tightening their purses like a frog’s ass, and a frog’s ass is watertight.

GET OUTSIDE EVERYDAY!!

memorial day 092Pretty cool picture, huh.  Unless you have allergies.  The reason you can see the web so well, and the reason the web looks kind of fuzzy, is because it is totally covered by a thick layer of pollen.  You can see Spidey waiting in the center for her next visitor.  Yum!

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3 Responses to “Dow Jones Industrial Average”

  1. Mayberry Says:

    That’s a large part of what’s wrong with this country, we produce virtually NOTHING. It’s all smoke and mirrors….

    They keep building strip malls around here, but they sit 80% empty, having only their “anchor” store. Meanwhile, the older strip malls close down entirely. But our local mayor and criminal council tell us everything is peachy, and by the way, your tax appraisal just went up $14,000.

    The crash is coming……

  2. Tom (Ticom) Says:

    In this neck of the woods, being Central and Northwest Connecticut, we’re already seeing a good thirty to forty percent of retail space sitting vacant.

    Yet, there is plenty of opportunities for those willing to step up…

    -T

  3. estuawlHeerse Says:

    well, i have to say i’m not in agreement with these conclusions, but i like your viewpoint. this subject has too many variables and false info in the market that i do not know what to believe. i guess it’s a matter of being informed. [URL=http://forum.nepalpost.gov.np/viewtopic.php?f=16&t=19228&p=21488#p21488]buy acai[/URL]

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