Time now for Eye on Your Money with Financial Advisor Bryce Matteson of the local office of Oppenheimer & Co. Inc. The market is up one day and down the next. What do all those numbers mean anyway?
And the market has been all over the place the last several months. The question is what exactly is "the market" that we hear about in the media each and every trading day?
The most popular way we measure how the U-S stock markets are doing is through indexes and the most popular index quoted on a daily basis is something called the Dow Jones Industrial Average.
The Dow Jones Industrial Average is a price-weighted average of actively traded blue chip stocks. It was created by Wall Street Journal editor Charles Dow and first published in his newspaper in 1896 with 12 companies or components making up the index.
The Dow started out with large industrial companies. Today's index is more diverse with many of its components having little to do with large industry.