The evolution of Dow Jones
The evolution of Dow Jones
1. Components in 1928
The year 1928 marked a critical turning point for both indices:
Dow Jones Industrial Average (DJIA): On October 1, 1928, the DJIA expanded from 20 stocks to 30 stocks to better reflect the booming U.S. industrial economy. The 30 original components of the 1928 expansion were:
Allied Chemical
American Can
American Car & Foundry
American Locomotive
American Smelting
American Sugar
American Telephone & Telegraph (AT&T)
American Tobacco
Atlantic Refining
Bethlehem Steel
Chrysler
General Electric
General Motors
General Railway Signal
Goodrich
International Harvester
International Nickel
Mack Trucks
Nash Motors
Paramount Famous Lasky
Postum Incorporated (later General Foods)
Radio Corporation of America (RCA)
Sears, Roebuck & Co.
Standard Oil of New Jersey (later ExxonMobil)
Texas Corporation (later Texaco)
Texas Gulf Sulphur
Union Carbide
Victor Talking Machine
Westinghouse Electric
Woolworth
Dow Jones Railroad Average (DJRA): In 1928, what is today known as the Transportation Average was called the Dow Jones Railroad Average. It comprised 20 railroad companies, which reflected the dominance of rail transport in interstate commerce. Key components included major rail lines such as the Atchison, Topeka and Santa Fe Railway, Pennsylvania Railroad, New York Central Railroad, Union Pacific, Baltimore & Ohio, and Northern Pacific.
2. Evolution over Time
The Dow Jones Industrial Average (DJIA)
Expansion & Sector Shifts: The DJIA retained its 30-stock structure established in 1928, but its roster changed repeatedly to match shifts in the American economy. Early constituents were heavily focused on heavy manufacturing, mining, materials, and smoke-stack industries.
Depression & Mid-Century Adjustments: In 1932, during the Great Depression, eight components were swapped out at once, bringing consumer-facing brands like Coca-Cola and Procter & Gamble into the fold.
Tech & Services Shift: As manufacturing shrank as a proportion of U.S. GDP in the late 20th and early 21st centuries, heavy industrial companies were gradually replaced by tech giants, financial institutions, healthcare providers, and services (e.g., Microsoft, Apple, Amazon, Nvidia, Visa).
Continuity: Of the original 1928 30-stock DJIA group, none retain their exact original 1928 status unchanged (even General Electric, long the most persistent member, was dropped in 2018).
The Dow Jones Transportation Average (DJTA)
The 1970 Rebrand: By mid-century, trucking, air freight, and commercial airlines had broken the railroads' monopoly on freight and passenger movement. On January 2, 1970, Dow Jones formally renamed the Railroad Average to the Dow Jones Transportation Average.
Diversification: The index maintained its 20-stock layout, but non-rail freight and passenger transport companies replaced many declining rail lines. Airline operators (e.g., Delta, United), delivery/logistics corporations (FedEx, UPS), and trucking/rental firms joined the index.
3. Is the Dow Jones Transportation Index Active Today?
Yes, it is active and widely tracked today. It operates under the ticker $DJT (or DJTA) and is maintained by S&P Dow Jones Indices.
It remains a vital economic barometer, particularly for followers of Dow Theory—an classic analytical framework holding that a trend in the Industrial Average must be confirmed by a corresponding move in the Transportation Average to signal a sustainable market phase.
Modern DJTA Structure
The modern DJTA is composed of 20 companies spanning air freight, delivery services, passenger airlines, railroads, and logistics technology. Key modern components include:
Air Freight & Express Delivery: FedEx, United Parcel Service (UPS)
Passenger Airlines: Delta Air Lines, United Airlines Holdings, Alaska Air Group
Railroads: Union Pacific, Norfolk Southern, CSX Corporation
Ride-Share & Freight Logistics: Uber Technologies, C.H. Robinson, Hertz Global Holdings