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Happy Anniversary Dow 14000!

This past Saturday marked the one-year anniversary of the Dow Industrials’ first close above 14,000. Needless to say, it has been quite a ride for the Dow since it first reached that milestone; the Dow continued to establish new all-time highs into October before falling to 2-year lows this month.

Since July 19, 2007, the Dow Industrials has fallen over 2,500 points – just under 18%. So how have the thirty Dow components performed since last year’s milestone? Only five Dow components are up over the past year. The declines in three of the financials in the Dow (AIG, Citigroup, & American Express) have contributed nearly a third of the index’s total point decline since last July. Here’s how the rest have done since then:

Since 7/19/07 Point Impact
% Change $ Change on Dow
IBM +12% $14.03 +114 points
WMT +19% $9.13 +74 points
MCD +15% $7.77 +63 points
JNJ +9% $5.43 +44 points
PG +1% $0.88 +7 points
INTC -13% -$3.17 -26 points
DIS -10% -$3.57 -29 points
KO -7% -$3.67 -30 points
HPQ -10% -$4.98 -41 points
MSFT -18% -$5.65 -46 points
VZ -16% -$6.61 -54 points
PFE -27% -$6.67 -54 points
CVX -7% -$6.95 -57 points
T -19% -$7.53 -61 points
JPM -18% -$8.60 -70 points
DD -17% -$8.94 -73 points
XOM -12% -$10.75 -88 points
AA -24% -$10.81 -88 points
MRK -24% -$11.66 -95 points
GE -31% -$12.71 -103 points
UTX -17% -$13.09 -107 points
CAT -18% -$16.09 -131 points
HD -41% -$16.26 -132 points
BAC -44% -$21.78 -177 points
GM -63% -$22.20 -181 points
MMM -24% -$22.23 -181 points
AXP -36% -$23.36 -190 points
C -62% -$31.78 -259 points
BA -34% -$34.34 -280 points
AIG -64% -$44.59 -363 points

***Keep in mind that unlike most major indices, the Dow is a PRICE-weighted index. This method gives higher-priced stocks more impact on the index’s overall performance. Therefore, Dow components with greater changes in price (not percent) will affect the Dow’s performance more.***

Finally, be aware that the Dow’s components a year ago weren’t exactly the same as its current components. Recall that Dow Jones made two changes to the Dow Industrials back in February. Out were Honeywell and Altria, and in were Chevron and Bank of America. Since being removed from the Dow, Honeywell is down $5 (or 10%) and Altria is down $2 (or 9%). Since being added to the Dow, Chevron is up $2 (or 3%) and Bank of America is down $15 (or 36%).

bythenumbers.cnbc.com