By Tomi Kilgore, MarketWatch
The bulk of the Dow Jones Industrial Average’s 1,000-point path to 20,000 was paved by just five of its 30 components, led by Goldman Sachs Group Inc.’s stock.
The Dow /zigman2/quotes/210598065/realtime DJIA -0.36% is a price-weighted average, rather than market-value weighted gauge like the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.53% . That means the actual stock price moves of the Dow’s components influence the Dow rather than the weighted-average percentage changes of the S&P 500’s members.
For example, a 1% change in Apple Inc.’s stock /zigman2/quotes/202934861/composite AAPL +0.51% would have nearly seven-times more influence on a market-value weighted index than Goldman Sachs shares, since Apple’s market capitalization was $640.8 million through Wednesday while Goldman’s was $93.9 million, according to FactSet. But because Goldman’s stock price of $236.21 was nearly double Apple’s price of $121.90, Goldman’s stock is nearly 2-times more influential on the Dow.
The Dow first closed above 19,000 on Nov. 22, meaning it achieved its latest 1,000-point milestone in 42 trading sessions. That would mark the second-fastest that the blue-chip average has achieved a 1,000-point milestone, behind the 24 sessions it took to rally from 10,000 to 11,000.
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Goldman’s stock /zigman2/quotes/209237603/composite GS +0.23% has run up $26.14 since Nov. 22, which added about 179 points to the Dow’s price. That might not be much of a surprise, as President Donald Trump’s policy promises of lower corporate taxes, reduced regulation and a big boost to infrastructure spending, which in turn could lead to higher interest rates, would all benefit Goldman.
The second-biggest contributor was Boeing Co.’s /zigman2/quotes/208579720/composite BA -1.62% shares, which have gained $17.84 to add about 122 points to the Dow. Next, the $15.62 gain in International Business Machines Corp.’s stock /zigman2/quotes/203856914/composite IBM -0.35% contributed 106.97 points to the Dow; the $10.33 gain in Walt Disney Co.’s stock /zigman2/quotes/203410047/composite DIS +0.09% added 70.74 points and Apple shares rose $10.05 to add 68.83 points.
Combined, those five stocks contributed about 548 points, which would be about 52% of the Dow’s 1,044.64-point rise since Nov. 22.
Five Dow stocks have declined since Nov. 22, with Wal-Mart Stores Inc. stock /zigman2/quotes/207374728/composite WMT -0.64% pacing the losers by shedding $3.23 to shave 22.12 points off the Dow.
Here’s how all 30 Dow stocks have moved since Nov. 22, and how much they added to, or cut, the Dow’s price since then:
|Dow 20,000: components’ contribution to latest 1,000-point milestone|
|Component (ticker)||Price change ($)||Percentage change (%)||Point contribution to Dow|
|3M Co. (MMM)||+4.82||+2.80||+33.01|
|American Express Co. (AXP)||+5.17||+7.2||+35.41|
|Apple Inc. (AAPL)||+10.05||+9.0||+68.83|
|Boeing Co. (BA)||+17.84||+122.2||+11.93|
|Caterpillar Inc. (CAT)||+4.53||+4.8||+31.02|
|Chevron Corp. (CVX)||+6.62||+6.0||+45.34|
|Cisco Systems Inc. (CSCO)||+0.81||+2.7||+5.55|
|Coca-Cola Co. (KO)||+0.75||+1.8||+5.14|
|DuPont Co. (DD)||+5.76||+8.1||+39.45|
|Exxon Mobil Corp. (XOM)||-1.34||-1.6||-9.18|
|General Electric Co. (GE)||-0.81||-2.6||-5.55|
|Goldman Sachs Group Inc. (GS)||+26.14||+12.4||+179.02|
|Home Depot Inc. (HD)||+6.50||+5.0||+44.51|
|Intel Corp. (INTC)||+2.32||+6.5||+15.89|
|IBM Corp. (IBM)||+15.62||+9.6||+106.97|
|J.P. Morgan Chase & Co. (JPM)||+7.50||+9.6||+51.36|
|Johnson & Johnson (JNJ)||+0.06||+0.1||+0.41|
|McDonald’s Corp. (MCD)||+2.10||+1.8||+14.38|
|Merck & Co. Inc. (MRK)||-0.62||-1.0||-4.25|
|Microsoft Corp. (MSFT)||+2.56||+4.2||+17.53|
|Nike Inc. (NKE)||+2.15||4.2||+14.72|
|Pfizer Inc. (PFE)||-0.04||-0.1||-0.27|
|Procter & Gamble Co. (PG)||+4.40||+5.3||+30.13|
|Travelers Companies Inc. (TRV)||+5.27||+4.7||+36.09|
|United Technologies Corp. (UTX)||+4.02||+3.8||+27.53|
|UnitedHealth Group Inc. (UNH)||+8.98||+5.9||+61.50|
|Verizon Communications Inc. (VZ)||+0.28||+0.6||+1.92|
|Visa Inc. (V)||+3.97||+5.0||+27.19|
|Wal-Mart Stores Inc. (WMT)||-3.23||-4.6||-22.12|
|Walt Disney Co. (DIS)||+10.33||+10.6||+70.74|
The Dow, which closed at 20,068.51, has rallied 1,044.64 points since it first closed at 19,023.87 on Nov. 22. Keep in mind the point contributions and the Dow price change since Nov. 22 are off slightly due to rounding, when calculating the contributions.