Dow Jones Transportation Average (DJT): A Comprehensive Guide
What is the Dow Jones Transportation Average (DJT)?
The Dow Jones Transportation Average (DJT) is a stock market index that tracks the performance of 20 major U.S. transportation companies. It was created in 1884 by Charles Dow and Edward Jones as part of the Dow Jones Industrial Average (DJIA), which tracks the performance of 30 major U.S. industrial companies.
History of the DJT
The DJT has undergone several changes over the years. In 1928, it was expanded to 20 companies from its original 12. In 1970, it was renamed the Dow Jones Transportation Average to reflect the broader range of companies it included.
Current Components of the DJT
The current components of the DJT are:
- American Airlines Group Inc. (AAL)
- Delta Air Lines Inc. (DAL)
- United Airlines Holdings Inc. (UAL)
- Southwest Airlines Co. (LUV)
- CSX Corp. (CSX)
- Norfolk Southern Corp. (NSC)
- Union Pacific Corp. (UNP)
- FedEx Corp. (FDX)
- United Parcel Service Inc. (UPS)
- J.B. Hunt Transport Services Inc. (JBHT)
- Landstar System Inc. (LSTR)
- Schneider National Inc. (SNDR)
- Swift Transportation Co. (SWFT)
- Werner Enterprises Inc. (WERN)
- Matson Inc. (MATX)
- Carnival Corp. & plc (CCL)
- Royal Caribbean Cruises Ltd. (RCL)
- Norwegian Cruise Line Holdings Ltd. (NCLH)
- ArcBest Corp. (ARCB)
Uses of the DJT
The DJT is used by investors to track the performance of the transportation sector. It is also used as a barometer of the overall health of the U.S. economy. A rising DJT indicates that the transportation sector is performing well, which is typically a sign of economic growth. Conversely, a falling DJT indicates that the transportation sector is struggling, which can be a sign of economic weakness.
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