2 Top Dow Stocks to Buy on the Dip, and 1 to Brush Aside
The Dow Jones Industrial Average (DJIA) is among the oldest stock market averages in the world. The index comprises 30 large-cap American companies, stocks like Walmart, American Express, and Microsoft.
The index is price-weighted, meaning that higher-priced stocks make up a larger percentage of the index than lower-priced stocks. For example, UnitedHealth, with a stock price near $540, makes up more than 10% of the index, while Coca-Cola, which trades near $63, makes up less than 1.3%.
Although the index is a fairly narrow measure of the U.S. stock market, it is often cited by media organizations to track market sentiment owing to its longevity and prominence. This year, the DJIA has come under pressure and is down about 7% year to date.
Source Fool.com
