Performance of Dow Jones Industrial Average: what happened in 2022?

The performance of Dow Jones Industrial Average may depend on various factors such as earnings, interest rates or the global economic conditions. Let’s see a short introduction about the index and how it has performed so far in 2022 (quarterly update).

Introduction

The Dow Jones Industrial Average (DJIA) is a stock market index that measures the performance of 30 large, publicly traded companies that engage primarily in the American manufacturing sector.

The DJIA has been used as a proxy for the US economy since it was invented by Charles Dow and Edward Jones in 1896. The index has been calculated since then. The economist often cite DJIA as one of the most important economic indicators in the world and it represents a cross-section of the US economy. Additionally, DJIA a benchmark index that measures the state of the stock market in general. But how has the Dow Jones Industrial Average performed so far in 2022?

Performance of Dow Jones Industrial Average in 2022

The U.S. benchmark indices Dow Jones Industrial Average fell by -21.49% in the first nine months of 2022. The decline started right after the beginning of year, the increasing risk of recession, the rising inflation rate in the USA as well as the fear of a global recession are among the negative factors.

The 30 components of the Dow Jones Industrial Average (DJIA) and their individual performance

The DJIA is a price-weighted average of 30 major American stocks that trade on the New York Stock Exchange (NYSE). This means in short, the price-weighted average is calculated by adding the prices of each stock together and then dividing them by the Dow Divisor.

The DJIA primarily measures companies from the American manufacturing sector. However, the committee, that is in charge of the selection of components, expanded the index in recent years to include more than just industrial stocks, such as Apple and Microsoft.

The energy and healthcare stocks outperformed the index in the first nine months of the year, while consumer cyclical and technology companies fell significantly.

Dow Jones Industrial Average components by performance in Q1-Q3 of 2022

Top 5 gainers

  • Chevron Corp +23,85%
  • Merck & Co Inc +14,87%
  • Amgen Inc +1,87%
  • UnitedHealth Group Inc +1,52%

Top 5 losers

  • Intel Corp -50,32%
  • Nike Inc -49,14%
  • Salesforce Inc -43,69%
  • Boeing Co -41,75%
  • Walt Disney Co -39,83%

 

 

Table

SymbolNamePerformance in Q1
(01.01. - 31.03.)
Performance in H1
(01.01. - 30.06.)
Performance in Q1-Q3
(01.01. - 30.09.)
Sector
CVXChevron Corp37.97%23.69%23.85%Energy
MRKMerck & Co Inc7.69%20.64%14.88%Healthcare
AMGNAmgen Inc7.59%9.12%1.87%Healthcare
UNHUnitedHealth Group Inc1.84%2.93%1.53%Healthcare
TRVTravelers Companies Inc17.94%9.75%-0.03%Financial Services
JNJJohnson & Johnson3.99%4.82%-2.9%Healthcare
KOCoca-Cola Co5.36%7.68%-3.43%Consumer Defensive
WMTWalmart Inc3.36%-15.32%-9.27%Consumer Defensive
IBMInternational Business Machines Corp-3.28%6.31%-9.42%Technology
MCDMcDonald’s Corp-7.42%-7.06%-12.66%Consumer Cyclical
HONHoneywell International Inc-5.4%-15.06%-18%Industrials
AXPAmerican Express Co11.45%-16.84%-19.07%Financial Services
VVisa Inc0.32%-10.77%-19.35%Financial Services
CATCaterpillar Inc8.17%-12.81%-19.42%Industrials
DOWDow Inc13.4%-7.2%-19.97%Basic Materials
PGProcter & Gamble Co-5.7%-10.76%-21.14%Consumer Defensive
DJIADow Jones Industrial Average-5.22%-15.88%-21.49%
AAPLApple Inc-3.95%-24.68%-23.76%Technology
GSGoldman Sachs Group Inc-16.01%-23.97%-24.42%Financial Services
VZVerizon Communications Inc-1.7%-0.87%-24.9%Communication Services
MSFTMicrosoft Corp-7.71%-22.94%-29.98%Technology
HDHome Depot Inc-26.31%-32.06%-31.2%Consumer Cyclical
JPMJPMorgan Chase & Co-15.2%-29.43%-33.93%Financial Services
CSCOCisco Systems Inc-11.2%-31.63%-35.29%Technology
MMM3M Co-15.43%-25.75%-35.95%Industrials
WBAWalgreens Boots Alliance Inc-14.78%-27.01%-38.81%Healthcare
DISWalt Disney Co-12.51%-39.79%-39.83%Consumer Services
BABoeing Co-7.88%-34.23%-41.75%Industrials
CRMSalesforce Inc-16.89%-35.4%-43.7%Technology
NKENike Inc-18.1%-37.65%-49.14%Consumer Cyclical
INTCIntel Corp-6.16%-28.6%-50.32%Technology
Source: Yahoo Finance database (Historical data: Adjusted close price)

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