The year 1896 was notable for many things: The X-ray was discovered and the worlds first movie theater opened. Utah was admitted as Americas 45th state and the first modern Olympic Games were staged in Athens. It was also the year the first Tootsie Roll was produced.
But for the financial world, 1896 was a watershed because on May 26 of that year, the Dow Jones Industrial Average debuted. And, in this, its 115th year, the iconic index is just as vibrant and important as ever.
Looking back at The Dow from its early days of being published in The Wall Street Journal, it has become a daily fixture in American life, says John A. Prestbo, editor and executive director of Dow Jones Indexes. It is the gold standard in measuring economic health and prosperity with a track record unrivaled by any other index. The Dow continues to be the most quoted measure of the U.S. stock market globally and it remains the answer to the question: What did the market do today?
At a press conference today to commemorate The Dows 115th anniversary, Prestbo announced that May 26, 2011, has been officially proclaimed Dow Jones Industrial Average Day in New York City, the location of The Dows birth.
Someone once wrote that talking about the stock market without mentioning the Dow Jones Industrial Average is like talking about the weather without mentioning the temperature, Prestbo says. Thats hard to argue.
(CG)