The Dow Jones Industrial Average (DJIA) is not just a market benchmark, but a historical ledger chronicling America’s economic transformation from its industrial roots to today’s tech-dominated landscape. Established shortly after The Wall Street Journal’s debut in 1889, the Dow initially listed 12 “smokestack” companies in 1896. Fast forward over a century, and the index now tracks 30 stocks, several of which are technology companies that have replaced industrial stocks. This evolution of the Index is evident in the chart, and the recent addition of Amazon to the Dow Jones furthers this point. Since 1928, there have been a mere 93 changes to the Index, with most of the changes occurring in the second half of its history. 

General Electric was notable from the original lineup for its long-standing presence, although it’s no longer part of the current roster. By 1932, in the grip of the Great Depression, the Dow underwent its largest reshuffle, replacing eight companies and signifying a major economic pivot. Fast forward to 1997, the DJIA saw a significant shift, introducing household names like Johnson & Johnson and Wal-Mart, indicative of the evolving corporate landscape. By 1999, the “New Economy” had arrived, with tech behemoths Microsoft and Intel added to the index, marking a decisive turn towards the burgeoning technology sector. 

The early 2000s continued this trend, with old-guard companies making way for new industry leaders in 2004, including AIG, Pfizer, and Verizon. In 2015, Apple Inc. was added, and more recently, in 2024, Amazon, underscoring the index’s ongoing modernization to stay aligned with market leaders and emerging sectors. 

Today, the DJIA is not just a financial index, but a chronicle of American industry’s past, present, and continuous march toward innovation and technology. 

By Ryan Zywotko, CFA, CMT

Director of Investments