Evaluate the Rise and fall of Dow Jones by Dow Jones Future Index

The Dow Jones Industrial Average or significantly referred as Dow is closely considered to be followed index by both financial companies as well as general public since the time of its creation in 1896. The Dow Jones Industrial Average merely tracks 30 major American companies which are includes in the index based upon their pricing values. The Dow Futures price attempt to indicate whether the Dow Jones will be valued at some point in the future. Hence, the underlying commodity is the DJIA itself. So, whenever the Dow Jones falls or rises, the Dow Futures will reflect those changes.

The Dow generally serves three major functions in today’s marketplace. It generally serves as a reminder and comparison for today’s marketplace as compared to the early markets. As it tracks only 30 large American companies, hence, all these companies are inclusive of all industries except utilities and transportation. This generally creates a broad overview of the economy.

However, there are number of ways to invest in Dow Jones Industrial Average. The most preferred and obvious ways is to buy shares of the companies. On the whole, it serves to be the original purpose as a market and as an economic indicator. There are several major factors that drive the price of Dow Jones future. Global economy is the major thing that needs to be considered while trading with Dow Jones. It is not at all enough to look just at the American performance, because most of the companies are multinationals and are being operated all across the world. Hence, it is an interesting and most important asset to address. Being completely intangible, they don’t require you to worry about the seasonal cycles, weather disruptions or any kind of supply of demand considerations.