The Dow Jones Transportation AverageThe Dow Jones Transportation Average (DJTA) is the US stock ... More (DJTA) is the US stock marketHow do stock markets work? A stock market is a financial ... More index for the 20 largest transportation companies that are listed on the New York Stock ExchangeThe New York Stock Exchange (NYSE) is the largest stock exch... More.
The index is an important indicator for the , as well as an important indication of the overall health of the US economy. This is because logistical companies become busy during periods of economic growth, as transportation orders of resources and raw material increase during growth periods, and the overall performance of the index reflects this.
Resources and raw materials have to be transported to production facilities, long before the final product is delivered to the consumer. This is why the DJTA can be an early indicator of economic development.
The DJTA is a running average of the stock prices of the 20 companies listed. The inclusion or exclusion of companies does not follow any specific rules. It is rather vague and up to the publisher of the Wall Street Journal. Changes in the index’s composition are rare.
