What is Dow Jones Industrial Average (DJIA)?

The Dow Jones Industrial Average (DJIA), or the Dow, is a widely used index and barometer of stock market performance that consists of 30 stocks from multiple sectors. Companies included in the DJIA are known as blue-chip stocks because of their importance to the overall economy of the United States. The DJIA is calculated by adding the prices of the stocks and dividing the final value by a Dow divisor.