Coming into today's open the Dow Jones Industrial Average is up 4,234.12 points from its December 24 low, 21792.20.
A nice move, 19.43%
But strength in the order book of the largest U.S. manufacturing exporter, Boeing, combined with the market's willingness to pay up for those revenues and you get some really interesting effects.
With the stock up 49.78% ($146.46) from the $294.16 Dec.24 closing low:
and as the highest priced component of the Dow Jones run through the DJIA divisor .14748071991788, which being under 1.00 is actually a multiplier, that percentage move makes for a 993 point contribution to the Industrials.
Another 50% from here would add over 1500 points.
A similar 50% move from current levels for the two lowest priced components of the index, Pfizer ($43.36) or Coca Cola ($45.38) would net you around 150 points.
Just something to think about, one stock out of thirty accounts for 23% of the move.
Don't get me wrong, we like the DJIA as a handy shorthand for the "market", it's a good mental anchor for comparisons and tracks with the S&P 500 at above 90% but the construction does make for effects to be aware of.
