Is the Dow a good indicator of how the stock market is doing?

Question

It's compromised of a small number of stocks. Does the SP 500 or other indexes do a better job of reflecting the stock market because it's taking a larger sample of stocks>

Answer 1

The dow is a very Broad range and ONLY 30 stocks.  Not the best indicator.  Use all of the indexes to see an overall picture of the market

Answer 2

I use all three the Dow, NASDAQ, and S&P. to help me to determine the market position.  I think I weigh the S&P a little more hevier then the other two.

Answer 3

The key to remember here is that  the Dow, NASDAQ, and S&P      are only indicators. Individually they do not reflect how ALL stocks are preforming only those in their indices's.

Answer 4

Dow is one of the 2 biggest stock groups.

Answer 5

You answered your own question, kind of.  The Dow 30 is comprised of Large Cap multinational names like Coke (KO).

These companies tend to do better than some of the mid cap names that appear with larger ones in the S&P 500.

When it comes to an overall picture of the economy, the S&P does a better job of reflecting the market's performance.

Good Luck!