DOW JONES UTILITY AVERAGE

Transcription

1 DOW JONES UTILITY AVERAGE Historical Components The Dow Jones Utility Average is the youngest of the three Dow Jones Averages, first appearing in January According to analysts who study the averages, a rise in utility stock prices indicates investors anticipate falling interest rates. That s because utilities are big borrowers and their profits are enhanced by lower interest costs. Conversely, the utility average tends to decline when investors expect rising interest rates. Because of this interest-rate sensitivity, the utility average is regarded by some as a leading indicator for the stock market as a whole. Unlike the Industrial Average, which has undergone well over 100 changes in its history, the utility average has been relatively unaltered. Most of the changes in recent years are the result of mergers and acquisitions. Originally, the utility average started with 18 stocks, and six months later, on July 1, 1929, the number was increased to 20. The average was reduced to 15 stocks on June 2, 1938, and has remained at that level ever since. For trivia buffs, the original utility average included American Telephone & Telegraph Co., which was removed in 1938 and added to the Dow Jones Industrial Average in March 1939, supplanting International Business Machines Corp. The Dow Jones 15 Utilities Average was started in late 1929, and was then worked back for the whole year. The original list consisted of 20 representative stocks. In figuring the period prior to July 1, 1929, it was necessary to adjust the divisor, since quotations on Commonwealth & Southern and Niagara Hudson Power, which were in the July 1 list, were unavailable earlier. The total of 18 available stocks was divided by for the period May 27 to July 1. This divisor was determined by the same method used in computing the divisor for the industrial average. Prior to May 27, other methods were used to compensate for various stock splits. JULY 1, 1929 American & Foreign Power American Gas & Electric Company American Power & Light American Telephone & Telegraph American Water Works Brooklyn Union Gas Columbia Gas & Electric Corporation Commonwealth & Southern Consolidated Gas Electric Power & Light Engineers Public Service International Telephone & Telegraph National Power & Light Niagara Hudson Power Corporation North American Company Public Service of New Jersey Standard Gas & Electric Company Western Union

2 JUNE 3, 1938 The average was reduced from 20 stocks to 15 Deleted from average: American Power & Light American & Foreign Power American Telephone & Telegraph Brooklyn Union Gas Commonwealth & Southern Consolidated Gas International Telephone & Telegraph National Power & Light Standard Gas & Electric Company Western Union DJUA as of June 2, 1938 American Gas & Electric Company American Water Works Columbia Gas & Electric Corporation Commonwealth & Southern pfd. Electric Bond & Share Electric Power & Light Added to average: Commonwealth & Southern pfd. Electric Bond & Share Engineers Public Service Niagara Hudson Power Corporation North American Company Public Service of New Jersey MAY 8, 1947 The changes effective May 8, 1947 were made specifically to drop stocks issued by holding companies which have to dispose of a considerable proportion of their assets to satisfy utility holding company act requirements. Deleted from average: American Water Works Commonwealth & Southern pfd. Electric Bond & Share Electric Power & Light Engineers Public Service North American Company DJUA as of May 8, 1947 American Gas & Electric Company Columbia Gas & Electric Corporation Consolidated Natural Gas Company Houston Lighting & Power Company Added to average: Consolidated Natural Gas Company Detroit Edison Corporation Houston Lighting & Power Company Niagara Hudson Power Corporation Public Service of New Jersey

3 JULY 13, 1948 Public Service Energy & Gas Company replaced Public Service of New Jersey. American Gas & Electric Company Columbia Gas & Electric Corporation Consolidated Natural Gas Company Houston Lighting & Power Company Niagara Hudson Power Corporation Public Service Energy & Gas Company DECEMBER 20, 1948 replaced Columbia Gas & Electric Corporation American Gas & Electric Company Consolidated Natural Gas Company Houston Lighting & Power Company Niagara Hudson Power Corporation Public Service Energy & Gas Company NOVEMBER 29, 1950 replaced Niagara Hudson Power Corporation American Gas & Electric Company Columbia Gas & Electric Corporation Consolidated Natural Gas Company Houston Lighting & Power Company Niagara Hudson Power Corporation Public Service Energy & Gas Company

4 MAY 19, 1958 replaced American Gas & Electric Company. Consolidated Natural Gas Company Houston Lighting & Power Company Public Service Energy & Gas Company DECEMBER 21, 1981 reorganized to reflect the utility operations and replaced the former Peoples Gas Company. Public Service Energy & Gas Company MAY 20, 1981 replaced. Public Service Energy & Gas Company

5 APRIL 15, 1986 replaced Public Service Energy & Gas Company. MAY 29, 1986 replaced. AUGUST 5, 1991 Arkla Incorporated replaced. Arkla Incorporated

6 JANUARY 3, 1994 replaced. Arkla Incorporated MAY 12, 1994 replaced Arkla Incorporated. SEPTEMBER 1, 1994 replaced.

7 JANUARY 2, 1996 DTE Energy Company replaced. DTE Energy Company FEBRUARY 5, 1996 replaced. DTE Energy Company APRIL 26, 1996 PanEnergy Corporation replaced. DTE Energy Company PanEnergy Corporation

8 JANUARY 2, 1997 replaced. DTE Energy Company PanEnergy Corporation MAY 12, 1997 Deleted from average: DTE Energy Company PanEnergy Corporation Added to average: Duke Power Corporation DJUA as of May 12, 1997 Duke Power Corporation JUNE 19, 1997 replaced Duke Power Corporation.

9 AUGUST 7, 1997 replaced JANUARY 2, 1998 replaced. JANUARY 20, 1998 Columbia Energy Group replaced. Columbia Energy Group

10 FEBRUARY 10, 1999 replaced. Columbia Energy Group JANUARY 31, 2000 replaced Consolidated Natural Gas Company. Columbia Energy Group MAY 18, 2000 replaced Columbia Energy Group

11 OCTOBER 21, 2000 replaced. Columbia Energy Group OCTOBER 23, 2000 replaced. Columbia Energy Group NOVEMBER 2, 2000 NiSource Incorporated replaced Columbia Energy Group. NiSource Incorporated

12 DECEMBER 3, 2001 FirstEnergy Corporation replaced FirstEnergy Corporation NiSource Incorporated OCTOBER 10, 2002 CenterPoint Energy Incorporated replaced. CenterPoint Energy Incorporated FirstEnergy Corporation NiSource Incorporated OCTOBER 10, 2007 FPL Group, Incorporated replaced. was acquired by an investor group led by KKR and TPG. CenterPoint Energy Incorporated FirstEnergy Corporation NiSource Incorporated FLP Group Incorporated

13 JUNE 3, 2010 FPL Group Incorporated name changed to NextEra Energy Inc. CenterPoint Energy Incorporated FirstEnergy Corporation NextEra Energy Incorporated NiSource Incorporated OCTOBER 1, 2014 American Water Works Company Inc. (NYSE:AWK) replaces The Inc. (NYSE:WMB) American Water Works Company Inc Centerpoint Energy Incorporated FirstEnergy Corporation NextEra Energy Incorporated Nisource Incorporated Public Service Enterprise Group Portions of this piece were originally published in The Dow Jones Averages Edited by Phyllis S. Pierce with a foreward by John A. Prestbo, Editor, Dow Jones Indexes Copyright 2014 by S&P Dow Jones Indices LLC, a subsidiary of the McGraw-Hill Companies, Inc., and/or its affiliates. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ), a subsidiary of The McGraw-Hill Companies, Inc. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ). S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates ( S&P Dow Jones Indices ) makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and S&P Dow Jones Indices shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication of future results. This document does not constitute an offer of any services. All information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that seeks to provide an investment return based on the performance of any Index. S&P Dow Jones Indices LLC is not an investment advisor, and S&P Dow Jones Indices make no representation regarding the advisability of investing in any such investment fund or other investment vehicle. For more information on any of our indices please visit