European Stars And Stripes (Newspaper) - October 21, 1987, Darmstadt, Hesse Wednesday. October 21. 1987 the stars and stripes Page 3 How does Dow Jones move Here Are facts new York a the Dow Janes Industrial average is the Best known and most highly publicised indicator of the performance and mood of Wall Street. The average which reflect is movements in 30 glue Chip stocks first appeared in the Wall Stercl journal in 1896. La was intended As its name suggests to Irasek the mocks or Industrial firms but. In recent years companies such As retailers Sears Roebuck & co. Ami , Woolworth & co. Have been included to give a broader picture of the economic spectrum. Despite its name the indic is nol a pure average it is Noi calculated by adding up the prices of the 30 component stocks and dividing by 30. The divisor used by Dow Jones & co. To adjusted whenever changes occur such As a substitution of one company in the list or a split of a component Slock. The changes in the Dusor increase the likelihood of Broad swings in the average. Earlier this year. The divisor passed a Milestone when ii dropped below one. To 0.953 and Ihen 0.929. Thai made the divisor a multiplier. Now a move of one Point up or Down by an individual Stock Means a gain or loss of More than a Point in the average. The lower the divisor the greater the changes the aver. will show. To produce a 100-Poinl gain or drop in the Dow today each of it components needs to Rise or fall Only a Little More than three Points. The companies whose Slock prices form the Dow Jones Industrial average Are Alcoa Allied signal american express american Telephone & Telegraph Bethlehem steel Boeing Chevron coca cola Dupont Eastman Kodak Enron Gen eral electric general motors Goodyear ism International paper Mcdonald s. Merck Minnesota mining & manufacturing Avistar Philip Morris Primerina Procter & Gamble Sears Roebuck to Ciao Union Carbide us United techno Logies Westinghouse and Woolworth. In suffering a sos Point one Day loss monday the Dow aver age Refl cled growing uncertainty and instability on Wall Street. Traders say per share decline the retailer s Slock closed at 129 and the family s stake was valued at $6.32 billion on monday with Wai Man Slock Down $2.37vi a share the Waltons had a loss of s517.8 million giving their holdings an Esti. Mated value of s5.8 million others listed by Forlow As billionaires also suffered considerable Pipit losses monday. For example Leslie we incr who Heads inc Mailer limited inc. Lost an estimated $195.7 million Forbes listed a cinch As the ninth richest american with big limited Stock Worth More than s2.1 billion on sept. Ii. Edgar Bronfman chairman of Seagram co. Ltd. Los an d ji26,.l million. Bronfman was listed As the i Ullh Rich Cal american with his slake in Seagram Worth s1.3 billion. Ted Arison who with his family had a $1.8 billion slake in carnival cruise lines on sept. 11, lost an estimated $34.3 million on monday Ari son is listed by Forbes As inc i3lh-Richgsl Ameri can. William Hewlett. No. 17 on inc Forbes list lost an estimated $-65.9 million. Forbes says his share in Hewlett Packard co. Was Worth ji.-15 billion on sept. 11. August Busch j r. The Cha Irman of Anheuser Busch companies inc., lost an estimated si89.4 million. He was no. 20 on the Forbes list with his 13 percent stake in inc brewery slim Ald to be Worth More than j1.3 billion. The pause that depresses Gjuul surrounds ihrck.undim stuck mar ocl traders As the pause during tuesday s hectic trading. In the Uke of monday s Wall Street crash ill the i in tvs Stales. London s key mud Ink \ recur did in the first lure minutes of business tuesday a drop rep a luts of Mure limn 554 billion in share values
