Question

This has been an interesting time for the Dow Jones Industrial Average from December until now... please find THREE articles from different sources and summarize all three into two paragraphs. (Need help finding three articles).

The remaining THREE paragraphs of 7 to 8 sentences each should overview the BUSINESSES that have been most affected and the market models from your points of view! How does the Federal Reserve factor into the discussion?

Answer 1

Dow Jones Industrial Average is the index in the stock market that contains the values of the Thirty large and Government owned companies of the United States. Dow Jones and Industrial Average index gives the details information as to how these thirty big public owned companies are fared in the stock market. The end of November and the month of December 2018 has seen a bad performance by these companies although it was being out lauded that the U.S economy is still going strong and there was nothing much to worry about the performance of the public owned firms. It was also said that the corporate wealth was steadily increasing. In the mid December however, S&P went up by about 519, which meant by about 5.09 %. This also increase added NASDAQ’s figures by about 6%. The overall increase in the point have been around 1100 points. This huge increase in the points have been largely welcome. There has also been substantial increase in the price of the crude oil which has pulled down the profits of the Dow by some amount.

                                According to another Article, the Dow Jones Industrial Average had been performing very poorly since the mid-August owing to the people not able to put in their 100% trust on the decisions being made by the current dispensation in the Government. People fear that the government owned firms might suffer a terrible loss due to some of the adopted policies. This has led to the people pulling out their stocks since the last few months. This has led to the Dow Jones Industrial Average being down in points. However, in the mid December 2018, the Dow Jobs Industrial Average regain about 83 points, which is about 0.4 percent. The total session by the year end for Dow Jones Industrial Average closed by about 334 points up at 23,676 points. Another article pointed out that The Dow Jones Industrial Average was down by about 12.1 % by the mid December 2018. It pointed out that the Blue-chip index fell 1% to end at 23,344 which was an unexpected fall. Usually by the end of the November , and with Christmas approaching , there has usually been a trend of the stock market gearing up and booming, but this time , the Down Jones Industrial Average had not shown any such good signs until the end of the year when there was a push due to the year end shopping by the people which lifted the sticks of the Dow Jones Industrial Average.

The most affected business since the small rise in the Dow Jones Industrial Average has been the manufacturing sector. The dip in the performance of the Dow Jones Industrial Average was due to the lack of trust of the people on some of the Government initiatives. People were of the view that the decisions taken by the government in regard to some pf the policies may affect the performance of the public owned bug companies. Although the Government and the officials had assured the people to stay calm, however, there was a trend of people pulling out their stocks from the market.

However, the federal reserve holds a key importance in this situation where the performance of the key public firms is not expected. The Federal reserve can be utilized to pour in additional funds to sustain the level of high ongoing production without impacting its overall productivity. The Federal reserve can also be an important means to assure the people of the stability of the government and to keep trust on the decisions made by it. It has been seen that the Government has lately been able to convince the people that the decisions taken by it is for the long-term benefit of the citizens. This is evident from the performance of the performance of the Dow Jones Industrial Average since the mid December until now, which has seen a substantial rise in its points.

                                     The performance of the Dow Jones Industrial average in the last couple of months should be taken up as a learning curve for the government and the officials. They should ensure that the decisions taken in respect to the public firms must be trusted enough. The Government should be aware that these big thirty firms control a huge portion of the American Developed economy. The destabilization of these companies may bring down the economic condition of the country and may further result in the deficit of the balance of trade. Therefore, the Government must take outmost care on the decision making with regard to the companies in the Dow Jones industrial Average.