Dow Jones Transportation Average

The sister average of the Dow Jones Industrial Average that contains 20 industrial stocks traded in the US. At its creation in 1884, it mainly contained railway stocks,but over the years it has expanded to include airlines, railways, trucking and delivery.

According to the Dow Theory, a signal given by the DJIA must be confirmed by the Transportation Average. However, as the US economy has grown larger and more diverse in the last century this signal is usually only complimentary and not often mentioned anymore.