Dow Jones Utility Average

The Dow Jones Utility Average was created in 1929 and is composed of 15 utility stocks. It is more obscure than the Dow Jones Industrial Average.

Since utilities generally have high amounts of debt, they are sensitive to interest rate changes, and a bottom in the DJUA usually coincides with a bottom in bond prices. These are believing to be a leading indicator of the broad market in a certain sense that they reflect a bottoming of interest rates.