What is the Dow Jones Transportation average?

The Dow Jones Transportation Average is the oldest U.S. stock index, first compiled in 1884 by Charles Dow, co-founder of Dow Jones & Company. The index initially consisted of nine railroad companies and only two companies from outside the railroad industry.

How much do people spend on transportation a year?

Transportation spending varies significantly less across generations than healthcare spending. In gross terms, average annual transportation spending for each of the three generations is about $10,000 – more specifically, at $9,435 for millennials, at $11,775 for Generation Xers and at $10,044 for baby boomers.

Why is the Transportation average important?

As a result of the dominating presence of railroads, the Transportation Average was often referred to as "rails" in financial discussions in the early and middle part of the 20th century. The Transportation Average is an important factor in Dow theory .