Dow Jones Transportation Average (DJTA): History

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Will Kenton
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Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School for Social Research and Doctor of Philosophy in English literature from NYU.
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Updated May 08, 2023
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Somer Anderson
Somer G. Anderson
Reviewed by Somer Anderson
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​Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas.
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What Is the Dow Jones Transportation Average?

The Dow Jones Transportation Average (DJTA), sometimes simply known as the "Dow Transports" is a price-weighted average of 20 transportation stocks traded in the United States. 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. That is a testament to the dominance of railroads in the U.S. transportation sector in the late 19th and early 20th centuries. In addition to railroads, the index now includes airlines, trucking, marine transportation, delivery services, and logistics companies.

Key Takeaways

  • The Dow Jones Transportation Average (DJTA) is a price-weighted average of 20 transportation stocks traded in the United States.
  • In addition to railroads, the index now includes airlines, trucking, marine transportation, delivery services, and logistics companies.
  • The Dow Jones Transportation Average is closely watched to confirm the state of the U.S. economy, especially by proponents of Dow Theory.
  • Changes in the DJTA are rare, and they usually only happen following a corporate acquisition or other dramatic shifts in a component's core business.

Understanding the Dow Jones Transportation Average

Transportation is much less important to the overall stock market than it was when the DJTA was first created. However, transportation stocks can follow a different pattern than the rest of the market. Sometimes, they can help traders and investors to predict changes in the market.

Forecasting the direction of the Dow Jones Industrial Average is one of the primary uses for the Dow Jones Transportation Average.

The Dow Jones Transportation Average is closely watched to confirm the state of the U.S. economy, especially by proponents of Dow Theory. This theory maintains that as the industrials make and the transports take, the DJTA should confirm the trend of the Dow Jones Industrial Average (DJIA). A divergence indicates a potential reversal of the trend.

In other words, if the DJIA is climbing while the DJTA is falling, it may signal economic weakness ahead. A divergence means goods are not being transported at the same rate they are being produced, suggesting a decline in nationwide demand.

The DJTA closed at a then record high of over 12,800 on Dec. 9, 2020, not too long after the index fell below 6,800 in March 2020 as concerns over the global crisis devastated airline stocks during a deep bear market. The Dow Jones Industrial Average (DJIA) had continued to reach new highs until February of 2020. This divergence of the DJTA and the DJIA before the crash was another confirmation of Dow Theory.

The more famous Dow Jones Industrial Average (DJIA) grew out of the original 1884 Dow Jones Railroad Average.

Components of the Dow Jones Transportation Average

As of May 2023, the index consisted of 20 companies:

  1. Alaska Air Group, Inc. (ALK)
  2. American Airlines Group Inc. (AAL)
  3. Avis Budget Group, Inc. (CAR)
  4. C.H. Robinson Worldwide, Inc. (CHRW)
  5. CSX Corp. (CSX)
  6. Delta Air Lines, Inc. (DAL)
  7. Expeditors International of Washington, Inc. (EXPD)
  8. FedEx Corp. (FDX)
  9. J.B. Hunt Transport Services, Inc. (JBHT)
  10. JetBlue Airways Corp. (JBLU)
  11. Kirby Corp. (KEX)
  12. Landstar System, Inc. (LSTR)
  13. Matson, Inc. (MATX)
  14. Norfolk Southern Corp. (NSC)
  15. Old Dominion Freight Line (ODFL)
  16. Ryder System, Inc. (R)
  17. Southwest Airlines Co. (LUV)
  18. Union Pacific Corporation (UNP)
  19. United Airlines Holdings, Inc. (UAL)
  20. United Parcel Service (UPS)

Changes in the DJTA are rare, and they usually only happen following a corporate acquisition or other dramatic shifts in a component's core business. However, Union Pacific is the only one of the original DJTA components to continue in the index.

Should a component need to be replaced, the entire index is reviewed. Alaska Air Group, Inc. replaced AMR Corporation on December 2, 2011, after AMR Corp. filed for bankruptcy protection. Effective October 30, 2012, Kirby Corp. replaced Overseas Shipholding Group, Inc. Effective October 1, 2014, Avis Budget Group Inc. replaced GATX Corporation. On October 15, 2015, American Airlines Group Inc. replaced Con-way.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. S&P Dow Jones Indices. "Dow Jones Transportation Average."

  2. Library of Congress. "Dow Jones Industrial Average First Published."

  3. Dow Jones & Company. "Dow Jones Transportation Average."

  4. Federal Reserve Bank of St. Louis. "Dow Jones Transportation Average."

  5. Federal Reserve Bank of St. Louis. "Dow Jones Industrial Average."

  6. Library of Congress. "Dow Jones Industrial Average First Published."

  7. Barron's. "Dow Jones Transportation Average."

  8. Securities and Exchange Commission. "Debt Securities and Warrants."

  9. Alaska Airlines. "Alaska Airlines," Slide 2.

  10. S&P Global. "Kirby Corp Set to Join the Dow Jones Transportation Average."

  11. S&P Global. "American Airlines Set to Join the Dow Jones Transportation Average."

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