On this day 112 years ago, the Dow Jones Industrial Average broke 100 for the first time.
Where Was The Market?
The S&P 500 finished January 1906 at 9.80.
What Else Was Going On In The World?
In 1906, a massive earthquake in San Francisco killed as many as 3,000 people and destroyed more than 80 percent of the city. The Pure Food and Drug Act was passed by Congress, banning the “manufacture, sale, or transportation of adulterated or misbranded or poisonous or deleterious foods, drugs, medicines, and liquors.” The average life expectancy for U.S. males was 46.9 years.
It took the Dow just shy of 10 years from its inception in 1896 to hit the 100 mark for the first time.
The index’s creator, Charles Dow, first began calculating stock averages in 1884, accounting for nine railroad stocks and two industrial companies. His index of pure industrial stocks was first published on May 26, 1896. Only a single company, General Electric Company
, remains in the Dow today from the original group of 12 companies that made up the index.
The Dow initially struggled in 1896, dropping to an all-time low of 28.48 during the Panic of 1896. The Dow finished 1903 under 50, but rallied to double to above the 100 mark in just over two year’s time.
It would take the Dow another 21 years to reach the 200 mark in 1927.
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