Market Indexes

While there are over 29 indexes that track virtually every thing in the stock market, there are seven primary indexes that are worth following.

First, the NYSE composite index lists all stocks that are traded on the famous New York Stock Exchange. The NYSE covers industrial, financial, utility, and transportation in different indexes.

Second, the Nasdaq. The Nasdaq stock market composite index follows the ranging performance in its electronic system. Because of the companies the Nasdaq follows have more volatility, the index tends to have more volatility as well.

Third, The S&P 500. The Standard & Poor’s 500 Index has 500 stocks in it’s index. The index is made up of four industries; 1. Industrial. 2. Transportation. 3. Utility 4. Financial.  The make up is as follows; 80% are industrial companies, 4% are transportation, 8% are utility companies, and 8% are financial companies.

Fourth, The AMEX Composite. This index monitors companies that are listed in the American Stock Exchange.

Fifth, The Russell 2000 is essentially the bench mark for smaller company stocks. It follows the smallest 2/3rds of the 3,000 largest companies.

Sixth, Value Line. Value Line is an independent index that tracks about 1700 common stocks.

Seventh, The Wilshire 5000. The Wilshire includes pretty much every stock traded in the U.S. and is the broadest index by far.