Dow Jones Indexes has launched the Dow Jones U.S. Economic Stimulus Index, which will list 50 companies that are expected to receive stimulus money from the American Recovery and Reinvestment Act of 2009. The six key areas the index will focus on are: alternative energy, construction and materials, the energy grid, the environment, technology and telecommunications and the Internet.
The index will select companies that have already been screened for inclusion in the Dow Jones U.S. Total Stock Market Index and that have an average daily trading volume of at least $5 million. The biggest sector that the index will include is construction and materials (20 companies), followed by alternative energy (10 companies) and the energy grid, the environment, technology and telecom/Internet (five companies each).
The American Recovery and Reinvestment Act represents a significant strategic investment in the U.S. economy, and as such, is anticipated to have a positive impact on the stock market, said Michael A. Petronella, president of Dow Jones Indexes.
Ahead of the indexs launch, Dow Jones actually created it on Dec. 31, 2008. Between that date and May 26, it rose 1.62%.