The Dow Jones Industrial Average technically missed its first close at or above 23,000 by less than 40 cents. The Dow closed at 22,997.44, or 2.56 points below 23,000. Based on the Dow’s “divisor,” which the keepers of the Dow use to calculate the price of the index, the Dow would have reached 23K if the shares of the 30 components closed higher by a combined total of 37 cents (37.2 cents to be exact). The Dow is a price-weighted index, meaning price changes are determined by changes in price of its components’ stocks. For many other indexes like the S&P 500 , percentage changes of components with higher market capitalizations are weighted more than moves of components with lower market caps.
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