Wall Street, the world’s greatest capital market, is inevitably a mirror to the global economy. What happens in the world is quickly reflected in Wall Street as market forces and new technology cause old industries to fade and new ones to rise. And nothing illustrates better just how much the economy has changed in the last half-century than what’s happened to the major companies traded on Wall Street.
A Rip Van Winkle who dozed off in 1955 would probably be startled to learn that, of the 30 stocks that then made up the Dow Jones Industrial Average, only 5 —DuPont, General Electric, General Motors, Standard Oil of New Jersey (now Exxon), and United Aircraft (now United Technologies)—are still on the list in 2005. Several of the mightiest companies in the Dow today, such as Home Depot, Intel, Microsoft, and Wal-Mart, did not even exist in 1955. And Rip would surely be flabbergasted to learn that General Motors, the mightiest industrial corporation on the face of the Earth in 1955, would have had its bonds demoted to junk status in 2005.