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As things stand now, the index is calculated by a
multitude of vendors - such as Reuters and Bloomberg
-- as well as cable networks like CNBC and CNNfn. "If
you look at a Reuters or Bloomberg terminal and then
turn on CNBC," says Richard Tofel, a Dow Jones
spokesman, "you notice that the two are reporting real
time Dow Jones industrial averages, but the numbers
are different."
"This is because they are each calculating it, taking
the last prices of the 30 stocks, and they are doing
it as fast as they can. But they are doing it in a
slightly different order. There is nothing wrong with
that. But when people are trading very highly
leveraged instruments on this, it can make a
difference." Traders betting on one version of the
DJIA will be in for a surprise when they find out
another version was at a different level at the moment
they placed their bet.
The above is a quote from Money Daily
Rob.
Craig Nelson wrote:
>
> I received the response below from Prophet in regards to why Prophet's INDU
> cash prices differed from Bloomberg's data. Can you believe the BS answer
> I got?! I can't believe these guys actually do business! Only God knows
> what other data problems they have.
>
> Regards,
> Craig
> ---------------------- Forwarded by Craig Nelson/NY/SBCM on 12/16/97 12:37
> PM ---------------------------
>
> BetterData@xxxxxxx on 12/16/97 12:19:29 PM
>
> To: Craig Nelson/NY/SBCM
> cc:
> Subject: Re: Cash Index
>
> In a message dated 97-12-16 11:30:44 EST, you write:
> > >>partial snip
>
> > Also, I found major diffs between your
> > data and Bloomberg's for *INDU, on the High, Low, and Open; the Close
> was
> > OK. Some diffs were as much as 20 points or so. Can I ask why this
> would
> > happen? Do you check your data against a second source to verify
> accuracy?
> The prices we get show the theoretical highs and lows for these indices;
> Bloomberg probably gets the actuals highs and lows. So typically our ranges
> will be greater.
> >>small snip
>
> - Tim
--
"Words are like money; there is
nothing so useless, unless when
in actual use."
- Samuel Butler, 1902 -
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