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HindustanTimes Thu,24 Apr 2014

Dow Jones index gets new entrants in big makeover

Reuters  New York, September 11, 2013
First Published: 23:12 IST(11/9/2013) | Last Updated: 23:13 IST(11/9/2013)

In the biggest shake-up of the Dow Jones industrial average in nearly a decade, Goldman Sachs, Visa and Nike will join the storied 30-stock index, with Bank of America, which just two years ago was the largest US bank by assets, one of the names exiting the Dow.

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The three newcomers — an investment bank, credit card payment processor and apparel company, respectively — will also replace Alcoa, in the index since 1959, and Hewlett-Packard Co.

The changes will take effect at the opening of trading September 23, said S&P Dow Jones Indices, whose index committee makes decisions on the make-up of the average.

With the changes, the committee again passed on a chance to include Apple Inc and Google Inc, the first- and third-largest US companies by market value. Apple stock trades above $500 and Google closed on Monday above $888.

“We looked at a handful above $200, Google and Apple among them,” said David Blitzer, chairman, S&P Index Committee.

The Dow, created in 1896, is still considered Main Street’s view of the stock market.

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