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.
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.