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Shake-up for Dow Jones industrial average | Shake-up for Dow Jones industrial average |
(35 minutes later) | |
The Dow Jones industrial average, one of the world's best known measures of stock market performance, is having a revamp. | The Dow Jones industrial average, one of the world's best known measures of stock market performance, is having a revamp. |
Alcoa, Bank of America and Hewlett-Packard are being dropped from the index of the top 30 US companies. | Alcoa, Bank of America and Hewlett-Packard are being dropped from the index of the top 30 US companies. |
From 23 September they will be replaced by Goldman Sachs, Nike and Visa. | From 23 September they will be replaced by Goldman Sachs, Nike and Visa. |
It is a matter of corporate prestige to be part of the elite group of firms making up the index, often referred to as the Dow. | It is a matter of corporate prestige to be part of the elite group of firms making up the index, often referred to as the Dow. |
A small committee decides which companies are added or dropped. | A small committee decides which companies are added or dropped. |
The three firms chosen to leave have low share prices, leaving them with little influence on the overall index. | The three firms chosen to leave have low share prices, leaving them with little influence on the overall index. |
The composition of the Dow has only been changed 49 times in its 117-year history. | |
Kraft Food was the last firm to be removed back in September 2012, when it was replaced by UnitedHealth. | Kraft Food was the last firm to be removed back in September 2012, when it was replaced by UnitedHealth. |
The changes will not make much difference to investors as the broader S&P 500 index is more closely watched by professionals and is used to form investment products. | The changes will not make much difference to investors as the broader S&P 500 index is more closely watched by professionals and is used to form investment products. |