Fittest loser
Article posted: 9/10/2013 1:51 PM

Dow average adds Goldman Sachs, Nike and Visa

From top left are a Bank of America building in Charlotte N.C.; a Hewlett Packard keyboard; large rolls of aluminum at the Alcoa Warrick Operations in Newburgh, Ind.; traders working in the Goldman Sachs booth on the floor of the New York Stock Exchange; a wallet containing a Visa card; and the Nike factory outlet store in Park City, Utah. The Dow Jones industrial average announced Tuesday it will drop drop Bank of America, Hewlett-Packard and Alcoa, its three lowest-priced stocks, and replace them with Goldman Sachs, Nike, and Visa.

From top left are a Bank of America building in Charlotte N.C.; a Hewlett Packard keyboard; large rolls of aluminum at the Alcoa Warrick Operations in Newburgh, Ind.; traders working in the Goldman Sachs booth on the floor of the New York Stock Exchange; a wallet containing a Visa card; and the Nike factory outlet store in Park City, Utah. The Dow Jones industrial average announced Tuesday it will drop drop Bank of America, Hewlett-Packard and Alcoa, its three lowest-priced stocks, and replace them with Goldman Sachs, Nike, and Visa.

 

ASSOCIATED PRESS

 1 of 1 
 
text size: AAA
By Associated Press

The Dow Jones industrial average is dropping Bank of America, Hewlett-Packard and Alcoa, its three-lowest priced stocks, as part of a six-company shakeup of the most widely known barometer of the U.S. stock market.

S&P Dow Jones Indices said Tuesday it will add Visa Inc., sneaker maker Nike Inc. and the investment bank Goldman Sachs Group Inc. in the first three-for-three company change to the index since April 8, 2004. The changes will take effect at the start of trading Sept. 23.

Advertisement

S&P Dow Jones Indices manages the average and said the changes won't disrupt the level of the 30-company index. It said a push to diversify the sector and industry group representation of the index helped prompt the changes.

A small committee decides which companies are added or dropped. David Blitzer, chairman of the index committee, said the changes will bring down the weight of the other 27 stocks in the index and make it a better measure of what's happening in the broader market.

The Dow is a price-weighted index, which means its value is based on the price of a company's stock rather than its market value.

Last September, the index replaced Kraft Foods with health insurer UnitedHealth Group Inc.

General Electric Co. is the only original member in the Dow. The industrial giant was briefly delisted but has stayed in the index since its reinstatement in 1907.

Charles H. Dow created the index with the intention of giving the stock market credibility and making investing more understandable. The original Dow Jones industrial average had 12 members and was published May 26, 1896. It featured companies such as American Cotton Oil, Chicago Gas and U.S. Rubber.

Comments ()
We are now using Facebook comments to offer a more inclusive, social and constructive discussion. Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.

This article filed under

Business Video
Area Business Calendar

BusinessDirectory

Connect with a business or service in your area fast. First select a town, then enter a search term or choose one of the listed popular searches:

Don't see your town listed? Visit our full directory to begin your search.

MostViewed

Today
Yesterday
Most Commented
Top Jobs

    View all Top Jobs Place a job ad

    DHExtras

       
    • Newspaper next section - Newspaper next section Report card checker - report card checker
    • Dh innovation award 2 - Dh innovation award 2 Zillow /real estate page
    • Discuss refer On Guard series
    • Newspaper archives -- Monday or anyday Mike North

    FacebookActivity