Dow Jones Shake Up, Out Goes Bank of America, H-P and Alcoa

Andrew Klips |

The S&P Dow Jones Indices LLC, a part of McGraw Hill Financial (MHFI) announced Tuesday morning that there are changes coming to the 117-year-old, 30-company Dow Jones Industrial Average Index on Friday, September 20, 2013.  The company cited low stock prices and the desire to diversify the sector and industry group representation of the Dow as the reason for the changes.

In the biggest Dow component swap in nearly a decade, Goldman Sachs Group Inc. (GS) is replacing Bank of America (BAC) . Hewlett-Packard Co. (HPQ) will be replaced by Visa, Inc. (V) and Alcoa, Inc. ($AA) is being bumped for Nike Inc. (NKE) .

So far in 2013, shares of BAC are up 25.7 percent, HPQ is up 55.6 percent and AA is down 7 percent.

The changes will be effective on Monday, September 23 and won’t have and impact on the level of the Dow because the divisor used to calculate the index from its component’s prices on their respective home exchange will be changed prior to that date, according to today's statement.

The Dow Jones Industrial Index is overseen by S&P Dow Jones Indices LLC, CME Group Inc. (CME) and Dow Jones & Co., a division of News Corp. (NWSA) .

The Dow’s cage was last rattled to this extent in 2004 when AT&T Inc. (T) , International Paper Co. (IP) and Eastman Kodak Co. (EKDKQ) were booted in favor of American International Group, Inc. ($AIG), Pfizer Inc. (PFE) and Verizon (VZ) .  AT&T made its way back to the blue chip index, but International Paper and bankrupt Eastman Kodak never did.  AIG was eventually replaced by Kraft (KRFT) (who was later replaced by UnitedHealth (UNH) , but Pfizer and Verizon remain.

As of the effective date, the Dow Jones Industrial Average components:



  • 3M Co. (MMM)
  • American Express Co. (AXP)
  • AT&T (T)
  • Boeing Co. (BA)
  • Caterpillar Inc. (CAT)
  • Chevron Corp. (CVX)
  • Cisco Systems Inc. (CSCO)
  • E.I. du Pont de Nemours and Co. (DD)
  • Exxon Mobil Corp. (XOM)
  • General Electric Co. (GE)
  • Goldman Sachs Group Inc. (GS)
  • Home Depot Inc. (HD)
  • Intel Corp. (INTC)
  • International Business Machines Co. (IBM)
  • Johnson & Johnson (JNJ)
  • JPMorgan Chase and Co. (JPM)
  • McDonald’s Corp. (MCD)
  • Merck & Co. Inc. (MRK)
  • Microsoft Corp. (MSFT)
  • Nike Inc. (NKE)
  • Pfizer Inc. (PFE)
  • Proctor & Gamble Co. (PG)
  • The Coca-Cola Co. (KO)
  • Travelers Companies Inc. (TRV)
  • United Technologies Corp. ($UTX)
  • UnitedHealth Group Inc. (UNH)
  • Verizon Communications Inc. (VZ)
  • Visa Inc. (V)
  • Wal-Mart Stores Inc. (WMT)
  • Walt Disney Co. (DIS)

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Companies

Symbol Name Price Change % Volume
MHFI McGraw Hill Financial Inc. n/a n/a n/a 0
AA Alcoa Inc. 31.09 1.29 4.33 6,410,938 Trade
V Visa Inc. 95.58 1.63 1.74 11,637,316 Trade
GS The Goldman Sachs Group Inc. 217.19 -2.58 -1.17 4,448,712 Trade
NWSA News Corporation 13.59 0.14 1.04 1,415,768 Trade
NKE Nike Inc. 52.85 0.45 0.86 8,522,404 Trade
BAC Bank of America Corporation 22.82 -0.11 -0.48 85,399,612 Trade
HPQ HP Inc. 17.80 0.09 0.51 14,051,542 Trade
CME CME Group Inc. 124.12 0.06 0.05 1,085,568 Trade
ERGZF Erg Spa Ord n/a n/a n/a 0

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