The Dow Jones Industrial Average is set to drop Alcoa, Bank of America and H-P, while welcoming three new companies: Goldman Sachs, Visa and Nike. The move will take affect after the market closes on Sept. 20.
The investment bank, one of Wall Street’s most prominent institutions, had $955 billion in assets under management as of June 30. Goldman shares are up 25% so far this year as of Monday’s close, outpacing the Dow and broader S&P 500.
The aluminum maker has been a Dow component for 54 years but has recently struggled amid waning demand for the metal. Shares have fallen 6.9% on the year.
Visa is a global payments technology giant now valued at more than $118 billion. Shares of the company have jumped 17.8% year-to-date.
The banking titan, which acquired Merrill Lynch at the height of the financial crisis, serves roughly 51 million customers with 5,300 retail banking offices and approximately 16,350 ATMs. Bank of America has traded 24.7% higher since the start of the year.
The Oregon-based maker of athletic gear, ranked 59th on the S&P 500, was added to diversify the Dow’s selection of consumer discretionary companies, according to David Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. Nike shares have also surged this year, climbing 26.7%.
The struggling PC maker began a turnaround with the selection of former eBay chief Meg Whitman as CEO. But PC sales across the industry have quickly declined, although H-P’s stock is up 56.9% on the year.
The famed stock-market average is about to get a major facelift. • Shuffling the Blue Chips