Apple stock split prompts Dow shake-up
Salesforce.com, Amgen and Honeywell will join the Dow Jones Industrial Average
The Dow Jones Industrial Average will look a lot different when the market opens for trading on Monday, August 31st.
|I:DJI||DOW JONES AVERAGES||33573.28||+10.42||+0.03%|
Apple's 4-1 stock split, will reduce the DJIA's tech representation, as a result, the team at S&P Dow Jones Indices announced late Monday, noting the new members will help "offset that reduction" and better reflect modern industries.
APPLE'S STOCK CLIMBS TO NEW RECORD AHEAD OF STOCK SPLIT
"They also help diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy."
Fund managers who mirror the Dow will need to adjust their holdings to reflect these changes, which is often bullish for the stock price in the near-term.
Here's a look at the Dow's soon-to-be newest members and those that will be saying farewell.
Salesforce.com will replace Exxon Mobil Corp.
|XOM||EXXON MOBIL CORP.||106.15||+0.90||+0.86%|
Amgen Inc. will replace Pfizer Inc.
Honeywell International Inc. will replace Raytheon Technologies Corp.
|HON||HONEYWELL INTERNATIONAL INC.||196.34||-0.84||-0.43%|
|RTX||RAYTHEON TECHNOLOGIES CORP.||97.44||+1.70||+1.77%|
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Apple shares, which recently lifted the company to a market value north of $2 trillion, have soared over 74% this year.
Investors are also eyeing Tesla as speculation swirls the electric automaker may be added to the S&P 500 after reaching a number of metrics needed for inclusion, such as consecutive quarters of profitability.
TESLA WOWS WITH 5-1 STOCK SPLIT
Elon Musk's company has seen its stock, which will split 5-1, has soared 381 this year.
The Dow Jones Industrial Average, first launched in 1896 with just about a dozen companies, has grown to 30 members which are considered a strong snapshot of the American economy.
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