Stop the presses!   5 comments

I just got a “breaking news” alert from CNN Money:

Goldman Sachs, Visa and Nike to be added to Dow Jones Industrial Average on Sept. 23, replacing Alcoa, BofA and HP.

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Posted September 10, 2013 by edmcgon in Market Analysis, Stocks

5 responses to “Stop the presses!

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  1. I guess I get hp and aa getting the boot. But BAC?? That is a 155b market cap company and generally one of most active. GS is only 72b. Seems very strange.

    • The “vampire squid” has tentacles everywhere! 😉

    • Maybe they wanted a larger financial weight. With GS being $164 and BAC 14, won’t GS be a 10 times higher weight than BAC was? Or maybe they will do a split first. Without googling it, not sure how that works when adding new components.

      • M – you are correct. It is dollar weighted, which is probably also why AAPL and goog are not added. The real problem is the Dow should just give either equal weight or market cap weight the components.

  2. Even more surprising: Apple and Google weren’t even considered.

    http://blogs.wsj.com/moneybeat/2013/09/10/apple-google-left-out-of-dow-festivities/

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