Amazon joins 29 other 'blue chip' companies in the Dow Jones Industrial Average
Amazon
Amazon.com Inc. is joining the ranks of one of Wall Street's oldest and most exclusive stock indexes: The Dow Jones Industrial Average.
The e-commerce pioneer will officially take its position among the 30-company Dow before the open of trading Monday, replacing drugstore operator Walgreens Boots Alliance.
S&P Dow Jones Indices opened the door to Amazon's inclusion in the Dow and Walgreens' exit to rebalance the index in light of a 3-for-1 stock split by another Dow company, Walmart.
Seattle-based Amazon will share membership in the Dow with the likes of Apple, Boeing, JPMorgan Chase and Coca-Cola.
It’s a measure of 30 stocks of established, well-known companies. These stocks are sometimes known as “blue chips,” which are supposed to be on the steadier and safer side of Wall Street.
WHAT’S IN THE DOW?
Not just industrial companies like Caterpillar and Honeywell, despite the name.
The roster has changed many times since the Dow began in May 1896 as the U.S. economy has transformed. Out, for example, was Standard Rope & Twine, and in recently have been big technology companies.
Apple, Intel and Microsoft are some of the newer-economy names currently in the Dow. Before Amazon, the most recent additions to the Dow were Salesforce.com, Amgen and Honeywell International in August 2020. They replaced Exxon Mobil, Pfizer and Raytheon Technologies, now known as RTX.
The financial industry also has a healthy representation with American Express, Goldman Sachs, JPMorgan Chase and Travelers. So does health care with Amgen, Johnson & Johnson, Merck and UnitedHealth Group.
The shift is a reaction to a planned 3-for-1 stock split by another Dow company, Walmart.
Once Walmart executes its stock split on Monday, that will
Read more on abcnews.go.com
