Dow Jones Industrial Average switches members

August 25, 2020

AAPL stock split effect shakes up USA30

The index representatives surprised the markets by announcing that they will switch three stocks in one of the most important indices from the American economy – USA30. The last time this happened was in 2013. Back then, Alcoa, Bank of America, and Hewlett-Packard were replaced by Goldman Sachs, Nike, and Visa.

Salesforce.com, Amgen, and Honeywell International will be the new additions to the index, making Exxon Mobil, Pfizer, and Raytheon Technologies leave USA30 to make more room. This will happen on August 31, before the first market bell.

Everything became possible after #Apple's decision to do a 4-for-1 stock split. Based on market analysts, this swap shows a transition of the market and also diversifies the index by adding new types of businesses from the American economy, as the statement from Dow Jones mentioned.

From late March until now USA30 has gained close to 55%, leaving it still 4% under its record of 29,568.57 on February 12. After this release, Exxon shares, Pfizer, and Raytheon lost about 2% while the replacements grew by 4%.

From the start of the year, Salesforce.com shares grew 28%, Amgen’s fell 2.3%, while Honeywell stocks are down by 10%.

Sources: marketwatch.com, cnbc.com

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