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Alcoa (AA), BofA (BAC), H-P (HPQ) Dropped from Dow; Goldman (GS), Nike (NKE), Visa (V) Added

September 10, 2013 8:35 AM EDT
(Updated - September 10, 2013 8:36 AM EDT)

Alcoa, Inc. (NYSE: AA), Bank of America (NYSE: BAC), Hewlett-Packard (NYSE: HPQ) and being dropped from the Dow Jones Industrial Index.

Goldman Sachs (NYSE: GS), Visa (NYSE: V), and Nike (NYSE: NKE) will join the index.

This is the first "three for three" change to the Index since April 8, 2004.

The changes will be effective with the opening of trading on Monday, September 23.

The index changes were prompted by the low stock price of the three companies slated for removal and the Index Committee's desire to diversify the sector and industry group representation of the Index.

The changes won't cause any disruption in the level of the Index. The divisor used to calculate the DJIA from its component's prices on their respective home exchanges will be changed prior to the opening on September 23. This procedure prevents any distortion in the DJIA’s reflection of the U.S. stock market.

Dow representatives said in an CNBC interview that they looked at Google (NASDAQ: GOOG) and Apple (NASDAQ: AAPL) for addition to the index, but "the math doesn't make sense". They would have to split their stocks multiple times to be considered for addition.


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