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Citigroup (C) and GM (GM) Out of The Global Dow, Is Dow 30 Next?

March 29, 2009 10:03 PM EDT
Citigroup (NYSE: C) and General Motors (NYSE: GM) were removed from The Global Dow, a relatively new index from Dow Jones Indexes, the same group that puts together the much-more imporant Dow Jones Industrial Average, or Dow 30. Both Citigroup and GM are also in the Dow 30 and it has been speculated for months that they will be removed soon. Could the Global Dow news prelude an announcement to remove the two from the Dow 30?

The Global Dow measures the performance of 150 stocks of companies that are established global leaders as well as those poised for future global leadership.

Besides Citigroup and GM, a number of other changes were also announced:

Other Deletions: AXA S.A. (NYSE: AXA), Cemex (NYSE: CX), Deutsche Post AG, Gamesa Corporacion Tecnologica S.A., ING Groep N.V. (NYSE: ING), National Bank of Greece S.A. and Royal Bank of Scotland Group PLC (NYSE: RBS) were also removed.

Additions: Amen Inc. (Nasdaq: AMGN), Anheuser-Busch inbox N.V., Bridgestone Corp., Canon Inc., CLP Holdings Ltd., Esprit Holdings Ltd., Medco Health Solutions Inc. (NYSE: MHS), NASDAQ OMX Group Inc. (Nasdaq: NDAQ), and Travelers Cos. Inc. (NYSE: TRV).

Commenting on the changes, John A. Prestbo, editor and executive director, Dow Jones Indexes said, "These changes in The Global Dow are off-schedule, but we felt they were necessary because of the extraordinary market conditions worldwide since the index was launched last November 11." The group will conduct the regular annual review of The Global Dow's components in September.

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