© Reuters Amazon to replace Walgreens Boots Alliance at Dow
Amazon (NASDAQ:) has been selected to replace Walgreens Boots Alliance (NASDAQ:) in the (DJIA), S&P Dow Jones Indices announced late Tuesday.
The measure comes into effect before the opening of operations on Monday, February 26.
This adjustment is a response to dynamic changes in the U.S. economy and is intended to improve the exposure of the retail consumer and other business sectors within the DJIA. The decision to make this change was influenced by Walmart Inc. (NYSE:), a component of the DJIA, which opted for a 3:1 stock split. This stock split will result in a reduced index weighting for Walmart, given the index's price-weighted construction, but Walmart will remain part of the DJIA.
Furthermore, it was announced that Uber Technologies Inc. . (NYSE:) will take the place of JetBlue Airways Corp. (NASDAQ:) in the average. This adjustment is designed to provide the index with exposure to the ridesharing industry. The decision to make this change was driven by JetBlue's minimal impact on the index, with a weight of less than half a percentage point, attributed to its low share price. The Dow Jones Transportation Average operates as a price-weighted index, where the influence of very low-priced stocks is negligible on the overall index.
