Amazon to replace Walgreens in Dow Jones Industrial Average

AMAZON is about to hitch the Dow Jones Industrial Average, changing Walgreens Boots Alliance efficient subsequent week, S&P Dow Jones Indices mentioned on Tuesday.

Shares of Amazon rose 1.3 per cent in prolonged commerce after the announcement, whereas Walgreens dipped 3 per cent.

Adding Amazon will enhance client retail publicity in addition to different areas within the Dow, and the transfer was prompted by Walmart’s choice to separate its inventory, S&P Dow Jones Indices mentioned in a information launch.

The Dow, which debuted in 1896, is extensively adopted by retail traders, making it an essential reflection of the US inventory market. Institutional traders extra ceaselessly benchmark their efficiency towards the S&P 500.

As effectively as dominating on-line retail, the Seattle firm is a serious participant in cloud computing, leisure and different industries.

“Amazon is almost a hybrid name. It’s one of the names that falls into different categories. It in many ways exemplifies what the Dow stands for in terms of representing commerce across the United States,” mentioned Quincy Krosby, chief international strategist at LPL Financial in Charlotte, North Carolina.

The change takes impact on the open of buying and selling on Monday.

Walmart will stay a part of the Dow, though its upcoming three-for-one inventory cut up, efficient after market shut on Friday, will scale back that retailer’s weight within the index.

The Dow is weighted primarily based on the share costs of its parts, not on every firm’s general market worth.

Additionally, Uber Technologies will be part of the Dow Jones Transportation Average, changing JetBlue Airways Corp, giving that index publicity to the ride-hailing trade, S&P Dow Jones Indices mentioned.

Amazon’s addition to the Dow is the primary since 2020, when Salesforce, Amgen and Honeywell International changed Exxon Mobil, Pfizer and Raytheon Technologies.

Walgreens joined the Dow in 2018, changing General Electric. REUTERS