© Reuters Amazon to replace Walgreens Boots Alliance in Dow
Amazon (NASDAQ:) has been selected to replace Walgreens Boots Alliance (NASDAQ:) in the (DJIA), S&P Dow Jones Indices announced Tuesday evening.
The move is effective before the open of trading on Monday, February 26.
This adjustment is in response to the dynamic shifts in the American economy and aims to enhance consumer retail exposure and other business sectors within the DJIA. The decision to make this change was influenced by Walmart Inc. (NYSE:), a constituent of the DJIA, opting for a 3:1 stock split. This stock split will result in a reduced index weight for Walmart, given the price-weighted construction of the index, but Walmart will continue to be part of the DJIA.
Further, it was announced that Uber Technologies Inc . (NYSE:) is set to take the place of JetBlue Airways Corp. (NASDAQ:) in the Average. This adjustment is designed to provide the index with exposure to the ride-sharing industry. The decision to make this change was driven by JetBlue’s minimal impact on the index, with a weight of less than one-half of one 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.
