stock markets

Reshuffling the Dow: Exxon out, Salesforce in

Agence France-Presse, Agence France-Presse
Reshuffling the Dow: Exxon out, Salesforce in

NEW YORK, NEW YORK - JULY 23: American flags are on display at the New York Stock Exchange in New York City on July 23, 2020. On Wednesday July 22, the market had its best day in 6 weeks. Michael M. Santiago/Getty Images/AFP

Global oil giant Exxon Mobil Corporation will be removed from the Dow to make room for cloud computing firm Salesforce

The world’s most closely watched stock index will get a slightly new look at the end of August, as Exxon Mobil Corporation is bumped out of the blue chip Dow Jones Industrial Average, the index’s parent company announced on Monday, August 24.

The global oil giant will be removed to make room for cloud computing firm Salesforce.com, S&P Dow Jones Indices said in a statement.

It is a historic change for the index, as Exxon has formed part of the Dow since October 1928, although for years it was listed as Standard Oil of New Jersey.

In addition, biotech company Amgen will replace pharmaceutical giant Pfizer, and industrial systems manufacturer Honeywell takes the spot held by defense contractor Raytheon Technologies.

The change is driven in part by Apple’s planned four-to-one stock split, which reduces the Dow’s weight globally, S&P Dow Jones said.

But the changes also will “help diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy.”

The new index will debut August 31. – Rappler.com