Visa is considered to be a technology company focused on payment networks, a corner of technology not represented before. Meanwhile, adding Goldman Sachs boosts the Dow's weighting in investment banking. Bank of America is a closer peer to another Dow member, JPMorgan Chase.The additions and deletions will mean that a $1 price gain in any one component will equal a 6.5 point change in the Dow, vs. 7.7 points in the old Dow, according to Bespoke Investment Group.The Dow was created by Charles Dow in 1896 and originally had 11 stocks. General Electric,China Crew Visa application form added in 1928, is the oldest current Dow component.
Changes to the Dow are relatively rare. The last time any additions or removals were made occurred on June 8, 2009, when computer networking-equipment maker Cisco Systems replaced financial firm Citigroup.All told, there were eight additions and eight deletion made to the Dow between 1999 and 2009. The newest stocks: insurer American International Group; drugmaker Pfizer; telecom Verizon; the just-ousted Bank of America; energy company Chevron; food company Kraft; insurer Travelers; and Cisco.
Stocks removed during that time: International Paper; General Motors; AT&T; Allied Chemical & Dye; photo firm Eastman Kodak; food company Altria; Citigroup; and American International. AIG was added in April 2004 and removed in September 2008.Investors might wonder about how earnings season might be affected by the change. Alcoa's earnings report often marks the unofficial start of earnings season,China Business Visa application form in part, because it was a Dow component. "The composition of the Dow Jones Industrial Average has no impact on Alcoa's ability to successfully execute our strategy, and we remain focused on delivering shareholder value," the company said in a statement.
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