In a historic reorganization of some of the Dow Jones “Industrial” Average’s key consitutents, moments ago S&P Dow Jones Indices announced that energy giant, and the world’s largest company as recently as 2014, Exxon Mobil will be kicked out of the benchmark index, and will be replaced by Salesforce.com, additionally Amgen will replace Pfizer, and Honeywell International will replace Raytheon Technologies.
According to the announcement, the index changes were prompted by something as trivial DJIA constituent Apple’s decision to split its stock 4:1, which will reduce the index’s weight in the Global Industry Classification Standard (GICS) Information Technology sector. “The announced changes help offset that reduction. They also help diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy.”
In other news, billions of capital were created and destroyed for now other reason than i) the AAPL’s stock split and ii) because the Dow is a price-weighted index.