The following is an excerpt from Canaccord Genuity’s Morning Coffee newsletter.
Three U.S. companies are losing their spot among blue-chip stocks.
Aluminum giant
Alcoa Inc. (
NYSE: AA,
Stock Forum),
Hewlett Packard Co. (
NYSE: HPQ,
Stock Forum) and
Bank of America Corp. (
NYSE: BAC,
Stock Forum) will no longer be included among the 30 companies that make up the Dow Jones industrial average.
Taking their places will be two financial firms,
The Goldman Sachs Group Inc. (
NYSE: GS,
Stock Forum) and
Visa (
NYSE: V,
Stock Forum) and apparel company,
Nike (
NYSE: NKE,
Stock Forum).
Reasons for the change include the low stock prices of the outgoing companies, and to diversify the commonly used stock market gauge, S&P Dow Jones announced Tuesday.
The changes, set to go into effect September 23, amount to the biggest shake-up for the Dow in nearly a decade.
Last year, only one company lost its spot, when
United Health Group Inc. (
NYSE: UNH,
Stock Forum) replaced
Kraft Foods Group Inc. (
NASDAQ: KRFT,
Stock Forum).