For the first time in 110 years, General Electric will not be a member of the elite Dow Jones Industrial Average.
S&P Dow Jones Indices announced on Tuesday that the iconic maker of light bulbs and jet engines will be replaced in the 30-stock index by Walgreens Boots Alliance.
GE (GE) was an original member of the Dow in 1896 and has been in it continuously since November 7, 1907.
An OG member of the Dow… dating all the way back to 1896. That’s right – for the first time since before your grandparents were born, GE (GE) will not be a part of the Dow Jones Industrial Average. Walgreens (WBA) will be the newest member of the 30-stock index. This comes on the heels of a bad year, where GE stock lost nearly 50% of its value. They are down another 25% this year.
Stick to the plan… because getting the boot from the Dow changes nothing, according to a spokeswoman with the company. This plan includes paying down debt by selling long-held businesses, including its light bulb division.
But times are changin’… according to David Blitzer, chairman of the S&P’s index committee. Industrial companies like GE have been taking a backseat to banks, healthcare, tech, and consumer companies. Accordingly, the swap should make the DJIA a better measure of the economy and stock market.