© Reuters Amazon will replace Walgreens Boots Alliance in Dow
Amazon (NASDAQ:) was chosen to replace Walgreens Boots Alliance (NASDAQ:) in the S&P Dow Jones indexes announced Tuesday evening (DJIA).
The move is effective before the opening of trading on Monday 26 February.
This adjustment is in response to dynamic changes in the US economy and aims to enhance exposure to consumer retail and other business sectors within the DJIA. The decision to make this change was influenced by Walmart Inc. (NYSE:), a component of the DJIA, which opted for a 3-for-1 stock split. This stock split will result in a reduced index weight for Walmart, given the price-weighted construction of the index, but Walmart will continue to be part of the DJIA.
Furthermore, it was announced Uber Technologies Inc . (NYSE:) is set to take over from JetBlue Airways Corp. (NASDAQ:) in the average. This adjustment is designed to provide the index with exposure to the ride-sharing sector. The decision to make this change was driven by JetBlue’s minimal impact on the index, with a weight of less than half a percentage point, attributed to its low stock price. The Dow Jones Transportation Average functions as a price-weighted index, where the influence of very low-priced stocks is negligible on the overall index.