“The Dow Jones Industrial Average announced a major shakeup on Monday after the market closed — it booted Pfizer, Raytheon Technologies and ExxonMobil, the oldest member of the index, having joined in 1928.
What happened: Salesforce, Amgen and Honeywell will replace those companies to “help diversify the index … and adding new types of businesses that better reflect the American economy,” S&P Dow Jones Indices said in a note announcing the changes.
The new companies join the Dow on Aug. 31. GE, the last original member of the Dow, was removed two years ago Driving the news: The changes seem more reflective of a desire for better-performing stocks than more accurate representation of a changing U.S. economy — the Dow will actually have a lower percentage of tech after the additions.
Because the Dow is a stock-price-weighed index, Apple’s four-to-one stock split would have reduced the Dow’s weighting of tech stocks from 27.6% to 20.3%. “By adding Salesforce, you can come back to 23.1% of the Dow being in technology,” Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, told CNBC.”
This is the technical analysis for Dow Jones Industrial Average today, before the open of the US stock market. The key levels to monitor for support and resistance, technical indicators. On Friday, June 12, 2020, Dow Jones Industrial Average closed at 25605.54, -5.55% for the week, -10.28% Year-to-date.
For the week ending on June 12, 2020, the Dow Jones Industrial Average index had a weekly performance of -5.55%. On Friday, June 12, 2020, the Dow Jones Industrial Average index closed at 25,605.54,+477.37(+1.90%).
Dow Jones Industrial Average (^DJI) today closed at 21,413.44+469.93 (+2.24%). The Day’s Range was 20,735.02 – 21,477.77.
The fact that Dow Jones today closed higher and the stock market ignored or had discounted the negative number for the US weekly jobless claims can be considered positive, although we believe it is not prudent to mention yet that a stock bottom has been made. Corporate profitability will be released later this month. Tomorrow the stock market will focus on the non-farm payrolls and the unemployment rate. These numbers can move stocks.
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