NEW YORK, Aug. 24, 2020 /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the Dow Jones Industrial Average (DJIA) effective prior to the opening of trading on Monday, August 31:
Salesforce.com /zigman2/quotes/200515854/composite CRM +0.38% will replace Exxon Mobil Corp. /zigman2/quotes/204455864/composite XOM +0.84% , Amgen Inc. (nasd:AMGN) will replace Pfizer Inc. /zigman2/quotes/202877789/composite PFE -0.82% , and Honeywell International Inc. /zigman2/quotes/205583690/composite HON +0.97% will replace Raytheon Technologies Corp. /zigman2/quotes/203237915/composite RTX -0.36% .
The index changes were prompted by DJIA constituent Apple Inc.'s (nasd:AAPL) 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.
Salesforce.com, headquartered in San Francisco, CA, develops enterprise cloud computing solutions with a focus on customer relationship management.
Amgen, headquartered in Thousand Oaks, CA, is a biotechnology company that discovers, develops, manufactures, and delivers human therapeutics.
Honeywell International, headquartered in Charlotte, NC, delivers industry specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials.
The changes won't disrupt the level of the index. The divisor used to calculate the index from the components' prices on their respective home exchanges will be changed prior to the opening on August 31, 2020. This procedure prevents any distortion in the index's reflection of the portion of the U.S. stock market it is designed to measure. The new divisors can be found in the end-of-day index level files (*.SDL) via the S&P Dow Jones Indices FTP (EDX) site beginning on Friday, August 28, 2020.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
|Effective Date||Index Name||Action||Company Name||Ticker||GICS Sector|
|August 31, 2020||DJIA||Addition||Salesforce.com||CRM||Information Technology|
For more information about S&P Dow Jones Indices, please visit www.spdji.com
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S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
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