Imagine xom still in there....you would see the dow above 40k!!!
What would be the weighing on dow points for such a gain on xom the last 5 years??
Amazon to replace Walgreens in Dow Industrial Average next week
- Thread starter SunTrader
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Imagine xom still in there....you would see the dow above 40k!!!
What would be the weighing on dow points for such a gain on xom the last 5 years??
(Axios)
Bonus: How Walmart ushered Amazon into the Dow
Illustration: Sarah Grillo/Axios
Actions have consequences — and a slightly weird stock split from Walmart turns out to have finally been the event that caused Amazon to enter the Dow Jones Industrial Average, Felix writes.
Why it matters: Two separate stock splits were necessary for Amazon to enter the Dow. Its inclusion now means a bit more representation for mega-caps, although Nvidia, Alphabet, Meta and Berkshire Hathaway are all still missing.
How it works: Stocks in the Dow are weighted by their nominal share price, not their market value.
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Bonus: How Walmart ushered Amazon into the Dow
Illustration: Sarah Grillo/Axios
Actions have consequences — and a slightly weird stock split from Walmart turns out to have finally been the event that caused Amazon to enter the Dow Jones Industrial Average, Felix writes.
Why it matters: Two separate stock splits were necessary for Amazon to enter the Dow. Its inclusion now means a bit more representation for mega-caps, although Nvidia, Alphabet, Meta and Berkshire Hathaway are all still missing.
How it works: Stocks in the Dow are weighted by their nominal share price, not their market value.
- When Walmart did its 3-for-1 stock split, I worried that the action didn't "seem to make a lot of sense — especially given that the split is going to significantly dilute Walmart's contribution to the Dow Jones Industrial Average."
- Turns out, S&P Dow Jones Indices, which administers the Dow, had the same worry. To maintain a sensible level of consumer retail in the average, they needed another stock alongside Walmart.
- Helpfully, Amazon had done its own stock split back in 2022. Before then, its shares were trading at almost $3,000 each, effectively making the company ineligible for the Dow. Now, however, Amazon shares are trading at about $175 apiece, which is well within the Dow range. (UnitedHealth Group, also in the Dow, trades for more than $500 per share.)
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