Salesforce.com, Amgen & Honeywell Join DJIA
August 25, 2020
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 (NYSE:CRM) will replace Exxon Mobil Corp. (NYSE:XOM),
Amgen Inc. (NASD:AMGN) will replace Pfizer Inc. (NYSE:PFE), and
Honeywell International Inc. (NYSE:HON) will replace Raytheon
Technologies Corp. (NYSE:RTX).
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.
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
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,
Following is a summary of the changes that will take place prior to the
open of trading on the effective date: