DOW TRADES NAMES ON BLUE CHIPS : WHO'S WHO IN THE DOW.Byline: Eric R. Quinones Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. The landlord of Wall Street's best-known symbol is evicting four longtime tenants. In a historic shake-up to diversify the 30-company Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. , Westinghouse Electric Corp., Texaco Inc., Bethlehem Steel The Bethlehem Steel Corporation (1857–2003), based in Bethlehem, Pennsylvania, once was the second largest steel producer in the United States (after Pittsburgh, Pennsylvania-based US Steel). Corp. and Woolworth Corp. are out. Dow Jones & Co. said Wednesday that they will be replaced Monday with Travelers Group Inc., Hewlett-Packard Co., Johnson & Johnson and Wal-Mart Stores Inc. To make sure that the new list's performance will be comparable to previous years, Dow Jones said it will slightly adjust the formula used to calculate the average. The last changes to the Dow industrials were made in May 1991, when Caterpillar Inc., Walt Disney Co. and J.P. Morgan were substituted for Navistar International Corp., USX USX US Steel (Corporation) USX Static Mesh Package (Unreal game file type) USX US Cents (Currency) Corp. and Primerica Corp. The latest shuffle leaves the measure - born 100 years ago when economic power was measured by heavy industry's might - without a steelmaker and with a greater focus on technology, health care and financial services. ``We've always thought of `industrials' as meaning more than manufacturing,'' said Paul E. Steiger, managing editor of The Wall Street Journal, which chooses the companies and is published by Dow Jones. Changes are being made in the Dow Jones average Dow Jones Average, indicators used to measure and report value changes in representative stock groupings on the New York stock exchange. There are four different averages—industrial stocks, transportation stocks, utility stocks, and a composite average of all of 30 industrial stocks. The changes take effect Monday. IN Travelers Group Hewlett-Packard Johnson & Johnson Wal-Mart Stores OUT Westinghouse Electric Texaco Bethlehem Steel Woolworth STAYING AT&T AlliedSignal Aluminum Co. of America American Express Boeing Caterpillar Coca-Cola Walt Disney Chevron Dupont Eastman Kodak Exxon General Electric General Motors Goodyear Tire & Rubber International Business Machines International Paper McDonald's Corp. Merck & Co. Minnesota Mining & Manufacturing J.P. Morgan Philip Morris Procter & Gamble Sears Roebuck Union Carbide United Technologies The Dow is a price-weighted average price-weighted average A security average that is weighted by the market price of each security included in the average. Thus, securities that have high market prices tend to be more heavily weighted and to have more influence on changes in a price-weighted of blue chip stocks Blue chip stocks Common stock of well-known companies with a history of growth and dividend payments. of companies that have a long record of profit growth and dividend payment. The average is calculated by adding the closing prices of the component stocks and using a divisor divisor - A quantity that evenly divides another quantity. Unless otherwise stated, use of this term implies that the quantities involved are integers. (For non-integers, the more general term factor may be more appropriate.) Example: 3 is a divisor of 15. adjusted for various factors. Associated Press CAPTION(S): Box Box: WHO'S WHO IN THE DOW (See text) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion