The Goldman Sachs Group Inc. will replace Bank of America Corp., Visa Inc. will replace Hewlett-Packard Co., and Nike Inc. will replace Alcoa Inc. in the Dow Jones Industrial Average (DJIA) after the close of trading on Sept. 20. The changes will be effective with the opening of trading on Monday, Sept. 23.
The index changes were prompted by the low stock price of the three companies slated for removal and the Index Committee’s desire to diversify the sector and industry group representation of the Index. The Goldman Sachs Group, headquartered in New York, provides investment banking, securities, and investment management services, as well as financial services to corporations, financial institutions, governments, and high-net-worth individuals worldwide.
Visa, headquartered in San Francisco, is a payments technology company that engages in the operation of retail electronic payments network worldwide. Nike, headquartered in Beaverton, Ore., engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories. The changes won’t cause any disruption in the level of the Index. The divisor used to calculate the DJIA from its components’ prices on their respective home exchanges will be changed prior to the opening on Sept. 23. This procedure prevents any distortion in the DJIA’s reflection of the U.S. stock market.