Walgreens Boots Alliance: to join Dow Jones next week

(CercleFinance.com) - Drugstore chain Walgreens Boots Alliance will join the blue chip Dow Jones Industrial Average, the index committee said on Tuesday, replacing General Electric which has featured in the index since 1896.


The changes will be effective as from the opening of trading on Tuesday 26 June, S&P Dow Jones Indices said in a statement late yesterday.

With this change, the DJIA will be more representative of the US economy, with consumer, finance, health care and technology
companies now are more prominent and industrial companies less so, the committee said.

Also, Walgreens Boots Alliance's share price is higher, and it will make a more meaningful contribution to the index, the S&P Dow Jones Indices said.

With GE's share price having fallen by over 25% since the beginning of the year, its market cap now stands at 112.5 billion dollars.

In comparison, the market caps of groups such as Alphabet or Amazon currently exceed 800 billion dollars.

The Dow Jones Industrial Average index contains 30 shares.

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