Dow Jones Index Overhaul Reflects Shift to Technology

In a significant move, Dow Jones & Co. has decided to add Microsoft, Intel, SBC Communications, and Home Depot to the Dow industrials, while dropping four old-line components. This change reflects the growing influence of technology on corporate America and the global economy. Analysts see this as a step in bringing the index in line with the new economy, making it more representative of the evolving U.S. economy.

Key Takeaways:

• The Dow Jones industrials have added four new components: Microsoft, Intel, SBC Communications, and Home Depot, while dropping four old-line components: Sears, Roebuck & Co., Chevron Corp., Goodyear Tire & Rubber Co., and Union Carbide Corp.
• The addition of Microsoft and Intel marks the first time stocks not listed on the New York Stock Exchange (NYSE) have joined the Dow since its inception in 1896.
• The move reflects the growing influence of technology on corporate America and the global economy, according to analysts.
• The new Dow will include four technology components: Microsoft, Intel, IBM Corp., and Hewlett-Packard Corp.
• SBC Communications is the country's biggest local phone company and the largest provider of Internet access.
• Home Depot is the nation's leading chain of home improvement stores.

Statistics:

• 4 new components added to the Dow industrials: Microsoft, Intel, SBC Communications, and Home Depot
• 4 old-line components dropped from the Dow industrials: Sears, Roebuck & Co., Chevron Corp., Goodyear Tire & Rubber Co., and Union Carbide Corp.
• 103 years - the age of the Dow Jones company
• 1896 - the year the Dow Jones industrial average was first established
• 1997 - the last time the Dow Jones industrials underwent changes

Sources:

• The Wall Street Journal
• Dow Jones & Co.
• Microsoft Corp.
• Intel Corp.
• SBC Communications Inc.
• Home Depot Inc.
• Newsday
• The Associated Press