Tuesday, September 10, 2013

 

Dow Jones drops Bank of America, HP, Alcoa

Dow Jones is removing America’s second largest bank, printer manufacturer Hewlett Packard, and aluminum producer Alcoa from its 30-stock index, marking a shift in US markets. 


The companies will be replaced by Nike, Visa, and Goldman Sachs.

Dow Jones & Company

Under-performers will be dropped from the New York Exchange's benchmark Dow 30 in the index's first switch-up in a year.

Changes will come into effect at the close of trading on September 20. The reshuffle was "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," S&P Dow Jones Indices said in a statement.

Bank of America, which has been the center of multiple investor fraud investigations, saw its stock drop near $14.00 per share, compared to pre-crisis value of $50.00.

Alcoa has been part of the Industrial Average for over 54 years, but a world-wide decline in metals prices has hit the company hard. The stock closed at $8.08 Monday, with dividends shrinking 29.31 percent over the last five years. Nike, the athletic goods supplier, will replace Alcoa.

Though it has posted a strong performance in 2013 –up more than 57 percent- Hewlett-Packard will be replaced.

August marked S&P’s worst month since May 2012, however the S&P Dow Jones said the shake up won’t affect the performance of the index, which is up 15% overall.

Goldman Sachs' shares climbed 3.16 percent, Visa added 1.79 percent, and Nike rose 1.70 percent as of 10:00am in New York.


Alcoa's shares dropped 0.12 percent, HP is down 0.85 percent, while Bank of America is up 1.1 percent.

The blue-chip index is price-weighted, and the performance is based on a company's stock price, and not market capitalization. Stocks are selected by editors of the Wall Street Journal, which is owned by New Corp, which owns stakes in the indices.

Stocks are chosen for the average by a committee that includes editors of the Wall Street Journal,

Alcoa
Aluminum company
Alcoa Inc. is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal, with corporate headquarters in New York City. Wikipedia
Headquarters: New York City, NY
Founded: 1886, Pittsburgh, PA
Founders: Andrew W. Mellon, Alfred E. Hunt, Charles Martin Hall, Arthur Vining Davis


The Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, United States. Wikipedia
Stock price: HPQ (NYSE)$22.27-0.09 (-0.40%)
Sep 10, 4:00 PM EDT - Disclaimer
Headquarters: Palo Alto, CA
Founded: January 1, 1939, Palo Alto, CA
Founders: David Packard, William Redington Hewlett

Date
Labels: , , , ,
Tags : , , , ,

Share

Social

The idea behind the text.
Respect for the truth is almost the basis of all morality.
Nothing can come from nothing.



Popular Topics

Read

Well, the way they make shows is, they make one show. That show's called a pilot. Then they show that show to the people who make shows, and on the strength of that one show they decide if they're going to make more shows.

Like you, I used to think the world was this great place where everybody lived by the same standards I did, then some kid with a nail showed me I was living in his world, a world where chaos rules not order, a world where righteousness is not rewarded. That's Cesar's world, and if you're not willing to play by his rules, then you're gonna have to pay the price.

You think water moves fast? You should see ice. It moves like it has a mind. Like it knows it killed the world once and got a taste for murder. After the avalanche, it took us a week to climb out. Now, I don't know exactly when we turned on each other, but I know that seven of us survived the slide... and only five made it out. Now we took an oath, that I'm breaking now. We said we'd say it was the snow that killed the other two, but it wasn't. Nature is lethal but it doesn't hold a candle to man.

You see? It's curious. Ted did figure it out - time travel. And when we get back, we gonna tell everyone. How it's possible, how it's done, what the dangers are. But then why fifty years in the future when the spacecraft encounters a black hole does the computer call it an 'unknown entry event'? Why don't they know? If they don't know, that means we never told anyone. And if we never told anyone it means we never made it back. Hence we die down here. Just as a matter of deductive logic.