Amazon.com Inc (NASDAQ:AMZN, ETR:AMZ) is set to replace Walgreens Boots Alliance in the Dow Jones Industrial Average (DJIA) index.
This reflects “the evolving nature of the American economy”, said Standard & Poors, the custodian of the 128-year-old index.
Effective Monday 26 February, the swap will “increase retail business exposure as well as other business areas” in the benchmark, and was promoted by Walmart’s decision to conduct a 3:1 split on its stock price.
The DJIA is a price-weighted stock market index that measures the stock performance of 30 large companies traded on the New York Stock Exchange (NYSE) and NASDAQ.
Since the DJIA is price weighted rather than market capitalization weighted, Walmart’s stock split reduced the retail giant’s exposure index weighting, and therefore the retail sector as a whole.
Walmart will still be present in the DJIA’s basket of stocks.
S&P also announced that Uber Technologies Inc (NYSE:UBER, ETR:UT8) will replace JetBlue Airways (NASDAQ:JBLU) in the Dow Jones Transportation Average.
“This change will help the index gain exposure to the ride-sharing industry,” said S&P.