Tuesday, June 2, 2009

GM Dropped from the DJIA

Few of us ever thought we would see the day when GM would no long be included in the Dow Jones Industrial Average. On June 8 two new components will be added to the DJIA: The Travelers Companies Inc. (TRV) instead of Citigroup Inc. (C), and Cisco Systems Inc. (CSCO) instead of General Motors Corp. See the WSJ, Here's Why We Changed The Dow.

The DJIA includes 30 large capitalized stocks selected by the editors of the Wall Street Journal. The prices of the 30 stocks are added and then divided by the Dow divisor. The divisor is continually modified to account for stock splits. The DJIA is one of more than 13,000 market indicators published by Dow Jones. You can find information on all of the indexes at the DJIndexes.com.

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