Amazon and Uber are to join the Dow Jones Industrial Average (DJIA) and Dow Jones Transportation Average (DJTA), respectively.
Amazon.com will replace Walgreens Boots Alliance in the Dow Jones Industrial Average.
Reflecting the evolving nature of the American economy, this change will increase consumer retail exposure as well as other business areas in the DJIA.
The index change was prompted by DJIA constituent Walmart’s decision to split its stock 3:1, which will reduce Walmart’s index weight due to the price weighted construction of the index. Walmart will remain in the DJIA.
Uber Technologies will replace JetBlue Airways in the Dow Jones Transportation Average.
This change will help the index gain exposure to the ride sharing industry. The index change was prompted by JetBlue’s low weight in the index of less than one-half of one percentage point caused by its low share price.
The Dow Jones Transportation Average is a price weighted index, and thus very low-priced stocks have an immaterial impact on the index.