Bank of America and Chevron joining Dow industrials
Today morning, the Dow Jones Indexes announced it is adjusting the components of its benchmark Dow Jones Industrial Average. The index group said the following changes would be effective with the opening of trading on Feb. 19:
In :
Bank of America Corp. (BAC)
Chevron Corp. (CVX)
Out:
Altria Group, Inc. (MO)
Honeywell International, Inc. (HON)
Bank of America would be the third bank and fifth financial services firm in the index. It's worth noting the trust that the index is bestowing on the financial sector, despite the recent turmoil originating from subprime mortgage and credit crunch. There were other large cap stocks that have been ignored by the index, such as Cisco, PepsiCo, Apple or Google.
For average investors, a good way to play the index would be to invest in the exchange traded fund, Diamond Trust (DIA).
posted by Quark @ 6:38 AM
2 Comments:
How could they include B of A when they just got suckered into the Countrywide bailout?
Hi Jack,
I absolutely agree with you. B&A should not get in.
I also do not like Honeywell going out, while GM is hanging on! I do not know if Toyota should now be considered a foreign company, but it's high time they find a suitable alternative from car industry.
Also, Google or Apple must be in!
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