Dow Jones Ousts Exxon Mobil After 92 Years in Major Index Shake-Up
The Dow Jones Industrial Average removes legacy giants Exxon Mobil, Pfizer, and Raytheon, replacing them with Salesforce, Amgen, and Honeywell to offset Apple's upcoming stock split.
The Dow Jones Industrial Average removes energy giant Exxon Mobil, drugmaker Pfizer, and defense contractor Raytheon Technologies from its blue-chip index. Taking their places are enterprise software company Salesforce.com, biotech firm Amgen, and manufacturing conglomerate Honeywell. S&P Dow Jones Indices announces that these changes take effect on August 31.
These adjustments are necessary to counterbalance Apple's upcoming 4-to-1 stock split, which significantly reduces the technology sector's weight in the price-weighted index. The index provider states that the shake-up also helps the Dow better reflect the modern American economy by adding new types of businesses and reducing its historical reliance on the energy sector.
Exxon Mobil's departure marks a historic shift, as the company joins the index in 1928 and stands as its longest-tenured member. Once the most valuable U.S. company, Exxon now holds a market value of $175 billion compared to Apple's $2 trillion, reflecting a broader decline in fossil fuel demand and a shrinking role for oil in the national economy.