Dow Jones Swaps Exxon, Pfizer, and Raytheon for Salesforce, Amgen, and Honeywell
The Dow Jones Industrial Average undergoes a major shake-up as Salesforce, Amgen, and Honeywell replace Exxon Mobil, Pfizer, and Raytheon Technologies. This rare three-stock swap offsets the significant drop in technology weighting caused by Apple's upcoming stock split.
S&P Dow Jones Indices announces a major shake-up for the 30-stock Dow Jones Industrial Average by adding Salesforce, Amgen, and Honeywell International. These three new companies replace Exxon Mobil, Pfizer, and Raytheon Technologies ahead of the market open on Monday, August 31. This simultaneous swap of three components marks an extremely unusual event for the 124-year-old blue-chip benchmark.
The changes directly address Apple's upcoming 4-for-1 stock split, which significantly reduces the index's overall exposure to the information technology sector. Because the Dow is price-weighted, Apple's lower share price drops its ranking from the most heavily-weighted component down to 17th place. Adding Salesforce boosts the technology sector's weighting back up to 23.1% to counterbalance this sudden shift.
Following this rebalancing, UnitedHealth Group takes the top spot as the most heavily weighted stock in the Dow, followed by Home Depot and the newly added Amgen. Analysts expect this massive restructuring to trigger significant trading activity as portfolio managers buy and sell shares to align with the updated index composition.