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They made household names but that's not enough to keep them on the coveted Dow Jones Industrial Average effective September 23 decent Nike and investment bank Goldman Sachs.
We'll replace Hewlett-Packard Bank of America and aluminum producer Alcoa the largest shake up for the index since 2004.
The move which will raise the average prices index significantly.
Also marks the end about the -- 54 year run.
As the first name in the so called -- there.
Today's announcement reflects each company's sliding -- -- share price according to S&P Dow Jones indices managing director and chairman of the index committee David Blitzer.
We are removing the three lowest priced stocks currently on the -- that'll make the Dow better index a better measure of what's going on in the market.
The move may be a blessing in disguise for those stocks on their way out on average stocks deleted from the index often outperform those added.
Take Bank of America for example since the bank was added to the Dow in 2008 its stock is produced in -- annual return of 16%.
Now compare that -- two stocks booted from the Dow on the -- Bank of America was added.
Honeywell in Austria with both returning -- -- ten.
And 14% respectively and keep in mind when the Dow added tech heavyweights Microsoft and Intel in 1999 the tech sector took a -- a year later so could the same holds true for financials -- Isa and Goldman Sachs coming into the full.
For more light on foxbusiness.com.
In New York -- -- maintenance.
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