Three new companies will join the Dow Jones Industrial Average next week and three others will leave as part of a shake-up led by Apple's decision to split its stock.
The moves were necessary after Apple's 4:1 stock split reduced the index's weight in the information technology sector. The switch was also done to "help diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy," S&P Dow Jones said Monday.
Honeywell is the only of three that has been part of the Dow before. It was part of the blue chip index between 1925 and 2009.
Exxon will leave the index for the first time since 1928, when it was Standard Oil of
"Basically Apple -- by itself -- took the technology [weighting] within the Dow down from 27.6% to 20.3%. It's a significant decline,"
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