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The Dow Jones Industrial Average (DJIA) recently removed ExxonMobil, Pfizer, and Raytheon Technologies, replacing them with Salesforce.com, Amgen, and Honeywell International. This update follows Apple’s four-to-one stock split, reducing its weight in the price-weighted Dow. UnitedHealth Group, Home Depot, and Amgen will now be the top three weighted stocks.
Established in 1896, the Dow includes 30 major U.S. companies and is a key market indicator. Unlike indices like the S&P 500, the Dow is more volatile due to its price-weighted nature.
These changes reflect market adjustments rather than investment recommendations. With ExxonMobil's removal, Chevron remains the only energy sector representative. Amgen and Honeywell aim to boost healthcare and industrial diversification.
Investors might reconsider the Dow's relevance as a market barometer, given its limited and price-weighted company representation. Some experts argue it may no longer fully reflect the entire economy.
