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Dow replaces 4 components
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March 12, 1997: 9:01 p.m. ET
Lineup of Dow Jones industrials shuffled for first time in six years
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NEW YORK (CNNfn) - A changing of the guard will take place on the Dow Jones industrial average Monday when four new companies join the world's most famous stock index.
Dow Jones & Co. is dropping four stocks from the index and adding four others to increase representation of the technology, finance and health care sectors.
Joining the Dow will be Travelers Group Inc., Hewlett-Packard Co., Johnson & Johnson and Wal-Mart Stores Inc.
They will replace Westinghouse Electric Corp., Texaco Inc., Bethlehem Steel Corp. and Woolworth Corp.
Westinghouse, Bethlehem and Woolworth were original Dow components.
Notably absent from the list of new inclusions were Intel Corp. and Microsoft Corp., which are both traded on the Nasdaq stock market. All 30 issues on the Dow remain New York Stock Exchange issues.
Changes in the index are decided by editors of The Wall Street Journal, published by Dow Jones & Co.
William LeFevre, senior market analyst at Ehrenkrantz King Nussbaum, said the changes reflected the country's different economy. (246K WAV) or (246K AIFF)
The components of the Dow 30 were last changed in 1991 when Caterpillar Inc., Walt Disney Co. and J.P. Morgan & Co. were substituted for Navistar International Corp., USX Corp. and Primerica Corp., which later became Travelers Group.
The changes will cause the divisor used to calculate the Dow Jones industrial average to rise slightly. The new level will be determined at the close of trading Friday. The change will also require altering the method for computing related composites, including the transportation and utilities averages.
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