We open today with a teeny sign of the times: Directors of the Dow Jones industrial average announced this morning they will change the Dow’s composition for the first time since 2004. Withering corporate giants Altria and Honeywell will be replaced with the swelling Bank of America and Chevron.
“We saw that the financials industry was underrepresented,” said Marcus Brauchli, one of the Dow’s caretakers, “notwithstanding the current turbulence -- and that the oil and gas industry's growing importance to the world economy called for another representative to join Exxon Mobil Corp.”
Altria will be removed because recent and expected spinoffs make it mostly a domestic tobacco manufacturer. Honeywell, despite outperforming the Dow by over 100% over the last five years, will get delisted from the Dow because it is and threatens to remain the smallest component by revenue/earnings of all the companies in the Dow 30.
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