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GE Loses Place in Dow Industrial Average

June 20, 2018
Pharmacy giant Wallgreens Boots Alliance will take GE's place in the index.

Global pharmacy giant Walgreens Boots Alliance will take the place of General Electric in the Dow Jones Industrial Average (DJIA) effective before trading opens next Tuesday, June 26.

GE is the last of the companies that made up the original DJIA in 1896 to be dropped from the index. At GE's low price in a price-weighted index it made up less than half a percentage point of impact.

“General Electric was an original member of the DJIA in 1896 and a member continuously since 1907,” said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, in an S&P Dow Jones press release. “Since then the U.S. economy has changed: consumer, finance, health care and technology companies are more prominent today and the relative importance of industrial companies is less. Walgreens is a national retail drug store chain offering prescription and non-prescription drugs, related health services and general goods. With its addition, the DJIA will be more representative of the consumer and health care sectors of the U.S. economy.”