Daily News: September 11, 2013

Dow Drops BofA; Adds Goldman Sachs

S&P Dow Jones Indices said Goldman Sachs will replace Bank of America, Visa will replace Hewlett-Packard and Nike will replace Alcoa in the Dow Jones Industrial Average after the close of trading on Friday, September 20.

The changes will be effective with the opening of trading on Monday, September 23. The index changes were prompted by the low stock price of the three companies slated for removal and the Index Committee’s desire to diversify the sector and industry group representation of the Index, according to the news release.

The changes won’t cause any disruption in the level of the Index. The divisor used to calculate the DJIA from its components’ prices on their respective home exchanges will be changed prior to the opening on September 23. This procedure prevents any distortion in the DJIA’s reflection of the U.S. stock market, the news release said.