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Article: New members of the Dow club. (Wall Street Journal's decision to drop three firms from the Down Jones Industrial Average and add three new ones) (column)
- Article from:
- U.S. News & World Report
- Article date:
- May 27, 1991
- Author:
CopyrightCOPYRIGHT 1991 All rights reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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It's not often that the Wall Street Journal, official keeper of the Dow Jones industrial average, tinkers with what is undoubtedly the world's most publicized and widely followed stock index. So ever since the Journal announced in early May that it was adding three new companies to the list of 30 blue chips that make up the DJIA-and dropping three long-standing members-analysts have been scrutinizing the shifts to see what effect they may have on the future performance of the Dow.
Their initial conclusion: The DJIA will tend to be more volatile, meaning either that new records will be reached more easily or that the Dow could fall faster than before during a ...