Last night's shake-up of
the Dow Jones Industrial Average reverberated across markets today. New entrant
Salesforce was up 3.6%. (It's up another 13% in after
hours trading tonight after the cloud software company reported a blowout earnings report.) The other Dow
additions, Honeywell and Amgen rose 3.2% and 5.4%, respectively.
Not surprisingly, coming out
of the Dow has the opposite effect. Exxon
Mobil shares
fell 3.2%, while Pfizer and Raytheon
Technologies each fell around
1%.
The Exxon deletion feels
particularly significant. It was the longest tenured member of the Dow, dating
back to 1928, when it was known as Standard Oil Co. of New Jersey.
My colleague Avi
Salzman reached
out to Exxon executives to get their reaction to being pulled from the world's
most famous index. Here's what they said:
“This action does not affect
our business nor the long-term fundamentals that support our strategy,” an
Exxon spokesperson wrote. “Our portfolio is the strongest it has been in more
than two decades, and our focus remains on creating shareholder value by
responsibly meeting the world’s energy needs.”
Maybe so. But come Monday,
the company will no longer be in the Dow.
Here's more from Avi on Exxon and the Dow.
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