11 Sep 2013

Major shakeup for Dow Jones

1:00 pm on 11 September 2013

The Dow Jones index has had its biggest shakeup in a decade, with some big names not making the cut.

The famous names to have lost their blue chip status are Alcoa, Hewlett-Packard and Bank of America.

Goldman Sachs, Nike and Visa are being added to the index.

The index owner periodically changes its membership to reflect both the evolution of US industry and the health of member companies.

It says the main reason for dropping the three was that their share prices had languished at too-low levels for too long and were weighing down the overall index, the BBC reports.

The Dow Jones Industrial Average is made up of 30 top United States companies and has been one of the leading measures of the health of US stocks, and something of a proxy indicator for the US economy, since it was created in 1896.