In a sign of its enormous role in both the U.S. and world economies, Amazon will join the exclusive “club” of 30 companies that make up the Dow Jones Industrial Average (DJIA), replacing Walgreens Boots Alliance. Additionally, Uber has been added to the Dow Jones Transportation Average, driving out JetBlue Airways. Both changes will be effective prior to the opening of trading on Feb. 26, 2024.
The Amazon addition “will increase consumer retail exposure as well as other business areas in the DJIA,” according to a statement from S&P Dow Jones Indices. The change was prompted by DJIA member Walmart’s decision to split its stock 3:1, which will reduce Walmart’s index weight due to its price weighted construction. Walmart will remain in the DJIA.
Uber’s ascension allows the Transportation Index to “gain exposure to the ride sharing industry,” according to the statement. JetBlue lost its place due to a low weight in the index — less than 0.5% — caused by its low share price.
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