--- title: The Dow index got a makeover. What does it mean? - The Hustle description: The Dow index had its biggest reshuffle in years. With Salesforce in and Exxon out, what does this all mean? image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/994075186-image2.1.webp --- # The Dow index got a makeover. What does it mean? ![Trung T. Phan](https://thehustle.co/wp-content/uploads/2020/04/Image-from-iOS-300x300.jpg?width=48&height=48&name=Image-from-iOS-300x300.jpg) [Trung T. Phan](https://hs-sbup.thehustle.co/author/trung-t-phan) [Trung T. Phan Twitter profile ](https://twitter.com/TrungTPhan) Published: April 11, 2023 Updated: October 11, 2023 The Dow index — which is made up of 30 blue chip US stocks — [is getting a makeover as of Monday](https://www.marketwatch.com/story/why-dows-shake-up-is-bad-for-stocks-added-to-itand-less-bad-for-those-booted-11598379932): ![The Dow index got a makeover. What does it mean?](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/994075186-image2.1.webp?width=595&height=400&name=994075186-image2.1.webp) - **In:** Salesforce, Amgen, Honeywell - **Out:** Exxon, Pfizer, Raytheon As a price-weighted index, the Dow is affected by the size of its constituents’ stock price — and Apple’s recent 4-for-1 stock split reduced the index’s exposure to tech. ##### **The addition of Salesforce boosts the Dow’s tech bonafides** While giving the index a timely opportunity to boot Exxon. In a changing of the energy guard, the oil giant has shed >$100B in the past year while electricity superfan No. 1 Tesla has gained >$300B. ![](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/1722230300-Tesla-vs-Exxon-1024x695.webp?width=636&height=431&name=1722230300-Tesla-vs-Exxon-1024x695.webp) ##### **The 124-year-old index is not an exact mirror for corporate America** While the Dow is the [most cited market measure in the world](https://us.spindices.com/indexology/djia-and-sp-500/at-a-glance-the-dow-vs-the-sp-500), the S&P 500 — which includes, umm, 500 US companies — is the world’s most tracked index (as measured by assets under management). According to the index’s parent firm (S&P Global), “changes to the Dow are intentionally infrequent, with the goal of providing continuity over time.” There have only been ~60 changes over the index’s existence, or about 2 a year. ##### **Additions and subtractions have signified turning points** Here are some [notable changes](https://en.wikipedia.org/wiki/Historical_components_of_the_Dow_Jones_Industrial_Average) over the years: - **June 1979:** Chrysler and Esmark replaced by IBM and Merck - **March 1987:** Inco and Owens-Illinois replaced by Boeing and Coca-Cola - **September 2013:** Alcoa, Bank of America, and HP replaced by Goldman Sachs, Nike, and Visa - **March 2015:** AT&T replaced by Apple (probably a good call) - **June 2018:** GE (which lost nearly $500B in market cap from its 2000 highs) replaced by Walgreens Boot Alliance As with everyone on r/WallStreetBets, we’re patiently waiting for Tesla’s Dow inclusion. 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