GE removed from DJIA
06-20-2018, 10:14 AM,
Post: #1
GE removed from DJIA
https://www.cnbc.com/2018/06/19/walgreen...e-dow.html

Quote:GE's stock has fallen more than 55 percent over the last 12 months, losing more than 25 percent this year alone. This move will put further pressure on GE shares as some index funds will no longer be required to own the stock.

GE's market capitalization is much larger than that of Walgreens: General Electric's is more than $110 billion, while the drug store chain's is about $64 billion.

"Let's face it, it was weighting the Dow down. And when people use that as a barometer for investment, I'm not surprised that they decided to transition GE out," Nardelli told CNBC's "Fast Money."

So one of the big indicators that is popularly used to measure the state of the economy takes out low performing companies and replaces them with higher performing companies, based on stock price trends and not market cap/valuation. 

Useful.
Salute
06-20-2018, 11:07 AM,
Post: #2
RE: GE removed from DJIA
Oaf
Really? The stock market, which solely exists on the premise that people will invest in companies with the expectation of a return on their investment, is dropping a company that not perpetually growing? Whodathunk?


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