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AIG, Verizon and Pfizer to Be Added to Dow Average; AT&T and Kodak Pulled
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| Contributor | Gerald Farinas |
| Last Edited | Gerald Farinas Apr 01, 2004 03:33pm |
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| Category | News |
| News Date | Thursday, April 1, 2004 06:00:00 AM UTC0:0 |
| Description | AIG, Verizon and Pfizer to Be Added to Dow Average; AT&T and Kodak Pulled
Bloomberg
American International Group Inc., Verizon Communications Inc. and Pfizer Inc. will be added to the Dow Jones Industrial Average, reflecting the growing importance of finance and health care to the economy and stock market. Eastman Kodak Co., International Paper Co. and AT&T Corp., the average's three smallest companies by market value, will be removed from the 107-year-old benchmark in its first overhaul in more than four years. The changes will be effective with the opening of trading on April 8, Dow Jones said in a news release. "The U.S. economy is more service-oriented," said Janna Sampson, a money manager at OakBrook Investments LLC, which manages $1.2 billion in Lisle, Illinois, and owns Pfizer shares. The changes make the Dow "look more like the broader market and broader economy."
Pfizer, the world's largest drugmaker, and American International, the top insurer, are the two biggest U.S. companies that weren't already in the Dow. Verizon, the largest U.S. local-telephone company, was the sixth-biggest stock outside the average. All three companies are based in New York. Pfizer will join fellow drugmakers Merck & Co. and Johnson & Johnson in the measure. Verizon replaces AT&T as the average's second telecommunications company; SBC Communications Inc. is the other. American International, the first insurer in the Dow, joins financial stocks American Express Co., Citigroup and J.P. Morgan Chase Inc. The changes are the first to be made since November 1999, when Microsoft Corp., Intel Corp., Home Depot Inc. and SBC were added. They replaced Union Carbide Corp., Chevron Corp., Goodyear Tire & Rubber Co. and Sears, Roebuck & Co. in the average.
The Dow average, started in 1896, is the oldest benchmark for U.S. stocks. |
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