GE Kicked Out of Dow, the Last 19th Century Member Removed

21 Juin, 2018, 16:07 | Auteur: Auguste Feret

General Electric Co's GE.N expulsion from the elite Dow Jones Industrial Average may be a bitter pill to swallow for shareholders, but it could be little more than a publicity blow for investors in the 126-year-old struggling US conglomerate.

"Since then the United States economy has changed: consumer, finance, health care and technology companies are more prominent today and the relative importance of industrial companies is less", said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. It will be replaced by Walgreens Boots Alliance (WBA).

GE stock is the last original Dow Jones member.

The Dow, a price-weighted index, gives more impact to higher-priced stocks than its cheaper ones.

GE has shrunken dramatically since it became entangled in the financial crisis a decade ago.

Brazil hold their breath as superstar Neymar limps out of training
Brazil are winless in three World Cup matches (D1 L2), their worst run since June 1978, when they went four matches without a win. However, he returned to the training pitch 48 hours ahead of the clash in Saint Petersburg, raising hopes he will feature.

Rockets fired out of Gaza as Israel strikes Hamas targets
Israel's hi-tech response and use of deadly tactics in confronting the weekly Friday protests have drawn worldwide condemnation. Seven rockets were intercepted by the Iron Dome missile-defense system, and three failed to make it out of Gaza .

Vers un nouveau rôle des entreprises — Loi Pacte
La liquidation judiciaire simplifiée deviendrait une obligation dans les entreprises de moins de 750 000€ de chiffre d'affaires. La loi met met également fin au recours obligatoire à un commissaire aux comptes pour les entreprises de taille moyenne.

The company is under investigation related to a $15 billion hit it took to cover miscalculations at an insurance unit. It's lost nearly $140 billion (U.S.) of market value in the past year, spurring a plan to shed $20 billion of assets in a bid to realign businesses and cut costs as the company grapples with debt challenges and flagging demand.

GE shares closed at $12.95 Tuesday, down 78 percent from their high of $60 a share in August 2000. "The GE that was dominant in the Dow in the Seventies and Eighties is no longer the same GE". Because of that, GE's low share price made it increasingly inconsequential to the index. However, in Walgreens' case, at $68, the price was not much above its 52-week low. The performance differential is especially notable more recently: The last five changes have seen a 3% rise for additions and a 43% rise for those stocks exiting.

"Today's change to the DJIA will make the index a better measure of the economy and the stock market", said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.

GE is now tied with 3M Co MMM.N as the Dow components that are least favored by stock analysts, according to Thomson Reuters data.

Conseillé:

  • Dr. Atul Gawande to lead Amazon, JPMorgan, Berkshire healthcare venture

    Dr. Atul Gawande to lead Amazon, JPMorgan, Berkshire healthcare venture

    Atul Gawande will serve as CEO of the company, which the group says will be "free from profit-making incentives and constraints". Neither the companies that offer health coverage nor numerous employees that use it are happy with how the system now works.
    WWE’s Leon White - aka ‘Vader’ - dies at 63

    WWE’s Leon White - aka ‘Vader’ - dies at 63

    He began his wrestling career in the 1980s after an injury forced him out of the National Football League , according to WWE. Jesse noted White was diagnosed with a severe bout of pneumonia about a month before his heart gave out on Monday.

    La société civile désapprouve "l'acharnement" contre Moïse Katumbi — RDC

    L'arrestation du principal opposant au président hors mandat Joseph Kabila fait les gros titres de tous les médias. Pour l'Asadho, l'obtention d'un passeport est un service public auquel tout congolais, voire Moise Katumbi a droit.
  • Australia's Toys R Us Stores To Close

    Australia's Toys R Us Stores To Close

    Toys "R" Us announced in March that it would liquidate its USA operations and shut down all 735 stores. McGrathNicol told Toys R Us employees about the impending closure today.
    Spain beat Iran 1-0 with Costa's third goal of World Cup

    Spain beat Iran 1-0 with Costa's third goal of World Cup

    By the time the final whistle was blown, it was a relief for Spain who had grabbed full points against a stubborn side. In order to avoid any kind of drubbing Iranian coach Carlos Queiroz adopted a safety first approach.
    World's oldest Sumatran orangutan dies aged 62

    World's oldest Sumatran orangutan dies aged 62

    She has 54 descendants, 29 still alive and spread across Australia, the US, Europe, Singapore and Sumatra . In the year 2016, she was officially recognised as the oldest of her species by Guinness World Records .
  • Once a year is not enough! - Alonso loved Le Mans bow

    Once a year is not enough! - Alonso loved Le Mans bow

    So when asked what his next goal is, Alonso said after winning at Le Mans: "I will think about what I will do next summer after this summer".

    Alessandra Sublet va remplacer Nikos Aliagas dans "C'est Canteloup"

    Elle avait dressé, sur TMC , un portrait de l'attaquant de l'Equipe de France Antoine Griezmann. C'est Alessandra Sublet qui prendra sa succession.
    Une journaliste fond en larmes en direct à la télé — Enfants migrants

    Une journaliste fond en larmes en direct à la télé — Enfants migrants

    If nothing else, it is my job to actually be able to speak while I'm on TV. Rachel Maddow est une star du petit écran outre-Atlantique.
  • Love Island 2018: Adam Accused Of 'Emotional Abuse' By Women's Charity

    He told Rosie she was on the "defence" and that he did fancy Zara but it hadn't meant anything until Rosie "acted like a child". It wants viewers to recognise unhealthy behaviour in relationships and to "speak out" against " domestic abuse ".

    Argentina vs Croatia | 21 Jun 2018

    Argentina has Messi, sure, the player Dalic and Croatia midfielder Ivan Rakitic both referred to as the best in the world. Sampaoli's choice of formation has been questioned, with many unsure about his use of three central defenders.

    La Brawn GP et la Williams FW 25 dans F1 2018

    A la surprise générale, et grâce à une astuce technique que tout le monde copiera, mais trop tard, au cours de l'année, Jenson Button devint Champion du monde de Formule 1 , tandis que Brawn GP fut CDM des constructeurs.


Populaire

Mondial-2018: Griezmann "doit faire plus", exige Deschamps
Antoine Griezmann devance Olivier Giroud d'une courte tête, l'attaquant de Chelsea réunissant 60% des suffrages. Il était peut-être un peu moins bien. "Idem pour Mbappé, qui doit plus le rechercher".

Tomorrow to be year's longest day
The summer solstice is in contrast with the December winter solstice where the country experiences longer nights and shorter days. In Canberra, Australia, the Winter Solstice Nude Charity Swim took place at Lake Burley Griffin on the shortest day of the year.

Boyfriends pays tribute as Love Island star dies aged 32
Geordie Shore star Holly Hagan said: "You were only helping me battle the Twitter trolls yesterday". Before entering the villa, she dated rugby player Danny Cipriani.

'Frustrating': Tottenham star Dele Alli posts message on Instagram after setback
When you're playing you don't think about it but after you let it sink in and it's like "I just played in a World Cup " - it's insane ".

Zendaya Stuns in Second Red-Hot Look at MTV Movie & TV Awards 2018!
Black Panther star Chadwick Boseman handed over his "Best Hero" award at the 2018 MTV Movie & TV Awards to a real-life hero. The night included several performances, including by duo Halle Bailey , left, and Chloe Bailey of Chloe X Halle.

International Yoga Day 2018
He said the proposal for the Yoga Day at the UN was accepted in record time with a majority of nations supporting it. Yoga's popularity and acceptability is spreading around the world cutting across the continents and religious lines.

Former Israeli government minister charged with spying for Iran
Local police turned him over to Israel after refusing to grant him entry to the country because of his criminal record. But Segev's lawyers, Eli Zohar and Moshe Mazor, said some of the allegations in the Shin Bet statement were overblown.

"Ya pas péno !" n'a pas été "virée" — Thomas Thouroude
Thomas Thouroude et l'équipe de Y'a pas péno ont-ils dépassé les bornes? Du moins jusqu'au dernier France-Australie. La prestation de Sébastien Thoen risque cependant de le rendre persona non grata sur les plateaux de la radio.

Wawrinka eases to opening win at Queen's
The Croatian, runner-up to Feliciano Lopez past year , dispatched Fernando Verdasco 6-3, 6-4. I'm excited (to play Murray), obviously one of my better mates on tour".

Police investigating England fans making Nazi-salutes at World Cup
English football chiefs have condemned the "disgraceful conduct" of a group of men - thought to be England fans - making Nazi salutes and anti-Semitic comments in a video.