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The last time the Dow made a change was in August 2020, so the removal of some companies and inclusion of others will be the first in nearly 4 years.

  • the reshuffling is expected around the end of February.
  • Walmart is having a 3-for-1 stock split, to take effect when the market opens on February

Based on current prices, lowering the retail giant’s stock price by one-third would reduce its ranking in the Dow to 26th from 17th (the Dow is a price-weighted index, which means stocks with higher prices have more influence than lower-priced stocks on the index’s overall price). The big drop for Walmart will impact the consumer staples sector, of which Walmart is a member, in the index and the managers (S&P) will seek to balance this out.

I haven’t any inkling on who is likely to be out and who in. Members of the DJIA must

  • be in the S&P 500
  • be domiciled in the US
  • meet other market-capitalization and trading-liquidity standards
  • can’t be part of the transportation or utilities sectors, because those sectors are tracked by the Dow Jones Transportation Average DJT and the Dow Jones Utility Average DJU.

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