Amazon to join Dow Jones Industrial Average, reflecting 'evolving nature of American economy'

By Claudia Assis

Amazon replaces Walgreens, index provider says; Uber replaces JetBlue in DJ Transportation Average

Amazon.com Inc. is set to join the Dow Jones Industrial Average in a week, a move meant to reflect "the evolving nature of the American economy," S&P Dow Jones Indices said late Tuesday.

Amazon (AMZN) replaces Walgreens Boots Alliance Inc. (WBA) in the Dow Jones DJIA. The change was prompted by Walmart Inc.'s (WMT) 3-to-1 stock split.

"Reflecting the evolving nature of the American economy, this change will increase consumer retail exposure as well as other business areas in the DJIA," S&P Dow Jones said.

Don't miss: The Dow is due for a change. These sectors may be affected.

Walmart announced its stock split late last month. The retail giant will remain in the DJIA, the index provider said.

Amazon's stock rose 1.3% in after-hours trading following the news, while shares of Walgreens dropped 3%.

S&P Dow Jones also said that Uber Technologies Inc. (UBER) will replace JetBlue Airways Corp. (JBLU) in the Dow Jones Transportation Average DJT. Both index changes are scheduled to take effect before the bell on Feb. 26.

The change "will help the index gain exposure to the ride-sharing industry," S&P Dow Jones said. The index change was prompted by JetBlue's "low weight in the index of less than one-half of one percentage point caused by its low share price." The Dow Jones Transportation Average is a price-weighted index.

JetBlue has appealed a court ruling nixing its merger with Spirit Airlines Inc. (SAVE) as it vies for a slice of the ultra-low-cost airline industry and domestic leisure travel, and it's also appealing a decision blocking its regional alliance with American Airlines Group Inc (AAL).

See also: Carl Icahn lands two JetBlue board seats days after disclosing stake in airline

-Claudia Assis

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02-21-24 0528ET

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