Oh, no wonder the Dow keeps rising...

[EE_]

Dow Jones To Kick Out Losers From Index: Alcoa, Hewlett, BofA Out; Replaced With Goldman, Nike And Visa
Submitted by Tyler Durden on 09/10/2013 - 08:41

In what has become an unspoken tradition for the Dow Jones, which maintains its upward bias by kicking out underperformers and replacing them with the investor darlings du jour, we just learned that as part of its next three-for-three rebalancing, the first since 2004, the DJIA will kick out such recent losers as Alcoa, Hewlett Packard and Bank of America, and will be replaced with Goldman, Nike and Visa:

•ALCOA, BANK OF AMERICA, HEWLETT-PACKARD TO LEAVE DJIA
•GOLDMAN SACHS, VISA, NIKE TO JOIN DJ INDUSTRIAL AVERAGE
•CHANGES WERE PROMPTED BY THE LOW STOCK PRICE OF THE THREE COMPANIES SLATED FOR REMOVAL

What, no inclusion of Apple, Tesla or Netflix? Also, for those keeping track, there are now 10 "industrials" in the 30 company index that make, well, nothing. And how soon until the entire DJIA becomes one daily rebalanced ETF, which has as constituents only stocks that have traded up 5% or higher on the prior trading day?

[gunDriller]

"David Blitzer, Chairman of the Index Committee."

http://www.foxbusiness.com/industries/2013/09/10/goldman-visa-nike-added-to-dow-bofa-h-p-alcoa-dropped/

SURPRISE ! a Jew running the Dow Index Committee.


MMM 3M Co 117.62 +0.88 +0.75% 189,993 +26.58%
AA Alcoa Inc 8.05 -0.03 -0.37% 6,204,957 -7.03%
AXP American Express Co 74.63 +0.97 +1.32% 208,858 +29.71%
T AT&T Inc 33.90 +0.27 +0.79% 9,187,189 +0.53%
BAC Bank of America Corp 14.57 +0.09 +0.62% 19,941,865 +26.10%
BA Boeing Co 108.25 +1.06 +0.99% 385,007 +43.34%
CAT Caterpillar Inc 86.78 +1.19 +1.39% 997,952 -3.36%
CVX Chevron Corp 121.40 -0.82 -0.67% 618,188 +12.60%
CSCO Cisco Systems Inc 24.13 +0.21 +0.88% 3,940,765 +23.06%
DD E. I. du Pont de Nemours and Co 57.85 +0.35 +0.61% 322,708 +28.84%
XOM Exxon Mobil Corp 87.60 -0.44 -0.50% 1,119,854 +1.16%
GE General Electric Co 23.73 +0.34 +1.45% 3,795,152 +13.58%
HPQ Hewlett-Packard Co 22.19 -0.17 -0.76% 4,207,183 +55.93%
HD Home Depot Inc 73.95 +0.37 +0.50% 503,126 +19.45%
INTC Intel Corp 22.99 +0.08 +0.35% 2,533,282 +11.45%
IBM International Business Machines Co... 186.55 +1.57 +0.85% 401,209 -2.43%
JNJ Johnson & Johnson 88.22 +0.66 +0.75% 754,384 +25.83%
JPM JPMorgan Chase and Co 53.52 +0.66 +1.24% 2,840,752 +21.96%
MCD McDonald's Corp 96.61 +0.16 +0.17% 662,981 +9.57%
MRK Merck & Co Inc 48.20 +0.46 +0.96% 1,328,892 +17.44%
MSFT Microsoft Corp 32.16 +0.51 +1.60% 5,695,543 +20.24%
PFE Pfizer Inc 28.46 +0.16 +0.57% 2,264,669 +13.36%
PG Procter & Gamble Co 78.46 +0.30 +0.39% 486,114 +15.51%
KO The Coca-Cola Co 38.67 +0.15 +0.38% 1,194,944 +6.54%
TRV Travelers Companies Inc 82.33 +0.14 +0.17% 204,263 +14.40%
UTX United Technologies Corp 105.90 +1.42 +1.36% 222,607 +29.11%
UNH UnitedHealth Group Inc 74.26 +0.01 +0.02% 316,105 +36.26%
VZ Verizon Communications Inc 45.74 -0.17 -0.37% 1,397,366 +5.34%
WMT Wal-Mart Stores Inc 74.17 +0.67 +0.90% 615,795 +8.54%
DIS Walt Disney Co 62.41 +0.82 +1.34% 867,108 +25.57%

from before the switch-out/ rotation of Dow components.
http://money.cnn.com/data/markets/dow/

i'm surprised so few are 'financial services'.

[mamboni]

The Stock Indices have always worked this way. This is why index funds generally outperform actively managed stock funds: the positive price bias is baked into it.

[EE_]

The Stock Indices have always worked this way. This is why index funds generally outperform actively managed stock funds: the positive price bias is baked into it.

I know that...I'm just wondering if I can do that at Income Tax time, except in opposite? Show only the losses and and kick out the gains.

[Ares]

I know that...I'm just wondering if I can do that at Income Tax time, except in opposite? Show only the losses and and kick out the gains.

Anything dealing with government, what's good for the goose is definitely not good for the gander.