Dow index to drop 2 Charleston-area employers, Bank of America and Alcoa
The exclusive Dow Jones industrial average is swapping Bank of America for Goldman Sachs and also replacing Alcoa and Hewlett-Packard in a six-company shakeup.
Charlotte-based Bank of America is one of the Charleston area’s biggest financial institutions, and aluminum giant Alcoa operates a large smelter near Goose Creek.
S&P Dow Jones Indices says it will replace Alcoa with sporting goods giant Nike in the first three-for-three change to the index since April 8, 2004. HP is being dropped for credit card giant Visa.
The changes take effect at the start of trading Sept. 23.
S&P Dow Jones Indices manages the average and says the changes won’t disrupt the level of the index. It says a push to diversify the sector and industry group representation of the index helped prompt the changes.
The Dow is made up of 30 stocks. A small committee decides which companies are added or dropped.