Alphabet replaces Verizon in Dow Jones Industrial Average
S&P Dow Jones Indices said Alphabet will join the Dow Jones Industrial Average on June 30, replacing Verizon after a 21-year run. The swap notably increases the index's technology weight and lifts Alphabet into the top tier of components in the price-weighted basket.
S&P Dow Jones Indices announced Tuesday evening that Alphabet's Class A shares will join the Dow Jones Industrial Average at the close of trading on June 30, with Verizon Communications removed. Verizon had been a component for about twenty-one years, dating back to the 2004 merger with SBC Communications.
The committee said the move aligns the index's sector representation with the broader US economy. Alphabet, trading near 175 dollars, will enter the price-weighted gauge among its top ten constituents and lift the technology sector's total index weight to roughly 27 points.
Alphabet shares climbed 1.4 percent after the bell while Verizon slipped 2.1 percent. JPMorgan strategists estimated passive index funds will need to buy about 1.5 billion dollars of Alphabet to rebalance, with a parallel 800 million dollars of Verizon selling. The shift pushes the Dow's technology weighting decisively ahead of automotive and energy companies in the benchmark.
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