General Electric (GE) is going to be replaced by drugstore chain Walgreens Boots Alliance on the Dow Jones industrial average. The change will happen before the open on June 26.
Tom Barkley is a professor of finance practice and director of the MS in Finance Program at Syracuse University’s Whitman School of Management. Barkley says the move will improve the accuracy of the index.
Barkley says:
“As the last of the original firms that were in the index when it was created in 1896, General Electric has some history behind it. However, the conglomerate has been in decline for the past few years, and replacing it with a firm in the growing healthcare sector (Walgreens Boots Alliance) seems only sensible.
“This will improve the accuracy of the index as a measure of the state of economy seen through the lens of the stock market.”
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