In a historic event, the maker of Jet engines and electric bulb, General Electric has been replaced from the Dow Jones Industrial Average with Walgreens on June 26.
The Dow Jones Industrial Average or simply referred as Dow is an index that shows the performance of 30 large publicly owned companies over a period of time. The company which made the mark in the elite club has been the member since November 7, 1907 on a continuous basis.
General Electric is under serious pressure due to cash crisis and in connection has reduced several jobs, replaced the earlier CEO and also cut down its much sought after dividend to almost half.
This form of indignity i.e. being ousted from such an acclaimed index of the US comes, after the company, has been the consistent worst performer over the last year and also reduced in value by almost one-fourth this year.
As per the index committee reviewing the index, industrial companies in the US no longer form a larger weightage in the index and are in fact replaced by other sectors such as banks, consumer stocks, health care and tech.
The index is getting a major overhaul ever since 2015, when in the earlier case AT&T got replaced by Apple.
After the news, the scrip of GE lost as much as 2% in the after-hour trading session.