Dow Jones To Kick Out Losers From Index: Alcoa, Hewlett, BofA Out; Replaced With Goldman, Nike And Visa

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?