Alphabet Joins Dow, Verizon Exits

S&P Dow Jones Indices stated Alphabet's inclusion will broaden and strengthen the DJIA's exposure to dynamic U.S. economic sectors, including advertising, cloud infrastructure, artificial intelligence, hardware, autonomous mobility, healthcare technology, and media distribution. Alphabet's larger market capitalization and share price, coupled with its diverse businesses, make it a more representative Communication Services constituent in the DJIA.

Verizon represented only 0.5% of the DJIA due to its lower share price, given the index's price-weighted methodology. Additionally, Honeywell International will spin off its aerospace business, with the parent company, renamed Honeywell Technologies, remaining in the DJIA, while Honeywell Aerospace will not be included.

This spin-off is also expected to be completed by June 29. The article was written by Kelly Cloonan for Dow Jones Newswires.