Winvesta Crisps

Share this post

The Domino Effect - Apple Stock Split Brings DJIA Shuffle

www.winvestacrisps.in

Discover more from Winvesta Crisps

Learn about US stocks before you invest. Your daily boost of newsworthy stories and deep dives in a bite-sized format. Reading time ~3 minutes.
Over 22,000 subscribers
Continue reading
Sign in

The Domino Effect - Apple Stock Split Brings DJIA Shuffle

What you need to know before the US markets open 🇺🇸

Aug 25, 2020
Share this post

The Domino Effect - Apple Stock Split Brings DJIA Shuffle

www.winvestacrisps.in
Share

Hey Global Investor, here's what you need to know before the US markets open.

Market Snapshot 📈

S&P 500 (Monday Close) 3,431.28 +34.12 (1.00%)

NASDAQ (Monday Close) 11,379.72 +67.92 (0.60%)

FTSE 100 (5 PM IST) 6114.68 +9.95 (+0.16%)

NIFTY 50 (Today's Close) 11,472.25 +5.80 (0.051%)

USDINR (5 PM IST) 74.22 (1 Year +3.71%)


The Dow Shuffle – Apple’s Stock Split Brings About Major Changes

On Monday, the S&P Dow Jones Indices announced a significant recast of the Dow Jones Industrial Average. The Dow is switching out Exxon Mobil, Pfizer, and Raytheon, and replacing them with Salesforce, Amgen, and Honeywell, the first three-stock change since 2013.

What Happened? The Dow is price-weighted, meaning stocks with higher share prices are given greater weightage. Apple’s announcement of the 4-for-1 stock split meant the 30-stock benchmark’s exposure to technology was lowered from 27.6% to 20.3%. To bring the DJIA’s tech weight back into range, Exxon Mobil will make way for cloud-based CRM giant Salesforce.com. At the same time, biopharma company Amgen will replace pharma giant Pfizer; industrial conglomerate Honeywell will take the place of defense contractor Raytheon Technologies.

This recast will help diversify the 124-year old index by eliminating overlap between companies of similar scope; in many ways, the index will be a better reflection of the American economy.

Stock splits within DJIA are rare. The last was Nike’s 2-for-1 split in 2015, with Apple being just the 18th since 1999. [As an aside, Apple has single-handedly lifted Dow by 1400 points in 2020].

The recast is effective August 31st with UnitedHealth Group, Home Depot, and Amgen taking the top three spots. Apple drops to 17th from the top spot

Market Reaction: After-hours, Salesforce shares rose 3.8%, while Exxon Mobil shares retreated 1.6%. Amgen rallied 4%, while Pfizer shed 1.6%; and Honeywell rose 3.7%, while Raytheon dropped 3%.

The DJIA closed 1.35% higher at 28,308.46, just 4% shy of its all-time high of 29,568.57 which was recorded on February 12, 2020.

Snapshot 📈

CRM $208.46 +0.93 (+0.45%)

AMGN $235.57 -2.07 (-0.87%)

HON $159.37 +1.87 (+1.19%)

DJI 28,308.46 +378.13 (+1.35%)


Newsworthy 📰

  • Great Timing: Unity’s IPO filing shows how big a threat it poses to Epic and the Unreal Engine 

  • Helping Hand: General Atlantic, Sequoia Capital pushing Oracle’s bid for TikTok (ORCL +1.48%)

  • Sooner than Expected: Amazon Go’s cashierless tech may come to Whole Foods as soon as next year (AMZN +0.69%)


Later Today 🕒

  • 6:30 PM IST: Case-Shiller national home price index (year-over-year)

  • 7:30 PM IST: Consumer confidence index

  • 7:30 PM IST: New home sales (SAAR)

  • 9.00 PM IST: Richmond Fed President Tom Barkin speaks

  • After Market Close: Intuit Inc Earnings

  • After Market Close: Salesforce Inc. Earnings


Fun Fact of The Day 🌞

Bill Gates wanted to call Windows as Interface Manager


You can start investing in US stocks with platforms like Winvesta. Get an account in as little as 15 minutes and start building your global portfolio today.

Share this post

The Domino Effect - Apple Stock Split Brings DJIA Shuffle

www.winvestacrisps.in
Share
Top
New
Community

No posts

Ready for more?

© 2023 Winvesta India Technologies Ltd.
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing