| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 812.1 | | EVMS::HALLYB | Fish have no concept of fire | Fri Dec 30 1994 13:25 | 12 |
| Add up the prices. Divide by a magic constant published by Dow Jones.
(See, for example, _Barron's_ Market Laboratory section. Look around.)
The magic constant was "30" at one time. 100 years ago, to be precise.
But, stock splits and changes of companies force that constant to be
twiddled to adjust prices so that one edition of the average terminates
at the exact price that the next edition begins.
Every few years this happens. This year's DOW is quite different from
the one in effect when you were born.
John
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| 812.2 | 4 DJIA stocks being replaced | 2155::michaud | Jeff Michaud - ObjectBroker | Thu Mar 13 1997 01:04 | 8 |
| Starting Monday four stocks that make up the DJIA will be
replaced (that's 13% of the 30 stocks that make up that average!).
The stocks being replaced are Woolworth, Beth. Steel, Westinghouse,
and Texaco.
The stocks being added (replacing the above stocks) are Johnson
and Johnson, Walmart, Travellers, and Hewlett Packard.
|
| 812.3 | | UCXAXP::KIMMEL | | Thu Mar 13 1997 17:07 | 7 |
| They had an interesting take on this on CNBC this morning.
The stocks being replaced were generally in a downward trend over
the last 10 years, while the stocks coming in were in an upward
trend.
Implication - the DJIA will be moving up more rapidly now.
|
| 812.4 | | DECCXL::WIBECAN | That's the way it is, in Engineering! | Thu Mar 13 1997 17:20 | 3 |
| >> Implication - the DJIA will be moving up more rapidly now.
That explains the 160 point drop today. :-)
|
| 812.5 | | 2155::michaud | Jeff Michaud - ObjectBroker | Thu Mar 13 1997 19:17 | 18 |
| >> Implication - the DJIA will be moving up more rapidly now.
> That explains the 160 point drop today. :-)
Wiseguy :-) The new stocks are only part of the DJIA starting
on Monday.
The biggest loser among the DJIA today wasn't any of the stocks
that will no longer be part of the DJIA, it was Phillip Morris,
down over 10 points (over 7%).
Last night I heard some commentary that it wasn't expected that
being stocks being dropped from the DJIA will be affected much
by the news. That's because there's really not much money in
mutual funds that index the DJIA. Stocks that get dropped or
added to the S&P500 are the ones that usually see corresponding
movement in their stock prices because of the number of index funds
(and the amount of money in those funds) that have to by their charter
mirror the S&P500.
|
| 812.6 | | ASDG::WATSON | Discover America | Fri Mar 14 1997 12:25 | 5 |
| Could disrupt the "Dow Dogs" portfolio owners...
Lends some prestige factor to HP as well. Something we don't need.
It would have been better to get Intel to defect and put them in
the Dow 30...
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| 812.7 | | UCXAXP::KIMMEL | | Fri Mar 14 1997 14:33 | 11 |
| Well, as luck would have it...
CNBC had the author of the Dow Dogs on this morning. I forget his
name.
When asked this very question he said - nope - no disruption because
you would still hold the stocks for the entire year. In other words,
you wouldn't change any allocation until next year - regardless of
any change in status of the stocks in question.
I too, by the way, would also have liked to see INTC get in there
instead of HWP.
|