Important adjustments to the Dow Jones Industrial Average (DJI) are set to take effect this morning.
Apple’s 4-for-1 stock split set off a cascade of changes as it shrunk the weighting of formerly the most important Dow member, to 3% from around 12%, and the overall technology representation in the index to around 20% from 27%.
The new addition of Salesforce to the Dow will bring the share of tech in the index to about 23%, and will also see Amgen and Honeywell replace iconic Exxon Mobil, Pfizer and Raytheon.
The new divisor is likely to be 0.152 from around 0.147, meaning a $1 price move in any Dow component translates to a swing of 6.579 points, from around 6.8 points.
Dow futures climbed 0.3% overnight after the blue-chip index erased 2020 losses on Friday. The Dow has rallied more than 8% this month and is also headed for its best August in 36 years.