Amazon.com Inc. is set to join the Dow Jones Industrial Average in a week, a move meant to reflect “the evolving nature of the American economy,” S&P Dow Jones Indices said late Tuesday.
Amazon AMZN replaces Walgreens Boots Alliance Inc. WBA in the Dow Jones . The change was prompted by Walmart Inc.’s WMT 3-to-1 stock split.
“Reflecting the evolving nature of the American economy, this change will increase consumer retail exposure as well as other business areas in the DJIA,” S&P Dow Jones said.
Don’t miss: The Dow is due for a change. These sectors may be affected.
Walmart announced its stock split late last month. The retail giant will remain in the DJIA, the index provider said.
Amazon’s stock rose 1.3% in after-hours trading following the news, while shares of Walgreens dropped 3%.
S&P Dow Jones also said that Uber Technologies Inc. UBER will replace JetBlue Airways Corp. JBLU in the Dow Jones Transportation Average . Both index changes are scheduled to take effect before the bell on Feb. 26.
The change “will help the index gain exposure to the ride-sharing industry,” S&P Dow Jones said. The index change was prompted by JetBlue’s “low weight in the index of less than one-half of one percentage point caused by its low share price.” The Dow Jones Transportation Average is a price-weighted index.
JetBlue has appealed a court ruling nixing its merger with Spirit Airlines Inc. SAVE as it vies for a slice of the ultra-low-cost airline industry and domestic leisure travel, and it’s also appealing a decision blocking its regional alliance with American Airlines Group Inc AAL.
See also: Carl Icahn lands two JetBlue board seats days after disclosing stake in airline
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Claudia Assis is a San Francisco-based reporter for MarketWatch. Follow her on Twitter @ClaudiaAssisMW.
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Amazon to join Dow Jones Industrial Average next week – MarketWatch
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