11
votes
Major shakeup for the Dow Jones Industrial Average index: three new stocks join
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- Title
- Dow Jones Industrial Average adds Salesforce, Amgen and Honeywell
- Authors
- Clare Duffy, CNN Business
DJIA is a travesty (for many reasons) and I wish every would stop paying attention to it. There are so many better metrics to follow if you want to get a good overview of the state of the market.
In: Salesforce (CRM), Amgen (AMGN), Honeywell International (HON)
Out: Exxon Mobil (XOM), Pfizer (PFE), Raytheon (RTN)
Amgen will become the sixth NASDAQ component of the DJIA.
The change is effective August 31, 2020.
I have to admit that I'm surprised at Honeywell. I didn't even know they were still around. When I think of Honeywell, I think of Honeywell Information Systems from the 1950-1970s era. I think my father interviewed with them after college in the 1960s. Apparently the company is very large and still going after some acquisitions and mergers over the decades. Interesting!
Massive 20th century conglomerates never die, apparently.
Plus IIRC Honeywell is a huge defense contractor, so that part of the business isn't going anywhere. I think they simply license their brand for consumer-facing products out at this point-- I have a Honeywell-branded smart thermostat, but it was manufactured by a company called Resideo, which was spun off from Honeywell a couple years ago, but apparently still licenses their trademarks.
I think it's similar to GE, Ball, and Emerson-- they all still exist in large industrial markets (Emerson made the control systems for the refrigeration units at my store, for example), but have some consumer market products that they license brands to for legacy reasons. Haier owns GE's appliance division, but they're still selling them as GE, I remember having a cheap TV in the 90s that was Emerson branded but made by some no name company. Ball's jars and canning equipment are made by Jarden (Ball is weird in that they still have their aluminum can manufacturing division along with Ball Aerospace), and I'm sure there's more companies that are set up this way now.
EDIT: At least they aren't as bad as GE, who one of my professors in college described as "a bank that dabbles in manufacturing and media", and that was when they still owned NBC and their appliances division. At this point it's a bank that really likes planes and trains.
Yeah, it's fascinating how these things work. Thanks for the info!