GE Falls After Being Removed From Dow Jones Industrial Average
(Bloomberg) -- General Electric, an original and steadfast component, will be replaced by Walgreens Boots in the Dow Jones Industrial Average as of June 26.
- GE’s significant underperformance in the past few months had led many investors to contemplate the possibility of an ouster from the Dow, especially as the difference between GE’s market capitalization and that of other component companies widened
- GE has been by far the worst in the Dow for more than a year while contending with weak demand for industrial equipment and cash-flow challenges
- Shares are down 1.1% in post-market trading; below the 9-year intraday low hit in March
- The stock fell 24 percent so far this year and a loss of 53 percent in the past 52 weeks
- Walgreens will become the latest health-care company to be included in the market gauge, joining UnitedHealth Group Inc., the largest U.S. health insurer by market value, as well as drugmakers Pfizer Inc., Merck & Co., and Johnson & Johnson
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