Updated from 9:45 a.m. EST

American International Group ( AIG), Pfizer ( PFE) and Verizon ( VZ) will be added to the Dow Jones Industrial Average in a reshuffling to take effect April 8.

Out will be AT&T ( T), Eastman Kodak ( EK) and International Paper ( IP), according to index owner Dow Jones ( DJ).

The additions reflect the growing primacy of financial and healthcare companies in the stock market, and the declining importance of basic materials, said John Prestbo, the editor in charge of the index. AT&T and Kodak -- two of the Dow 30's oldest components -- have each hit on hard times in recent years specific less to their sectors than themselves.

"None of these changes was triggered by an event such as an imminent merger, which was the case in the past three instances of changes dating back to the early 1990s," Dow Jones noted in a release. "Rather, they recognize trends within the U.S. stock market, including the continued growth of the financial and health care sectors and the diminishing relative weight of basic materials stocks."

In the last reshuffling in November 1999, Microsoft ( MSFT), Intel ( INTC), Home Depot ( HD) and SBC ( SBC) entered, while Chevron, Union Carbide, Goodyear ( GR) and Sears ( S) left. Union Carbide was acquired by Dow Chemical ( DOW) in August 1999, Chevron merged with Texaco in October 2000, and SBC had acquired Pacific Telesis in April 1997.

The DJIA, which was first compiled in May 1896, is overseen by the news editors of, The Wall Street Journal. About $10 billion of fund assets is estimated to be indexed to the index, which is intended to reflect "established U.S. companies that are leaders in their industries."

In early trading, AIG was up $2.20, or 3.1 to $73.55; Pfizer was up 66 cents, or 1.9%, to $35.71; and Verizon was up 75 cents, or 2.1%, to $37.29.AT&T was down 26 cents, or 1.3%, to $19.31, Kodak was down 66 cents, or 2.5%, to $25.51, and International Paper was down 7 cents, or 0.3%, to $42.19.

While AT&T is departing the index, its progeny become better represented, as Verizon joins SBC among the Baby Bells currently among the components.

At $272 billion, Pfizer currently sports the biggest market capitalization among any drug company in the U.S., more than Dow components Johnson & Johnson ( JNJ) and Merck ( MRK) combined. At $191 billion, AIG's market cap puts it behind Citigroup ( C) but above J.P. Morgan ( JPM) and American Express ( AXP). Verizon, with $105 billion, is about $25 billion bigger than SBC and six times the size of AT&T.

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