Dow Jones Shuffle: 3 New Players On The Team

Emily Smykal, Kapitall: The Dow Jones will add three new stocks this month, replacing some well known names and intriguing investors. 

The Dow Jones Industrial Average garnered more attention than usual this week, as three companies on the index are being bumped in favor of some higher priced alternatives. Goldman Sachs Group (GS), Visa (V) and Nike Inc. (NKE) will replace Bank of America Corp. (BAC), Hewlett-Packard Co. (HPQ) and Alcoa Inc. (AA) after markets close on September 20. 

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Players in our Market Masters Tournament should pay extra attention to performance on the Dow this week, considering this is the biggest change to the index in nearly ten years. One of the departing companies, Bank of America, rose 70.6%  over the last year and has been a top performer in the Dow. But all three stocks being dropped have the lowest prices, which determines weighting in the index.

The new makeup of the Dow will give greater influence to the banking and computer industries, but the effect on individual stocks is difficult to predict. Yesterday Alcoa and HP shares dipped slightly, but Bank of America increased nearly 1% along with the major US indices.

So what should investors expect? We decided to compare the recent results of the stocks currently in the Dow to those new ones joining the index, looking specifically at their performance over the last week and the last quarter.  This left us with three of the top performers on the index in recent days – which includes one of the soon-to-be departed stocks - listed below along with the three new additions to the Dow. 

Click on the interactive chart below to see data over time. 

The Top Performers:

1. Caterpillar Inc. ( CAT): Manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Market cap at $56.29B, most recent closing price at $86.61.

Performance over the last week: 4.97%

Performance over the last quarter: 4.42%

 

2. JPMorgan Chase & Co. ( JPM): Provides various financial services worldwide. Market cap at $203.B, most recent closing price at $53.67.

Performance over the last week: 4.97%

Performance over the last quarter: 1.07%

 

3. Alcoa, Inc. ( AA): Engages in the production and management of aluminum, fabricated aluminum, and alumina. Market cap at $8.61B, most recent closing price at $8.06.

Performance over the last week: 4.27

Performance over the last quarter: -1.83%

 

The New Players:

4. The Goldman Sachs Group, Inc. ( GS): Provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and individuals worldwide. Market cap at $78.14B, most recent closing price at $165.14.

Performance over the last week: 6.71%

Performance over the last quarter: 1.45%

 

5. Visa, Inc. ( V): Operates retail electronic payments network worldwide. Market cap at $145.46B, most recent closing price at $184.59.

Performance over the last week: 4.28%

Performance over the last quarter: 2.93%

 

6. Nike Inc. ( NKE): Designs, develops, and markets footwear, apparel, equipment, and accessory products for men, women, and children worldwide. Market cap at $59.64B, most recent closing price at $66.82.

Performance over the last week: 3.94%

Performance over the last quarter: 7.88%

 

 

( List compiled by Emily Smykal, a Kapitall editor. Analyst ratings sourced from Zacks Investment Research. All other data sourced from Finviz.)

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