Cloud-based software provider salesforce.com (NYSE: CRM) has joined the ranks of what many consider to be the most influential and exclusive stock index of them all: the Dow Jones Industrial Average (DJIA, or simply “the Dow”). On Monday, S&P Dow Jones Indices — the company that manages the Dow — announced after market close that Salesforce will become one of its 30 components prior to the start of trading on Monday, Aug. 31.
With its graduation, the veteran cloud computing company displaces oil and gas giant ExxonMobil. This is one of three changes to the DJIA. The other two are biotech Amgen (NASDAQ: AMGN) supplanting pharmaceutical peer Pfizer and engineering conglomerate Honeywell International (NYSE: HON) replacing Raytheon Technologies.
The changes are due to Apple’s (NASDAQ: AAPL) recent 4-for-1 stock split. As S&P Dow Jones Indices explained in its announcement, its actions “will reduce the index’s weight in the Global Industry Classification Standard (GICS) Information Technology sector. The announced changes help offset that reduction.”
“They also help diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy,” the Dow’s manager added.
Often seen as a bellwether or proxy for the broader stock market, the DJIA consists of some of the most well-known blue chips actively traded among investors. Its components are sizable. Salesforce, for example, boasts a market capitalization of nearly $188 billion.
Salesforce has not yet commented on its inclusion in the index. In after-hours trading Monday following the release of the news, investors bid the stock up by just over 3%. During the regular trading day, it had risen by nearly 0.5%.
In addition, The Dow Jones climbed on Monday, as drug stocks climbed after President Donald Trump signaled an aggressive stance to push COVID-19 medical treatments to return the economy closer to normalcy.
Futures on the Dow Jones Industrial Average YM00, 0.74% rose 216 points.
After Trump accused the Food and Drug Administration of trying to sabotage his re-election efforts, the FDA gave emergency approval for the use of blood plasma from recovered coronavirus patients, which hasn’t been proved by scientific trials. The Financial Times said Trump may order the FDA to grant approval to the University of Oxford vaccine to be distributed by AstraZeneca in the same manner.
“The drug in question still has a long way to go in terms of development, but the bulls have jumped on the story. Keep in mind that stocks were coming from a low base as markets fell on Friday on the back of the largely disappointing manufacturing and services data from France and Germany,” said David Madden, market analyst at CMC Markets U.K.
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.