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Deals & People September 18, 2008
Bailed-Out AIG Loses Spot on Dow
Dow Jones&Company announced that Kraft Foods Inc. (KFT) will replace American International Group Inc. (AIG) in the Dow Jones Industrial Average, effective September 22.
Reported by Fred Schneyer
A Dow Jones news release said the 112-year-old stock index was previously changed on February 19, when two stocks out of 30 were replaced. AIG has been in the Industrial Average since April 1, 2004.
The Wall Street Journal‘s top news editor oversees the makeup of “The Dow,” which Charles H. Dow created as a 12-stock index in May 1896.
“We are refraining at this point from adding another stock in the financial industry because of the extremely unsettled conditions,” said Robert Thomson, managing editor of The Wall Street Journal, in a release. “We realize this decision leaves the Dow Jones Industrial Average underweighted in financials, and we will address this situation in due course. We are adding Kraft because the Dow Jones Industrial Average had no representation in food products. Kraft is one of the world’s leading food companies.”
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