Dow Jones Newswires
NEW YORK -- Reflecting a major shift toward technology companies, the
editors of The Wall Street Journal Tuesday announced the addition of
Microsoft Corp. (MSFT) to the Dow Jones Industrial Average.
Intel Corp. (INTC), SBC Communications Inc. (SBC) and specialty retailer
Home Depot Inc. (HD) also were added. The four companies will replace
Chevron Corp. (CHV), Goodyear Tire & Rubber Co. (GT), Sears Roebuck & Co.
(S) and Union Carbide Corp. (UK) as of Nov. 1.
The changes to the Dow, an index of 30 leading blue-chip companies, will
give technology and telecommunications greater representation in the
103-year-old stock-market average and add Nasdaq Stock Market issues to its
roster for the first time.
The addition of Microsoft to the Dow mirrors the dramatic shift that has
taken part in the U.S. economy over the past 25 years. Microsoft, founded in
1975 has become a dominant player in U.S. industry, pushing aside
traditional industrial and energy companies.
The impact of the software giant on the stock market was highlighted on Oct.
20 when Microsoft posted solid fiscal first-quarter results. The company
posted earnings that surged past Wall Street estimates and it painted an
optimistic outlook for the next quarter. The Nasdaq market responded
favorably to Microsoft's impressive performance and stocks rallied on the
company's earnings report.
When questioned about the possibility of a Microsoft break-up and its impact
on the Dow, John Prestbo, editor of Dow Jones Indexes and market editor of
the Journal said, "We'll just have to take a look at whatever the situation
is when we know the facts."