Jim Cramer: Salesforce, Amgen, Honeywell add more tech to the Dow Jones
"I think these moves make a lot of sense. They bring the Dow closer to the reality of the new economy, not the memory of the old economy," the "Mad Money" host said. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6
The due changes to the Dow Jones Industrial Average will make the index more in tune with the new economy, CNBC’s Jim Cramer said Tuesday.
The 30-stock index, which is managed by S&P Dow Jones Indices, is set to swap three components at the end of the month, motivated by a stock split planned by the most influential company on the list.
The moves will further a much-needed modernization of the blue-chip average, he said.
“This rebalancing came about because of a need for more technology in this index, given how big the tech sector’s become,” the “Mad Money” host said. “I think that the job’s almost done.”
The S&P Dow Jones Indices announced Monday that oil giant Exxon, drugmaker Pfizer and defense contractor Raytheon will be dropped from the Dow index. In their places will go cloud subscription software maker Salesforce, biotech firm Amgen and conglomerate Honeywell, respectively.
The shakeup was spurred by Apple’s forthcoming 4-for-1 stock split, which will go into effect Monday. The split will reduce the tech giant’s top ranking on the price-weighted average, thus diminishing the index’s exposure to the information technology sector.
S&P Dow Jones Indices announced that the shuffle, the first swap since Walgreens was added in 2018, will “help diversify the index,” cut back on overlap on the index and include businesses that “better reflect the American economy.”
The Dow Jones slipped 0.21%, or 60 points, to 28,248.44 during the trading day. The benchmark S&P 500 index moved 0.36% to 3,443.62, and the tech-heavy Nasdaq Composite moved 0.76% to 11,466.47, both reaching fresh highs.
“These changes had an enormous impact on today’s action,” Cramer said, adding, “I think these moves make a lot of sense. They bring the Dow closer to the reality of the new economy, not the memory of the old economy.”
Cramer made the following comments on each addition:
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
For info on the best credit cards go to CNBC Select:
https://www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV
Видео Jim Cramer: Salesforce, Amgen, Honeywell add more tech to the Dow Jones канала CNBC Television
The due changes to the Dow Jones Industrial Average will make the index more in tune with the new economy, CNBC’s Jim Cramer said Tuesday.
The 30-stock index, which is managed by S&P Dow Jones Indices, is set to swap three components at the end of the month, motivated by a stock split planned by the most influential company on the list.
The moves will further a much-needed modernization of the blue-chip average, he said.
“This rebalancing came about because of a need for more technology in this index, given how big the tech sector’s become,” the “Mad Money” host said. “I think that the job’s almost done.”
The S&P Dow Jones Indices announced Monday that oil giant Exxon, drugmaker Pfizer and defense contractor Raytheon will be dropped from the Dow index. In their places will go cloud subscription software maker Salesforce, biotech firm Amgen and conglomerate Honeywell, respectively.
The shakeup was spurred by Apple’s forthcoming 4-for-1 stock split, which will go into effect Monday. The split will reduce the tech giant’s top ranking on the price-weighted average, thus diminishing the index’s exposure to the information technology sector.
S&P Dow Jones Indices announced that the shuffle, the first swap since Walgreens was added in 2018, will “help diversify the index,” cut back on overlap on the index and include businesses that “better reflect the American economy.”
The Dow Jones slipped 0.21%, or 60 points, to 28,248.44 during the trading day. The benchmark S&P 500 index moved 0.36% to 3,443.62, and the tech-heavy Nasdaq Composite moved 0.76% to 11,466.47, both reaching fresh highs.
“These changes had an enormous impact on today’s action,” Cramer said, adding, “I think these moves make a lot of sense. They bring the Dow closer to the reality of the new economy, not the memory of the old economy.”
Cramer made the following comments on each addition:
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
For info on the best credit cards go to CNBC Select:
https://www.cnbc.com/select/best-credit-cards/
#CNBC
#CNBCTV
Видео Jim Cramer: Salesforce, Amgen, Honeywell add more tech to the Dow Jones канала CNBC Television
Показать
Комментарии отсутствуют
Информация о видео
Другие видео канала
Earnings Alert: Alphabet surges after earningsIs the tech rout over? Two experts break down the sector's latest rallyJim Cramer expects some causes of inflation 'to get worse' before they get betterCroft: There are only a few OPEC members who can add more barrels of oil to the marketJim Cramer recommends investors with big gains trim holdings and protect profitsGM shares climb on strong full-year forecast, better-than-expected earningsFirestone: Identifying beaten-down names for your shopping listJim Cramer: 10 tech stocks to buy now in this coronavirus-plagued marketCramer's lightning round: Corning Inc. can still go higherJim Cramer: It's hard to go wrong with the great outdoors stocksWedbush's Kulina: Alphabet's acceleration looks "extremely sustainable"Jim Cramer shares his outlook for the top 5 largest holdings in the Ark Innovation ETFSticker Shock! Used cars are more expensive than some new modelsJim Cramer on stock sell-off: 'I sure don't like most of the market'Jim Cramer: Charts map out more potential upside in S&P 500, Dow, Nasdaq indexesJim Cramer previews corporate earnings reports for the trading week of Sept. 21Jim Cramer: The market has likely 'taken a depression off the table'Jim Cramer: My most trusted market indicator 'makes me concerned' about the market's trajectoryJim Cramer says the factors driving inflation are 'still winning the race' right nowJim Cramer: The oil collapse isn't the end of the world