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Dow Drops Bank of America, Welcomes Goldman Sachs

Amanda Alix
September 10, 2013

The Dow Industrial Average (DJINDICES: ^DJI) has gained 0.45% by midmorning today, as markets relax on the news that Syria will likely surrender its chemical weapons to avoid an air strike by the U. S.

But that tidbit will be dwarfed by an even bigger announcement earlier today -- and much closer to home: The Dow will be replacing three components of its index with three new companies, commencing with the close of the Sept. 20 trading day.

Losers, and winners
(NYSE: AA), Bank of America (NYSE: BAC), and Hewlett-Packard (NYSE: HPQ) will all be dropped from the Dow next week. Replacing them will be Nike, Visa (NYSE: V), and Goldman Sachs, marking the biggest revision of the price-weighted Dow in nearly 10 years.

What's behind this change-up? An article fromĀ The Wall Street Journal earlier today noted that the group that manages the Dow, the S&P Dow Jones Indices, co