Amazon To Replace Walgreens On Dow Jones Industrial Average

Amazon is set to join the Dow Jones Industrial Average, replacing Walgreens Boots Alliance effective next week, according to S&P Dow Jones Indices, Noel Randewich and Caroline Valetkevitch reported for Reuters.

Amazon's diverse business interests, including online retail, cloud computing, and entertainment, make it a significant addition to the index. I Photo: Edwin J. Torres, Governor Phil Murphy Flickr

Following the announcement, Amazon's shares rose 1.3% in extended trading, while Walgreens experienced a 3% decline.

The inclusion of Amazon will increase consumer retail exposure in the Dow and comes after Walmart's decision to split its stock. The Dow, established in 1896, is closely followed by retail investors and serves as an important reflection of the US stock market.

Amazon's diverse business interests, including online retail, cloud computing, and entertainment, make it a significant addition to the index. Quincy Krosby, chief global strategist at LPL Financial, noted that Amazon exemplifies the Dow's representation of commerce across the US.

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