Amgen: to replace Pfizer in the Dow Jones
(CercleFinance.com) - Amgen, the US biotech giant, will enter the Dow Jones next week, replacing of Pfizer, S&P Dow Jones Indices announced Monday.
The index manager's decision may seem counter-intuitive, with Amgen announcing a stockmarket cap of 144 billion dollars on Tuesday, compared with a market cap of 211 billion dollars for Pfizer.
However, the S&P Dow Jones Indices arbitrage is part of more structural changes in view of the four-for-one stock split of Apple's stock this week, which is expected to reduce the weight of the technology sector in the index.
This major shift will also see Salesforce.com and Honeywell join the index, replacing ExxonMobil and Raytheon.
The Amgen stock was up nearly 5% on Tuesday morning. while Pfizer's stock was down over 2%.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The index manager's decision may seem counter-intuitive, with Amgen announcing a stockmarket cap of 144 billion dollars on Tuesday, compared with a market cap of 211 billion dollars for Pfizer.
However, the S&P Dow Jones Indices arbitrage is part of more structural changes in view of the four-for-one stock split of Apple's stock this week, which is expected to reduce the weight of the technology sector in the index.
This major shift will also see Salesforce.com and Honeywell join the index, replacing ExxonMobil and Raytheon.
The Amgen stock was up nearly 5% on Tuesday morning. while Pfizer's stock was down over 2%.
Copyright (c) 2020 CercleFinance.com. All rights reserved.