Walgreens Boots Alliance is set to be replaced by Amazon in the Dow

This alteration will go into effect before the trading session opens on Monday, 26^th of February.

The purpose of this alteration is to improve consumer retail exposure as well as other business sectors within the DJIA, in response to the dynamic movements in the American economy. The DJIA member Walmart choosing a 3:1 stock split was an important factor in the decision to make this move.

Due to the price-weighted index composition, Walmart's index weight will decrease as a result of this stock split, but the company will remain a constituent in the DJIA.

Additionally, the announcement was made that Uber will replace JetBlue Airways in the Dow Jones Transportation Average. The purpose of this change is to add ride-sharing industry exposure to the index. As a result of its low share price, JetBlue has a modest influence on the index—less than half a percentage point—which led to the decision to make this alteration.

Since the Dow Jones Transportation Average is a price-weighted index, extremely cheap companies have relatively little impact on the index as a whole.

(Sources: investing.com, reuters.com)