NEW YORK (AP) — The Dow Jones industrial average is adding Travelers (TRV) and Cisco Systems (CSCO), dropping Citigroup (C) and General Motors (GM).
The announcement Monday of the changes to the 30 stocks that make up the best-known barometer of Wall Street comes as GM enters bankruptcy protection, a move that was widely expected.
Dow Jones said in a statement that Travelers, the property and casualty insurer and one-time division of Citigroup, would replace its former parent. Cisco, which makes computer networking gear, is filling the role left by GM after 83 years as part of the Dow.
The changes take effect June 8.
Dow Jones said it chose Travelers to increase the representation of the financial industry to the index. Dow dropped insurer American International Group in September after the federal government funneled billions to the company to keep it afloat during the financial crisis. Kraft Foods replaced AIG.
The company said the change in the fall left financials underrepresented in the index.
Dow Jones added Cisco "because its communications and computer-networking products are vital to an economy and culture still adapting to the Information Age — just as automobiles were essential to America in the 20th century," Wall Street Journal Managing Editor Robert Thomson said in a statement.
Changes occur rarely, though analysts widely expected GM would be replaced if it sought bankruptcy protection. GM was added twice, first for about a year and a half in 1915 and then in August 1925. Only General Electric has been a component longer. The conglomerate has been in the index since the index began with 12 stocks in 1896.
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