General Electric loses century-old spot in Dow Jones Industrial Average

Galtero Lara
Junio 20, 2018

General Electric's (GE) 111-year run as one of the Dow Jones industrial average's 30 components is coming to a close.

Still, there's some cold comfort for those GE investors that are sticking around: Getting kicked out of the Dow doesn't necessarily mean more losses to come-though it could well get worse.

S&P Dow Jones Indices said Tuesday that GE will be removed from index before the open of trading next Tuesday.

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"Since then the U.S. economy has changed: consumer, finance, health care and technology companies are more prominent today and the relative importance of industrial companies is less", said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.

The industrial conglomerate has struggled for years with sluggish or declining earnings and sales, slashing its dividend in half in late 2017.

During the regular session, GE stock fell 1.9% to 12.95, falling as low as 12.75. A number of restructurings and divestitures have failed to revive GE's fortunes.

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