Eastman Kodak Co.â€™s long run on the Dow Jones Industrial Average will end on April 8, Dow Jones & Co. said Thursday. It is the first change in the 107-year-old stock index since Nov. 1, 1999.
The photo companyâ€™s stock fell some 3 percent by midday to $25.35. Kodak has been a component of the Dow since July 18, 1930.
AT&T Corp. and International Paper Co. also will be removed, Dow officials said. American International Group Inc., Pfizer Inc. and Verizon Communications Inc. will replace the trio.
â€œNone of these changes was triggered by an event such as an imminent merger, which was the case in the past three instances of changes dating back to the early 1990s,â€ said Paul Steiger, managing editor of the Wall Street Journal. By tradition, the Journalâ€™s top news editor oversees the makeup of â€œthe Dow.â€
â€œRather, they recognize trends within the U.S. stock market, including the continued growth of the financial and health care sectors and the diminishing relative weight of basic materials stocks,â€ he said.
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