The financial crisis has reshapedthe Dow Jones industrial average–the stock market's barometer hasadded the Travelers Cos. and Cisco Systems Inc., replacingCitigroup Inc. and General Motors Corp. Travelers replacesCiticorp, its former parent. Cisco is filling the role left by GMafter 83 years on the index. The changes took place June 8.
Travelers' selection maintains the representation of thefinancial industry in the index. Dow dropped AIG in September afterthe federal government funneled billions to the company. KraftFoods replaced AIG.
|Changes to the Dow likely won't affect many investors becausethe index is weighted by price. The low share values of Citi and GMindicates they have held less sway in recent months. Dow willadjust the formula by which the index is calculated, so theaddition of Travelers and Cisco won't affect the value of theaverage.
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