The financial crisis has reshaped the Dow Jones industrial average–the stock market's barometer has added the Travelers Cos. and Cisco Systems Inc., replacing Citigroup Inc. and General Motors Corp. Travelers replaces Citicorp, its former parent. Cisco is filling the role left by GM after 83 years on the index. The changes took place June 8.
Travelers' selection maintains the representation of the financial industry in the index. Dow dropped AIG in September after the federal government funneled billions to the company. Kraft Foods replaced AIG.
Changes to the Dow likely won't affect many investors because the index is weighted by price. The low share values of Citi and GM indicates they have held less sway in recent months. Dow will adjust the formula by which the index is calculated, so the addition of Travelers and Cisco won't affect the value of the average.
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