Amazon to be added to the Dow Jones Industrial Average, replacing Walgreens Boots Alliance

NEW YORK — Inc. is added to the Dow Jones Industrial Average, joining Apple, Walt Disney, Walmart and other companies that make up the average of 30 stocks.

The e-commerce giant will replace drugstore operator Walgreens Boots Alliance in the Dow before the opening of trading on Monday S&The P Dow Jones indices reported this on Tuesday.

The shift was prompted by Walmart’s decision to implement a 3-for-1 stock split, which will reduce the stock’s weighting in the index. The Dow is a price-weighted index, so stocks that fetch higher prices are given more weight.

Seattle-based Amazon will join the Dow Jones on the same day Walmart implements its stock split.

“This change reflects the evolving nature of the U.S. economy and will increase exposure to consumer retail and other business areas in the DJIA,” said S.&P Dow Jones Indices said.

Amazon’s entry into the Dow Jones, Walgreens’ departure and Walmart’s stock split will cause a ripple effect on the weighting of Dow stocks. Once the shift is complete, Amazon’s weighting in the Dow Jones will rank 17th out of 30 stocks in the index. Walmart’s weighting will drop from 17 to 26. UnitedHealth Group remains the most heavily weighted stock in the index.

Also before the start of trading on Monday, ride-sharing service Uber Technologies will be added to the Dow Jones Transportation Average, S&P Dow Jones Indices said.

The change helps give the index exposure to the ride-sharing industry.

San Francisco-based Uber will take the spot now occupied by JetBlue Airways, whose low share price saw its weight in the index fall to less than half a percentage point.

S&P Dow Jones Indices made the announcements after the closing bell. Shares of Amazon rose 1.4% in after-hours trading, while shares of Uber rose 1.1%.