S&P Dow Jones announced on Monday that it will make the biggest adjustment to the Dow Jones Industrial Average in 7 years, adding three new companies, and the energy giant Exxon Mobil, which has joined the Dow for nearly 100 years, is out.
Exxon Mobil was added to the Dow Jones Industrial Average in 1928. It is the oldest existing constituent stock in the index after General Electric was removed from the Dow in 2018.
The market value of Exxon Mobil reached a peak of more than US$525 billion in October 2007. It was the largest listed company in the United States until 2011, but it was overtaken by Apple in 2012 when its market value was slightly higher than US$400 billion. As of Monday’s close, Exxon Mobil’s market value was $178.5 billion, less than one-tenth of Apple’s market value of over $2 trillion.
Compared with 50 years ago, the role of oil in the US economy is much smaller. Although shale oil technology has helped the U.S. energy sector achieve recovery and growth, the demand for fossil fuels has generally stabilized and has fallen sharply during the economic slowdown caused by the epidemic.
In the 1980s, energy companies once accounted for a quarter of the Dow’s weight. After Exxon Mobil exits next Monday, the weight of energy shares will drop to only 2%.
Post time: Aug-31-2020