Dow 30: Exxon, Pfizer Out, Salesforce In

The dispensability of a firm in a stock market index is one of the things that the pandemic made sure of.

Salesforce today secured its coveted spot in the Wall Street, replacing oil and gas corporation ExxonMobil. Just in time, automation and digitization conquered the shifting work strategy from traditional to work-from-home and remote job schemes.

The software company is now in the ranks of the 30 large publicly traded companies, namely Goldman Sachs and Boeing, among others.

This major reshuffle is a manifestation of the DJIA’s more embracing stance towards technology companies and a slight shift from its usual industries-heavy path.

According to the Dow Jones’ manager, this will reduce the overlap between companies operating on similar scope, thus reflecting better on the American economy.

Salesforce’s official entry into force to the index will happen at the start of trading next week, August 31.

This is the same period where Apple and Tesla will offer their historic stock-split after skyrocketing per share prices. Therefore, the move will cushion the blow from the disruption to be created by the $2 trillion tech giant.

Down with One, Up with Another

This is the first time since the DJIA expanded to 30 listings in 1928 that ExxonMobil will not be included in the roster.

Since the start of the pandemic, the oil and gas industry weathered severe macroeconomic headwinds, weighing the firm down.

Similarly, Pfizer made a good run while included in the Dow 30 since its inclusion in 2004. It replaced the photography company Kodak which has been on the list since 1930.

Following the release of the announcement, Salesforce stocks ballooned by 3% in after trading hours, and 0.5% in regular session.

The $188 billion software firm is due to release earnings report. Analysts expect a 2% increase, translating to 67 cents in earnings per share, after two quarters of losing streak.