Three stocks will be changed in the Dow Jones Industrial Average, effective with trading Monday, May 6.
Caterpillar Inc. will replace Navistar International Corp., Walt Disney Co. will replace USX Corp., and J.P. Morgan & Co. will replace Primerica Corp.Changes in components of the 30-stock average are decided by the editors of The Wall Street Journal, which is published by Dow Jones & Co. Inc.
"We don't make a habit of fiddling with the makeup of the industrial average because consistency along with longevity are among its important attributes," said Norman Pearlstine, Journal managing editor in an article in the newspaper Thursday.
"But in fact the average has always been a dynamic index, not a static artifact. More than two dozen stocks have been replaced over the past 62 years to reflect changes in the stock market and the economy."
The Dow Jones Industrial Average traces its history to July 3, 1884, when Charles H. Dow, a co-founder of Dow Jones, produced a stock market average consisting of 11 stocks.
The first publication of an average comparable to today's 30 industrial stocks was Oct. 1, 1928. The most recent changes in the industrial average were made in March 1987, when Coca-Cola Co. and Boeing were substituted for Owens-Illinois Inc. and Inco Ltd.