Hewlett-Packard Booted off from Dow Index

According to Irish Examiner Ltd. (IEL), Hewlett-Packard’s shares have declined for three consecutive years and the company is being removed from the Dow Jones Industrial Average. IEL believed that in a historic slump in the PC industry, this indicates fading confidence in the company’s efforts.

Forbes also reported HP’s removal from the Dow Index. Forbes expressed the Dow Jones Industrial Average (DJIA) is used to represent the core of America’s economy and it is one of the most arresting indices of all markets. Plus, Forbes noted each trading day, many people track how it floats, which shows being part of the DJIA is a big deal.

Forbes said Hewlett-Packard (HP) is an early innovator in test equipment and was one of the original “Silicon Valley” companies. However, as was reported by IEL, now at about $22, HP is the third lowest-priced stock in the Dow index. IEL added HP’s removal from the Dow, the biggest reshuffling of the index since April 2004, is a blow to Chief Executive Meg Whitman’s efforts to revive growth at HP.

Commenting on HP’s departure from the Dow, Shannon Cross, an Analyst at Cross Research, said, “It’s certainly not something you want to happen on your watch. The Dow is more about symbolism and prestige than anything else.”

Besides HP, Bank of America and Alcoa are also being booted off. While Goldman Sachs Group, Visa, and Nike will be added to the Dow Jones index .Four technology companies will stay: Cisco Systems, Microsoft, Intel, and International Business Machines.