Intel Was Just Dropped From the Dow. History Says This Is What Will Happen Next.

Intel (NASDAQ: INTC) stock popped Friday after it reported ugly third-quarter results but its outlook for the fourth quarter was better than expected. However, the celebration was short-lived, as S&P Global announced after hours that rival Nvidia would replace Intel in the Dow Jones Industrial Average (DJINDICES: ^DJI).S&P Global said that the move would give a more representative exposure to the semiconductor industry as the Dow Jones is a price-weighted index and Nvidia's share price is much higher than Intel's. In fact, Intel had the lowest share price of any of the 30 Dow stocks, meaning it had the least influence on the index. The move will go into effect on Friday, Nov. 8, when the index will also swap out chemical company Dow for Sherwin-Williams for similar reasons. Intel has been a Dow component since 1999, so the move will bring its 25-year run to an end.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool