The Dow and broader U.S. stock market continued higher on Wednesday, as surging tech shares continued to lead the charge.
The Dow Jones Industrial Average rose on Wednesday but continued to underperform its wider-market peers after the index announced significant changes to its constituents.
All of Wall Street’s major indexes reported gains Wednesday, though the Dow continued to underperform its peers. The Dow 30 edged up 83.48 points or 0.3%, to 28,331.92.
Among the current Dow 30 industrials, Dow Inc. (NYSE:DOW) rallied 2.2%, Home Depot Inc. (NYSE:HD) gained 2%, and Walt Disney Co (NYSE:DIS) rose 1.8%.
On the opposite side of the ledger, Walgreens Boots Alliance (NYSE:WBA) and ExxonMobil Corp (NYSE:XOM) each fell more than 2%.
The CBOE Volatility Index, commonly known as the VIX, continues to trade just above its historical average. VIX rose 5.6% to 23.27 on a scale of 1-100, where 20 represents the historic average.
The Dow 30 index is preparing for major adjustments next week. In a decision that was prompted by Apple’s (NASDAQ:AAPL) upcoming four-for-one stock split, S&P Dow Jones Indices announced earlier this week it would swap out three companies to reduce its exposure to the technology sector.
Beginning Aug. 31, ExxonMobil Corp (NYSE:XOM), Pfizer Inc. (NYSE:PFE), and Raytheon Technologies (NYSE:RTX) will be replaced by Salesforce.com (NASDAQ:CRM), Amgen (NASDAQ:AMGN), and Honeywell International (NYSE:HON).
ExxonMobil’s exit is especially notable given the oil giant’s 92-year history on the index. Like other energy producers, Exxon has been hit hard by the multi-year collapse in crude prices. Exxon and Chevron Corp (NYSE:CVX), another Dow constituent, posted their largest quarterly loss in history last month.
As a whole, energy stocks are down more than 33% over the past 12 months. By comparison, information technology is up over 55%.
Unlike the S&P 500 and Nasdaq, the Dow hasn’t returned to its pre-crisis high. The Dow closed at 29,551.42 on Feb 12, according to Bloomberg data.
Last modified: September 23, 2020 2:26 PM