On February 20, S & P announced that Amazon will replace Walgreens (NASDAQ: WBA) in the Dow Jones Industrial Average starting next week.。Amazon (NASDAQ: AMZN) shares up 1 in extended trading after news.3%, while Walgreens shares fell 3%。

S & P said joining Amazon would expand the exposure of consumer retailing in the Dow as well as other areas, a move driven by Wal-Mart's (NYSE: WMT) stock split plan.。

Since its inception in 1896, the Dow Jones Industrial Average has attracted the attention of ordinary investors and is an important indicator of the U.S. stock market.。Institutional investors typically compare their performance to the S & P 500。In addition to dominating online retail, the Seattle-based company has a major presence in cloud computing, entertainment and more.。

Quincy Krosby, chief global strategist at LPL Finance (NASDAQ: LPLA), said: "Amazon is almost a hybrid company that covers several categories and fully reflects the diversity of U.S. businesses represented by Dow Jones.。"

It is reported that this adjustment will take effect at the opening of next Monday。After the adjustment, Wal-Mart will remain in the Dow Jones Industrial Average, although its upcoming three-for-one stock split, which will take effect after Friday's close, will reduce the retailer's weighting in the index.。This weighting is based on the stock prices of its component companies, not their total market capitalization。

In addition, Uber Technology (NYSE: UBER) will replace JetBlue Airways (NASDAQ: JBLU) in the Dow Jones Transportation Average, providing exposure to the sector.。

This is Amazon's first entry into the Dow Jones Industrial Average since 2020, when SEFTSE (NYSE: CRM), Amgen (NASDAQ: AMGN) and Honeywell (NASDAQ: HON) replaced ExxonMobil (NYSE: XOM), Pfizer (NYSE: PFE) and Raytheon Technologies (NYSE: RTX).。

In 2018, Walgreens joined the Dow Jones Industrial Average, replacing General Electric (NYSE: GE).。