The Dow Jones Industrial Average will dump General Electric (GE) from the index on June 26th ending GE’s 110 year tenure as a component of the index. Teddy Roosevelt was president back in November 1907 when the industrial giant was added to the DJIA. For generations General Electric was a symbol of American industrial prowess. It manufactured products from light bulbs, to locomotives, to giant steam turbines.
Under the legendary and controversial Jack Welch, GE stock soared to all time highs in 2000. But the past 18 years have been a series of disappointments, ill-timed acquisitions, and underperformance. GE is selling off assets to pare down its massive debt and some analysts are calling for it spin off its more valuable units. The stock was the worst performer in the DJIA last year, down over 52%.
Walgreens Boots Alliance (WBA), the largest retail pharmacy in the US and Europe, will take GE’s spot in the index.
