The Dow Jones Industrial Average, the most widely known barometer of the U.S. stock market, is making the first change in its lineup of 30 stocks in nearly four years, dropping Honeywell(HON) and Altria (MO) and adding Chevron (CVX) and Bank of America (BAC).
"Chevron was taken out because in 1999 oil was, what, 10, 12 dollars a barrel? It just wasn't the global presence that it is today," John Prestbo, Dow Jones indexes editor and executive director, said on CNBC. "That's why it's coming back in, it's the second-ranking company behind ExxonMobil."
Conversely, as Altria has divested itself of subsidiaries Kraft Foods and the looming move to cut Phillip Morris from its stable, the company has become less representative of the market, a goal the Dow index strives to meet.