– This is the script of CNBC's news report for China's CCTV on September 11, Wednesday.
Welcome to the CNBC Business Daily.
Over on Wall Street, the Dow Jones Industrial Average as you know it will soon cease to exist.
The benchmark blue-chip index is replacing Alcoa, Bank of America and Hewlett-Packard with new components Nike, Goldman Sachs and Visa, in its biggest shake-up in almost a decade.
The reason? The stock prices of the three companies leaving the Dow have fallen too low. The 30-stock index weights components by stock price rather than market value.
The changes will take effect when U-S markets open for trade on September 23rd.
So is time to be piling into stocks like Goldman? Here's one view from our analyst.
[Soundbyte on tape by JJ Kinahan, Chief Strategist, Thinkorswim Singapore]
Goldman Sachs is a position that I've had for a little bit. They just kinda of do everything right, and if you look at sectors overall, and believe that the US market is going to continue to recover, it's from the financial sector that we have to continue to do so, and I see Goldman Sachs as one of the leaders there. As you get closer and closer to this date when these stocks go in, I think you're going to see a lot of pressure, particularly on that last day of trade, the Friday before we rebalance. Heavy selling pressure on the three stocks coming out, heavy buying pressure on the three stocks coming in.
Li Sixuan, from CNBC's headquarters in Singapore.