Google-parent Alphabet and online shopping titan Amazon probably will never be members of the Dow Jones industrial average, even though they represent what has become the most dominant sector of the economy.
Josh Brown, CEO of Ritholtz Wealth Management and a CNBC contributor, questioned the choice of Walgreens:
It's not that there's anything wrong with Alphabet and Amazon from a fundamental sense. Instead, their problem is that admitting them into the storied 30-stock benchmark would be like putting an elephant on the other side of a seesaw from a poodle.
The "weight" problem in this case is the dollar value of the two stocks and the issue it would cause to an index that is calculated based on share price.
Inserting the two companies, each of which trade well above $1,000 a share, into the Dow would skew the index too far away from the 28 other companies.
"Amazon, Google, even Facebook are probably never going to see the inside of the Dow, just because of price weightings," said Nick Colas, co-founder of DataTrek Research. "Facebook at the margin could have been put in. But the worry is if it ends up being like Google, it will swamp the index."
The Dow is considered a price-weighted index. The higher a company's stock price, the more influence it has on the Dow's direction.
At present, Boeing, which opened Wednesday at $346 a share, holds about a 9.5 percent weighting on the index.