Changes to members of the Dow Jones Industrial Average coming up.

<p>The last time the Dow made a change was in August 2020, so the removal of some companies and inclusion of others will be the first in nearly 4 years.</p><ul><li>the reshuffling is expected around the end of February. </li><li>Walmart is having a 3-for-1 stock split, to take effect when the market opens on February </li></ul><p>Based on current prices, lowering the retail giant's stock price by one-third would reduce its ranking in the Dow to 26th from 17th (the Dow is a price-weighted index, which means stocks with higher prices have more influence than lower-priced stocks on the index's overall price). The big drop for Walmart will impact the consumer staples sector, of which Walmart is a member, in the index and the managers (S&amp;P) will seek to balance this out.</p><p>-</p><p>I haven't any inkling on who is likely to be out and who in. Members of the DJIA must </p><ul><li>be in the S&amp;P 500</li><li>be domiciled in the US </li><li>meet other market-capitalization and trading-liquidity standards</li><li>can't be part of the transportation or utilities sectors, because those sectors are tracked by the Dow Jones Transportation Average DJT and the Dow Jones Utility Average DJU.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.