Plunge Protection Team? You ain't seen nuthin' yet! : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Chevron and a bunch of others knocked off DJIA, and Microsoft, Home Depot, and a few others replace them.

I guess that's one way to keep the average up, eh? Replace the players!

-- Ron Schwarz (, October 26, 1999


Microsoft, Intel, Home Depot, SBC Communications added, effective Nov 1. Market already turning around, announcement is maybe 5 minutes old.


-- Ron Schwarz (, October 26, 1999.

Let the games begin!

-- Les (, October 26, 1999.

Transparency LOL

-- Ashton & Leska in Cascadia (, October 26, 1999.

Speaking of PPL's, too bad they don't have one for gold. Down to 296.00. Off about 35.00 in the past two weeks.

-- (, October 26, 1999.

9:45 ET Dow -115.88

-- now (, October 26, 1999.

Are you the same Ron Schwarz that tells women to "go get raped"?

Or is that just Usenet folklore?

-- You Knowwho (, October 26, 1999.

And the losers are [drumroll]...

Chevron, Goodyear, Sears, Union Carbide.

Seems like I heard some time back that Chevron 'fessed up to expecting to roll into the new year with significant stuff still unremediated.

If that's the case, and you knew it, and you didn't want it to pull the avg down, what would *you* do?

So, the next question: what's the remediation status for the three *other* deportees?

-- Ron Schwarz (, October 26, 1999.

Are you the same Steppin' Foole who got kicked off this forum, or is that just Web-board folklore?

-- Ron Schwarz (, October 26, 1999.

Their strategy may backfire. KABOOOOOOM.....


-- Owl (, October 26, 1999.

Is there a link for this news?


-- John Beck (, October 26, 1999.

Not that I can find as of this moment. Tune to CNBC, they're creaming their knickers over it now.

-- Ron Schwarz (, October 26, 1999.

When th egoing gets rough the ones in charge change the rules.

-- John Beck (, October 26, 1999.

There ya go, folx -- the "Keeper of the Dow" -- John Prescel (sp?) just said "we don't want to get embroiled in any y2k issues" when answering questions as to *why* the change.

And the *good* news is that yesterday, our chickens layed their first two eggs. I'm sure Foolio know exactly how they feel, but it's an important milestone for us nonetheless. Hopefully they'll ramp up production (so to speak) in short order.

-- Ron Schwarz (, October 26, 1999.

"If the average is stuck, change the average." -- Coif-boy on CNBC.

-- Ron Schwarz (, October 26, 1999.

So, when did the DJIA start using component stocks that don't trade on the New York Stock Exchange? Microsoft and Intel both trade on NASDAQ.

-- Paul Neuhardt (, October 26, 1999.

Here ya go Paul,

-- now (, October 26, 1999.

NEW YORK, Oct 26 (Reuters) - Dow Jones & Co. Inc. surprised Wall Street Tuesday with major changes to the 30 companies comprising the Dow industrials, including the addition of Nasday heavyweights Microsoft Corp. (NasdaqNM:MSFT - news) and Intel Corp. (NasdaqNM:INTC - news).

The other two new components are Home Depot Inc. (NYSE:HD - news) and SBC Communications Inc. (NYSE:SBC - news). Removed from the list are Union Carbide Corp. (NYSE:UK - news), Goodyear Tire & Rubber Co. (NYSE:GT - news), Sears (NYSE:S - news) and Chevron (NYSE:CHV - news).

The following are analyst comments:


``It's huge. It's going to be big to all the ones added obviously. This is great news. We've been waiting for what it was going to be. We wanted to see AOL, but this is very big and I expect a very big day for those added.''



``This is kind of a reflection of the obvious. The Dow has a lot of those old industrial names; now its going to reflect the growing importance of technology in the economy.''


-- ``It's about time. I guess the next question is: when are they going to add Yahoo! and America Online?''


-- ``It brings it (the index) up the date. The blue chip index had the risk of becoming a dinosaur index. It makes sense for it to reflect companies that have, in essence, become big blue chips companies. I am sure they will weight the new companies so that there will be no big jump, but the movement from here forward may change the index. The movement will be a better reflection of what the market is doing.''


-- ``Obviously, it is going to add a little more volatility as it tips it more toward technology - but just a little, not much. If the tech stocks do continue to outperform the market, the average will do better. But the Dow is still made up of 30 stocks and obviously the fact remains that it is not a great indicator of what the rest of the market is doing.''


-- "It looks to me like a little more technology orientation to it. One of the arguments that might be made is that the four that are coming out ... most have been dogs, and they're adding names that sort of have been doing better over the past few years.

"You could argue they're trying to replace four dogs of the Dow with 4 names with more leadership orientation. It will spark up the potential on the upside for the dow. The (new) names really reflect the new economy.

"You're eliminating a Sears that basically doesn't have the competitive edge against Wal-Mart (NYSE:WMT - news), names that were part of the old technology, bricks-and-mortar-type names.

"I view it as somewhat constructive. The problem might be that some of the names like Microsoft and Intel are considered to be pricey, even though they're at the leading edge of their industries.


-- ``It further recognizes the change in the economy and what appears to be a new era in the economy. Impact on stocks today is I think it's too soon to tell but it's certainly a step in the right direction.''

-- Sysman (, October 26, 1999.

I guess that answers my question.

Ah well, change is inevitable. Originally only 16 stocks made up the DJIA, not the present 30. I suppose it is a reflection not only on the "changing economy" as so many have put it, but also on the power that the NASD has achieved with their exchange. That Dow Jones is putting two NASDAQ stocks into the Dow 30 Industrials is a testament to the fac that the NYSE is no longer the King Of The Street.

-- Paul Neuhardt (, October 26, 1999.

Does anyone know how the old Dow was calculated. It would be interesting to keep a running comparison of the old vs the new for the next few weeks.

If Dow Jones does not want to "become embroiled in Y2K issues" it appears they are condeming the outed stocks from the average as overly exposed to Y2K risk.

While the above may be true, replacing 'older' industrials with newer high tech stocks may backfire as the older stocks sell at lower P/E ratios and may have greater tangible assets - might not the high tech components have farther to fall in a major downturn?

-- Bill P (, October 26, 1999.

The new stocks are much more overvalued than the ones they replaced. Thus, when the bear market get underway, the Dow will farther than it would have had the index not been changed.

-- Danny (, October 26, 1999.

Here's a link that describes how the Dow is calculated:

You add up all the stock prices, and divide by a "divisor", which changes periodically.

Hope this helps.

Jo Anne

-- Jo Anne Slaven (, October 26, 1999.

The latest round of the Wall Street Flim Flam.

The players have been predicting Dow 12,000 before year's end and they now need to make good on their predicition. They need more gold in them golden parachutes for their version of Y2K preparations.

They've got to artificially boost the Dow and this is the best method they've got. So they see Dow 12,000 before the end hits, How many followers are going to rush in behind the market manipulators and get their clocks cleaned by the big boys getting one last score?


-- Wildweasel (, October 26, 1999.

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