UnitedHealth Replaces Kraft in Dow Jones Industrial Average
By Rita Nazareth - Sep 14, 2012 9:35 AM ET
UnitedHealth Group Inc. (UNH) will replace Kraft (KFT) Foods Inc. in the Dow Jones Industrial Average, the first change to the 116-year-old U.S. stock benchmark in three years, according to S&P Dow Jones Indices.
Kraft, the world’s second-largest food company, will be removed from the Dow average after deciding to spin off its North American grocery business on Oct. 1. UnitedHealth, the biggest U.S. health insurer, will rank 15th among the 30 stocks in the price-weighted Dow. The change goes into effect at the opening of trading on Sept. 24, S&P Dow Jones Indices said.
Kraft’s spinoff reduces its market share and makes it less representative of large U.S. companies, according to the statement. The Northfield, Illinois-based company had been in the Dow since September 2008, when it replaced American International Group Inc. (AIG), S&P Dow Jones Indices said. UnitedHealth was chosen because its represents the growing importance of health-care spending to the U.S. economy, according to the index company.
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