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Non-Tech : Kirk's Market Thoughts

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Nov 7 9:30 AM EST

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To: Kirk © who wrote (2166)	10/21/2014 3:47:00 AM
From: ETF1	1 Recommendation Read Replies (1) of 26439

I wonder where the DOW would be today if they threw IBM out rather than HP last year..... Kirk, I'm going to take a stab at calculating this: "The current value of the Dow Divisor is 0.15571590501117 as of September 27, 2013. Every $1 change in price in a stock within the average, results in a 6.42 (1/0.15571590501117) change in the DJIA" en.wikipedia.org The Wall Street Journal online confirms that the Dow divisor stated above is still correct today: 30 INDUSTRIALS: (divisor: 0.15571590501117) online.wsj.com HP was removed from the Dow after the market close on Sept. 20, 2013. Let's assume that IBM was removed and HP stayed. 09/20/13 closing price of HPQ: 21.22 10/20/14 closing price of HPQ: 33.82 Dollar Change: 12.60 09/20/13 closing price of IBM : 190.02 10/20/14 closing price of IBM : 169.10 Dollar Change: -20.92 Difference between dollar change in IBM vs. HPQ: $33.52 33.52 * 6.42195 = 215.26 Dow points The Dow closed Monday 10/20/14 at 16,399.67 Had HPQ stayed and IBM left at the close on 9/20/13, the Dow would be at 16,614.93 The Dow would be 1.3% higher

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