icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Exxon gets kicked out of the Dow Jones Industrial Average

Exxon gets kicked out of the Dow Jones Industrial Average
Exxon is being kicked out of the Dow Jones Industrial Average index, where it has had a place since 1928. The reason: the Dow needed to make space for other, more valuable companies – and Apple’s stock split, CBS News reports.

The change will be effective on August 31.

Exxon, which was the oldest member of the index for the last two years after Dow removed GE, has been one of the most valuable companies in the US and the world for decades. That is until Big Tech showed up and began changing the world, its stock reflecting this change by swelling market caps.

Also on rt.com India’s Reliance beats US giant Exxon to become world’s second-most valuable energy firm

When Apple recently passed the $2-trillion valuation mark for a few hours, it became the most valuable company in the world.

Meanwhile, Big Oil – and Exxon specifically – hasn’t been faring all that well. Energy, which featured solidly on the index and in people’s lives a few decades ago, is being booted out by technology – Exxon’s replacement on the DJIA is a software company, Salesforce.

And then there is the climate change narrative and the accusations that Exxon knew about it but did not do anything about it. And it is not doing anything about it still, according to critics, unlike European supermajors, which are all but racing towards renewables.

Meanwhile, the double blow from the Saudi price war and the pandemic hit the world's largest public oil company hard. Exxon reported two quarterly losses this year, blaming oil prices and the effect of the pandemic on oil’s fundamentals. It is reducing its production in the face of lower demand and adjusting its spending plans like its peers to weather the worst of the crisis.

In the end, however, it is just about its share price. At a little over $42 a piece at the time of writing, Exxon is just too cheap for the DJIA, cheaper than the only other remaining energy company on the index: Chevron. Chevron is trading above $82 per share.

This article was originally published on Oilprice.com

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts