EDITOR'S NOTE
The Dow Jones Industrial Average is getting a makeover at the end of the month.
On Aug. 31, shares of Exxon Mobil, Pfizer and Raytheon Technologies will be replaced by Salesforce.com, Amgen and Honeywell International. These changes will mark the first time since 1928 that Exxon Mobil won’t be part of the Dow in any way. The stock was first included in the average nearly 100 years ago, when it was known as Standard Oil.
The shake-up comes on the heels of Apple’s 4-for-1 stock split, which also takes effect at the end of the month. In a statement, S&P Dow Jones Indices said the moves “help diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy.” 
Shares of the outgoing Dow members fell after the announcement while the newcomers rose. Salesforce gained more than 3% along with Honeywell, while Amgen jumped over 5%. Exxon Mobil dropped over 3% and Pfizer slid more than 1%. Raytheon was also down.
The declines by Exxon, Pfizer and Raytheon contributed to the Dow’s lackluster performance Tuesday along with Apple snapping a five-day winning streak. The Dow fell, ending a string of three consecutive gains. The S&P 500, meanwhile, eked out a fresh record high.
The removal of Exxon — the longest-serving Dow component — is a “sign of the times,” according to Raymond James, as the stock’s performance has faltered along with the rest of the energy sector. This changing of the times is made even more evident by the outperformance of tech and software shares in recent years.
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