Amazon is set to replace Walgreens Boots Alliance in the Dow Jones Industrial Average (DJIA), according to S&P Dow Jones Indices' announcement on Tuesday. 

According to CNBC, the S&P Dow Jones Indices manages the price-weighted measurement of 30 stocks, and this change goes into effect before the market opens on February 26.

With Amazon's inclusion, investors who bet on the average will now have increased exposure to the e-commerce giant.

Amazon to Replace Walgreens Boots Alliance in the Dow Jones Industrial Average

According to S&P Dow Jones Indices' statement, the decision to replace Walgreens with Amazon reflects the changing dynamics of the American economy.

The company said the change aims to increase consumer retail exposure and other business areas in the DJIA, aligning with broader shifts in business landscapes. 

The catalyst for this revision was Walmart's recent decision to execute a 3-for-1 stock split, resulting in a reduction of Walmart's index weight due to the price-weighted nature of the index. Despite this change, Walmart will continue to be listed on the DJIA.

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Uber Will Replace JetBlue Airways

Uber Technologies Inc. will also replace JetBlue Airways Corp. in the Dow Jones Transportation Average. This alteration seeks to expose the index to the burgeoning ride-sharing industry, as JetBlue's minimal weight in the index was attributed to its low share price.

As part of the adjustment process, the divisors utilized for calculating the indices from the components' prices will be modified before the opening of trading on February 26. 

This procedural step ensures that indices accurately reflect the portion of the US stock market it is designed to measure, preventing any distortion.

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