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HP, unable to catch a break, is dropped from Dow Jones Industrial Average

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For Hewlett-Packard(s hpq), the hits just keep on coming. Tuesday, the news is that HP, a stalwart of American business, was dropped from the Dow Jones Industrial Average. To be fair, it was not alone in this distinction: the Bank of America(s bac) and Alcoa(s aa) also got the boot.

In their places come Nike(s nke), Visa(s v) — which replaces HP — and Goldman Sachs (s GS). The Wall Street Journal characterized this as the biggest shakeup in a decade for the venerable 30-stock index.

The changes take effect after the market closes September 20.  As the Journal points out, HP has had its ups and downs in the last few years, but this week its shares were up more than 50 percent for the year. Generally, however, all three stocks have lagged the broader market in recent years.

HPQ Chart

HPQ data by YCharts

5 Responses to “HP, unable to catch a break, is dropped from Dow Jones Industrial Average”

  1. Esteban Cafe

    Just another sad day for all those HP employees who have been taking a beating from Carly through Mark Hurd, Leo Apocalypse, some interim no-names, and now Meg. I’m sure they’re asking, “Why couldn’t we have found Meg right away ?” While the jury’s out on Meg, she seems to be doing the right things…and she does not seem like a liar.

    If HP Mgmt can get past their sole, pure, refined, unmitigated, absolute adherence to Shareholder Primacy and focus once again on the customer and their employees, it could be yet again “Hewlett-Packard”–not Apple, not Google, both fine companies–but the doyen of Silicon Valley. For those who had the experience, it was the best place on earth to work. HP was what every company wanted to be.

    Yeah. I’m not holding my breath.

  2. davealbany

    NO! Lenovo is a Chinese company, it bought IBM desktop business a few years ago. It’s currently number two worldwide, but with China’s help I’m sure it will be number one soon. HP needs to trip it’s product line eliminate Compaq and focus exclusively on the enterprise market.