The Dow Jones Industrial Average announced Tuesday that General Electric would be dropped from the stock index.
The appliance giant will not be part of the illustrious index for the first time in 110 years. GE’s place will be filled by Walgreens Boots Alliance, owner of the drug store chain Walgreens. The S&P Dow Jones Indices, which oversees the Dow, said the change will occur on June 26.
“Walgreens is a national retail drug store chain offering prescription and non-prescription drugs, related health services and general goods,” David Blitzer, managing director of the index committee at S&P Dow Jones Indices, said in an announcement.
“With its addition, the DJIA will be more representative of the consumer and health care sectors of the U.S. economy. Today’s change to the DJIA will make the index a better measure of the economy and the stock market.”
GE was one of the original companies on the index when it launched in 1896. It has continuously been one of the 30 stocks on the index since 1907.
"We are focused on executing against the plan we've laid out to improve GE's performance," the company said in response to the Dow’s decision. "Today's announcement does nothing to change those commitments or our focus in creating a stronger, simpler GE."
GE had the worst performance of any stock in the Dow in 2017 and lost almost half of its worth from the end of 2016. This year, the company has shed nearly another quarter of its value.
Shares of the company dropped about 2 percent during trading Tuesday and another 1.4 percent following the Dow announcement after markets closed. GE stock was valued around $12.77 during after-hours trading.
Shares of Walgreens Boots Alliance increased over 3.5 percent in after-hours trading to $66.89.
By Barry Eitel in San Francisco