Change in the Dow Jones Industrial Average

The Dow Jones Industrial Average is adding another bank -- at a time when banking companies face their most severe threats in more than 15 years.

Starting Feb. 19, the 111-year-old average will add Bank of America Corp. and Chevron Corp. to its 30 component stocks, in an effort to better reflect the makeup of the broader market and economy. To make room it will remove an industrial company (Honeywell International Inc.) and a cigarette maker (Altria Group Inc.).

Bank of America will become the fifth financial company and Chevron the second oil company in the blue-chip average...

Whenever one change is made in the Dow's composition, The Journal's managing editor reviews the status of the other 29 stocks as well. In this case, Mr. Brauchli also determined that the Dow needed more representation among financial stocks and less among industrial companies, to reflect the composition of the economy and the market. The stocks chosen for the average are meant to be those of blue-chip companies with staying power as leaders in their businesses.

read the WSJ article