Travelers and Cisco Replace G.M. and Citi in Dow Index

The Dow Jones industrial average is the latest Wall Street institution to be reshaped by the financial crisis.

Seven years after being spun off by Citigroup, the Travelers Companies is supplanting its former parent as a member of the Dow Jones industrial average. Cisco Systems, which makes computer networking equipment, is filling the role left by General Motors, which had been a part of the Dow for 83 years. G.M. was removed after filing for bankruptcy protection on Monday.

Travelers will help the Dow maintain the representation of financial companies. Citigroup was expected to be removed from the index as its share price tumbled nearly 87 percent since the beginning of 2008. Shares of Travelers, a property and casualty insurer, are down about 22 percent.

Citigroup is the second financial company to be dropped from the Dow after huge losses during the credit crisis and recession. Dow Jones removed the insurer American International Group in September after it received several multibillion-dollar bailouts that gave the government a nearly 80 percent stake in the company.

As of Friday, Citigroup accounted for less than 1 percent of the value of the index, which includes 30 stocks that make up the best-known barometer of Wall Street. The Dow is down 40 percent from its record high of 14,164.53 in October 2007.

http://www.nytimes.com/2009/06/02/business/02dow.html?ref=business

Travelers and Cisco Replace G.M. and Citi in Dow Index

Travelers and Cisco Replace G.M. and Citi in Dow Index

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