IBM grip loosened in Dow Average with Visa, Goldman added

UnitedHealth, Kraft

The average was last reshuffled in September 2012, when UnitedHealth Group Inc. replaced Kraft Foods Inc., which spun off its North American grocery business.

Goldman Sachs shares have more than tripled since their 2008 low though they remain down more than 30% since hitting $247.92 in October 2007. Second-quarter earnings doubled as overall revenue rose 30%, helped by record fees for debt underwriting. It held the top spot among arrangers of global equity, equity-linked and rights offerings in the first half, according to data compiled by Bloomberg.

“We are pleased to join this historic and significant market benchmark, and remain dedicated to delivering value for our shareholders as a member of the Dow 30,” Michael DuVally, a spokesman, wrote in an e-mail.

Visa, which is categorized as an information technology company by S&P and financial services by Russell Investments and Bloomberg, sets interchange fees and collects money for credit card-issuing banks. The stock is up 22% in 2013 after rising three of the last four years and at more than $180 would vie with IBM for the Dow’s biggest weighting.

Nike, Alcoa

Shares of Nike have climbed every year since 2008. The world’s largest maker of sporting goods reported net income in the quarter ended May 31 of $668 million, up 22% from a year ago, as demand surged for running and basketball gear in its largest market, North America.

Alcoa, the largest American aluminum producer, is being removed after plunging more than 80% since its 2007 high and seeing its debt-rating cut to speculative grade this year -- making it the second junk-rated Dow Jones Industrial Average company in at least three decades. Trading around $8, it has the smallest influence on the average.

The company said in a statement that the move has no effect on Alcoa’s business strategy.

Autonomy Writedown

Hewlett-Packard, which took an $8.8 billion writedown related to its acquisition of Autonomy Corp. in November 2012, has declined for three straight years, and at about $22 is the average’s third-smallest stock. Its trailing 12-month revenue plummeted the most in more than a decade last fiscal quarter, according to data compiled by Bloomberg.

“HP remains confident that we are making progress in our turnaround,” Michael Thacker, a spokesman, said in an e-mail. “We have delivered financial performance in line with or better than our expectations throughout this fiscal year, and remain focused on delivering shareholder value.”

Even with its 2012 gain and a 25% advance this year, Bank of America, the second-largest U.S. lender, remains more than 70% below its high of $54.90 in November 2006. Two people with direct knowledge of its plans said yesterday the company will eliminate about 2,100 jobs and shutter 16 mortgage offices as rising interest rates weaken loan demand.

The index change “has no impact on our business or our strategy for providing solid returns to shareholders,” Jerry Dubrowski, a Bank of America spokesman, said in a statement.

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