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Dow To Replace DowDuPont In Dow Jones Industrial Average

S&P Dow Jones Indices said that Dow Inc. (DOW) will replace DowDuPont Inc. (DWDP) in the Dow Jones Industrial Average or DJIA effective prior to the open of trading on Tuesday, April 2, 2019.

The change follows DowDuPont Inc.'s announcement that it is splitting into 3 companies, with Dow Inc. being spun-off effective April 2. Dow Inc. will be headquartered in Midland, Michigan, and will operate as a materials science solution provider. A second agricultural chemical company is expected to be spun-off in June.

Replacing DowDuPont Inc. with Dow Inc. allows the Dow Jones Industrial Average to maintain its exposure to the Materials sector. Additionally Dow is anticipated to have a similar price weight to pre spin-off DowDuPont Inc, S&P Dow Jones Indices said.

S&P Dow Jones Indices said that Dow Inc. will be added to the S&P 500 prior to the open of trading on Tuesday, April 2. Dow will replace Brighthouse Financial Inc. (BHF), which will be removed from the S&P 500 effective prior to the open of trading on Wednesday, April 3. On the same effective date, Brighthouse will replace Pitney Bowes Inc. (PBI) in the S&P MidCap 400, and Pitney Bowes will replace Carbo Ceramics Inc. (CRR) in the S&P SmallCap 600.

S&P 500 and 100 constituent DowDuPont Inc. (DWDP) is spinning off Dow in a transaction expected to be completed on April 1. Effective Wednesday, April 3, post spin-off parent DowDuPont will change its Global Industry Classification Standard (GICS) sub-industry to Specialty Chemicals, and the spin-off Dow will be classified as Commodity Chemicals.

Brighthouse has a market capitalization more representative of the mid-cap market space, and Pitney Bowes has a market capitalization more representative of the small-cap market space. Carbo Ceramics is ranked near the bottom of the S&P SmallCap 600 and no longer representative of the small-cap market space.

Dow will be added to the S&P 100 prior to the open of trading on Tuesday, April 2. Dow will replace Halliburton Co. (HAL) which will be removed from the S&P 100 effective prior to the open of trading on Wednesday, April 3. Halliburton, which will remain in the S&P 500, is no longer representative of the mega-cap market space.

S&P SmallCap 600 constituent Trex Company Inc. (TREX) will replace Integrated Device Technology Inc. (IDTI) in the S&P MidCap 400, and Xenia Hotels & Resorts Inc. (XHR) will replace Trex Company in the S&P SmallCap 600 effective prior to the open of trading on Monday, April 1. Renesas Electronics Corp. is acquiring Integrated Device Technology in a deal expected to be completed soon pending final conditions.

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