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article imageG.E. booted out of the Dow Jones industrial average on Tuesday

By Karen Graham     Jun 19, 2018 in Business
Boston - For the first time in 110 years, General Electric will not be a member of the elite Dow Jones Industrial Average. The announcement came on Tuesday after GE stocks continued to plunge.
Former General Electric transportation CEO Bob Nardelli told CNBC "It's a sad day." and it is sad in more ways than one.
When the industrial average was started in 1896, General Electric was one of the 12 original members of the exclusive club. It is also the only one of the 12 original members to survive today, 150 years later, as an independent company. So that is quite an accomplishment.
GE has been kicked out of the Dow before, but it has been a member continuously since 1907, according to the Boston Globe. The official date set for the change will occur on Tuesday, June 26, prior to the opening bell.
A Walgreens pharmacy
A Walgreens pharmacy
Via Flickr Creative Commons
Walgreens to replace General Electric
General Electric will be replaced by Walgreens Boots Alliance Inc. Dow Jones argues that the pharmacy chain is more representative of the consumer and healthcare sectors, making the index more representative of the economy and stock market.
"I don't think the worst is over," added Nardelli, who is also the former CEO of Chrysler and Home Depot. "[CEO] John Flannery has his work cut out for him. He's been there a year now, and I think time is not a friend when you're dealing with the challenges that he's facing," he said on "Fast Money."
GE was the worst performing stock on the Dow Jones industrial index, falling over 55 percent in the past 12 months. The new CEO, Flannery is trying to turn the multinational company around - and this move may include some spinoffs and sales of some of the company's portfolio.
In a statement about the Dow move, the company said, "We are focused on executing against the plan we've laid out to improve GE's performance. Today's announcement does nothing to change those commitments or our focus in creating a stronger, simpler GE."
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