S&P Global Index Unit Swaps Verizon for Alphabet, Keeps Honeywell; Survey Shows 2008-Style Layoffs
SPGI•S&P Dow Jones Indices will swap Verizon for Alphabet and rename Honeywell International as Honeywell Technologies on the Dow Jones Industrial Average effective June 29, with an adjusted divisor to prevent index distortion. A June survey shows factory job cuts at the fastest pace since 2008, highlighting deep manufacturing weakness.
1. Index Constituent Changes
The Dow Jones Industrial Average will see Alphabet replace Verizon Communications and Honeywell International will be renamed and remain in the index as Honeywell Technologies following its aerospace spin-off, effective June 29.
2. Divisor Adjustment
S&P Global will implement a divisor adjustment before trading opens on June 29 to neutralize price differences from the index swap and maintain continuity in the DJIA’s level.
3. Manufacturing Layoff Survey Results
A June factory survey shows job cuts running at the fastest level since 2008, indicating significant weakness in factory employment and production trends.
4. Implications for S&P Global
These index adjustments highlight S&P Global’s role in managing benchmark transitions, while the surge in manufacturing layoffs could drive demand for its economic data and analytics services.
