AIG Removed From Dow; Kraft Added

Dow Jones, part of News Corp. , said the changes won't cause any disruption in the level of the index. The divisor used to calculate the Dow from its components' prices on their respective home exchanges will be changed prior to the market's open on Sept. 22.

AIG's replacement by Kraft is the second change to the Dow this year. On Feb. 19, Bank of America and Chevron took spots vacated by Honeywell and Altria. By comparison, only two changes were made to the component makeup of the Dow in the 10 years previous.

For the sake of continuity, composition changes are intentionally rare, said John Prestbo, editor of Dow Jones Indexes, "although this time change was forced by the effective nationalization of AIG and its very low stock price. There are no predetermined criteria for a stock to be added or deleted, though we intend that all components be established U.S. companies that are leaders in their industries."

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