June 28, 2018 / 8:53 PM / 5 months ago

Walgreens debuts as dog of the Dow

    By James Thorne
    June 28 (Reuters) - The debut of Walgreens Boots Alliance
        into the Dow Jones Industrial Average Index this week
marks the worst performance of any new entrant in the past 10
years, a Reuters analysis shows.
    The announcement that Amazon.com Inc          would acquire
online pharmacy PillPack sank shares in Walgreens and other drug
retailers on Thursday.             
    Walgreens shares were down more than 11 percent in the three
days after the company replaced General Electric Co        in
the index on Tuesday.             
    The No. 2 U.S. pharmacy chain by market cap lost 9.9 percent
on Thursday, becoming the day's biggest loser of the 30 stocks
that comprise the Dow. It trimmed more than 44 points off the
index, which shrugged off early losses to close the day up 98
points, or 0.4 percent. 
    GE shares have risen more than 8 percent since the company
was dropped from the Dow, giving it the best three-day
performance among those that recently left the index.
    GE left the Dow with the lowest share price and least amount
of influence in the index, which is derived from an average of
stock prices among constituent companies.
    GE said on Tuesday that it would sell its oil-services firm
Baker Hughes          and spin off its healthcare business,
leaving a slimmed-down company focused on jet engines, power
plants and renewable energy.             
    Eight of the 11 most recent companies to join the Dow have
seen share prices decline in the three days following a debut.
    The second worst performing entrant was Mondelez
International Inc         , which saw shares fall 6.8 percent
after joining the index in September 2008 when it replaced
American International Group Inc        . 
    See the attached graphic in related content for the
three-day share price performance for companies following a Dow
debut in recent years. tmsnrt.rs/2Kr8hJk

    
 (Reporting by James Thorne
Editing by Marguerita Choy and Alden Bentley)
  
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