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Exxon Mobil Dropped from Dow

The oil & gas company was the Dow's last original member.

Exxon Mobil joined the Dow Jones Industrial Average nearly 100 years ago and has maintained its place as a blue chip company since.

However, the famous stock index has announced that the oil & gas company -- its last original member -- will be removed in late August.

Apple’s recent stock split triggered a chain reaction that required the Dow to take on more tech companies, but Exxon’s market position has also changed in recent years.

In 2011, it was worth $400 billion, but its market value has shrunk to $175 billion since.

The oil & gas industry has faced significant struggles amid climate change concerns and after the exit of Exxon, the energy sector will make up just 2% of the Dow.

Exxon’s replacement will be business software company Salesforce.com.

The index also removed pharmaceutical company Pfizer and defense contractor Raytheon Technologies, while adding biotech firm Amgen and industrial conglomerate Honeywell.

According to Dow, the changes will help the index "add new types of businesses that better reflect the American economy."

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