The average was last reshuffled in September, when UnitedHealth Group Inc. replaced Kraft Foods Inc., which spun off its North American grocery business.
Alcoa, the largest American aluminum producer, is being removed after plunging more than 80 percent since its 2007 high and seeing its debt-rating cut to speculative grade this year -- making it the second junk-rated Dow Jones Industrial Average company in at least three decades. Trading around $8, it has the smallest influence on the average.
Monica Orbe, a spokeswoman for Alcoa, was not immediately available to comment.
Hewlett-Packard, which took an $8.8 billion writedown related to its acquisition of Autonomy Corp. in November 2012, has declined for three straight years, and at about $22 is the average’s third-smallest stock. Its trailing 12-month revenue plummeted the most in more than a decade last fiscal quarter, according to data compiled by Bloomberg.
Howard Clabo, a Hewlett-Packard spokesman, did not immediately respond to messages seeking comment.
AIG, Pfizer
Even with its 2012 gain and a 25 percent advance this year, Bank of America, the second-largest U.S. lender, remains more than 70 percent below its high of $54.90 reached in November 2006. Two people with direct knowledge of its plans said yesterday the company will eliminate about 2,100 jobs and shutter 16 mortgage offices as rising interest rates weaken loan demand.
In 2004, American International Group Inc., Verizon Communications Inc. and Pfizer Inc. were added to the Dow average, reflecting the growing importance of finance and health care to the U.S. economy and stock market. Eastman Kodak Co., International Paper Co. and AT&T Corp., the average’s three smallest companies by market value, were removed.