Do DJIA Additions Mirror a Changing U.S. Economy?

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Sept. 11 (Bloomberg) -- Michael J. Wolf, founder and managing director at Activate, discusses what changes to the Dow Jones Industrial Average say about the U.S. economy and the future make-up of the exchange. He speaks on Bloomberg Television's "Bloomberg Surveillance."

Does it signal a shift toward a more goods economy?

Nike and the visa and goldman sachs represent not just services but the next wave and technology.

You've got nike which is really moving into smart devices that are about quantifying what we do in terms of fitness.

Visa is not just becoming a global payment company but also it will latch onto this whole growth in mobile.

The fact that i can make it tame it with my mobile phone will make a big difference.

Visa is at the front of that.

In silicon valley, it is intellectual and human capital and visa has 8500 employees which does not sound like a dow company.

Will we have a dow jones industrial average in 20 years which is great american companies with few jobs?

All of these next age companies are focused on fewer jobs.

They are more about using technology and efficiency.

I don't know what that means in terms of the future of the dow.

In the future of american industry, i think it means leaner, faster, and much more agile companies.

Art yahoo and visa friends of the american labor force?

They are enabling workers, enabling american workers.

They are making their own companies more efficient but also the rest of the company -- country more efficient.

What happens to the companies that are now in the dow?

Not as many etf's or mutual funds are tied to the dow.

For those coming in, fund managers who have them and their portfolio and etf's that mimic the dow will have to buy them to bring their weights up.

It may hurt the other companies leaving but their stock prices are so low, it will probably not have a major impact.

Scarlet fu pointed out yesterday that the companies that have left the dow over the years tend to see their stock prices go down.

Are they going down because they were kicked out?

This text has been automatically generated. It may not be 100% accurate.


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