Dow Changes Costing Investors as Goldman Sachs, Visa Fall

Change, it’s been said, doesn’t cost a thing. Try telling that to investors today.

Associated Press

On September 10, S&P Dow Jones Indices announced that it was removing three stocks from the the Dow Jones Industrials and replacing them with three others. Out went Alcoa (AA), Bank of America (BAC) and Hewlett-Packard (HPQ), while Goldman Sachs (GS), Visa (V) and Nike (NKE) would now be able to call themselves proud members of the blue-chip index.

Those changes went into effect today, and they’re already having a big impact on the blue-chip index’s performance–and not a pleasant one. While both Goldman and Bank of America are having tough days, Goldman’s 2.2% drop to $165.99 has cost the Dow 29 points, while Bank of America’s 1.9% fall to $14.15 would have been worth just 2.1. Visa’s 0.4% drop to $198.06, meanwhile,  has hit the Dow for 6.1 points, while dearly departed Alcoa has gained 0.5% to $8.33, which would have been worth 0.3 point to the blue-chip index. Nike gas fallen 0.6% to $68.99, while Hewlett-Packard is little changed.

Goldman’s drop is having by far the biggest impact on the Dow today and it’s no wonder investors are souring on it and other financials today. The Financial Times reported that Citigroup (C) has seen a big slowdown in its trading revenue, an event that might have been foreshadowed by when Jefferies reported a big drop in bond trading on Sept. 17. Investors are clearly betting that it’s not the only one. Not only has Goldman fallen, but Dow component JPMorgan (JPM) has dropped 2.1% to $51.71.

The Dow Jones Industrial’s have fallen 0.5% to 15,375.35 today at 11 a.m.