Food maker Kraft Foods kft will replace struggling insurer American International Group aig in the Dow Jones industrial average when trading begins Sept. 22, Dow Jones & Co. said Thursday.
In a statement, Robert Thomson, managing editor of The Wall Street Journal, said another financial company is not being added to the index because of "extremely unsettled conditions."
Kraft was chosen because there is no food maker on the DJIA, said Thomson, who oversees the makeup of the widely watched index. AIG is being removed as the company's poor health prompted the Federal Reserve to provide an $85 billion emergency bailout loan. Shares of the company have plunged 83% over the last three sessions as the company faces a liquidity crunch amid the continued downturn in the credit markets.
Stocks added to the DJIA index have no set pre-determined criteria but must be established U.S. companies that are considered leaders in their industries.
The 112-year-old index was last changed in February when two of the 30 stocks were replaced.