Alphabet added to Dow Jones Industrial Average

What happened: On June 29, 2020, Alphabet Inc. (GOOG, GOOGL) replaced Verizon Communications Inc. (VZ) in the Dow Jones Industrial Average (DJIA), marking the index's 50th adjustment since its inception. This change was driven by S&P Dow Jones Indices, citing Verizon's "fatal flaws" and Alphabet's near-monopoly in internet search.

Market impact: This shift expands the DJIA's tech sector exposure, with Alphabet joining Apple and Microsoft. Verizon's removal may impact telecom stocks, while Alphabet's addition could boost tech sector ETFs and funds tracking the DJIA. Investors may rebalance their portfolios to reflect this change.

What to watch next: Alphabet's Q2 earnings, due July 28, will provide insights into the company's growth and potential impact on the DJIA. Additionally, monitor the DJIA's performance post-Alphabet's inclusion to gauge market sentiment towards this change. Lastly, keep an eye on any further DJIA adjustments, as the index approaches its 131st anniversary in May 2021.