Health insurer UnitedHealth Group Inc. (UNH) will replace Kraft
Foods Inc. (KFT) in the Dow Jones Industrial Average after the
close of business on Sept. 21, as the global snacks company begins
trading as Mondelez International Inc.
Standard & Poor's said the Dow Jones Averages Index
Committee believes Mondelez's reduced market capitalization and
projected lower percentage of revenue makes the company less
representative of the U.S. large-cap market space.
Kraft is separating into two publicly traded companies: the
global snacks company Mondelez and the North American grocery
business Kraft Foods Group Inc. The split is scheduled for Oct. 1.
Earlier this month, Kraft unveiled its strategies for the
companies, but the forecast for 2013 earnings fell short of
expectations.
Meanwhile, UnitedHealth, the biggest managed-care company by
revenue and membership, has seen its profits grow as the uncertain
U.S. economy caused many consumers to avoid hospitals and doctors'
offices in hopes of saving money. The company reported its
second-quarter earnings rose 5.5% as the health insurer's revenue
jumped 8%.
Write to Melodie Warner at melodie.warner@dowjones.com
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