The article discusses Uber’s inclusion in the Dow Transports index and its impact on the market. Here are three highlights from the article:
1. Uber is set to join the Dow Transports on Monday, which is the first change to the index since December 2021.
2. The Dow Transports index is not hitting historic highs and is about 7% below its last high in November 2021, raising questions about its relevance in today’s economy.
3. Uber’s inclusion in the S&P 500 and subsequent performance suggests a pattern known as the “S&P inclusion effect,” where stocks tend to outperform before inclusion and underperform immediately after.
In summary, the article explores Uber’s addition to the Dow Transports index, its performance in the market following its inclusion in the S&P 500, and the potential impact on the transportation sector. The focus is on how Uber’s unique position as a transportation company that mainly shuttles people, rather than packages, fits within the index.
Editorial content by Harper Eastwood
