Did anyone notice that there was a change to the DOW components today? AT&T, Eastman Kodak and International Paper were dropped in favor of Verizon, Phizer and American International Group.

Not that this major shakeup is going to affect anyone out there, unless you happen to own any of these six stocks, but it interesting to see major old line blue chips spiraled out of the DOW in favor of newer guard financial giants. It would seem to be a big shift in focus, but it's not nearly as major as the last adjustment which saw the inlcusion of Microsoft and Intel, the first NASDAQ stocks to be raised to that level.

The DOW itself is something of an enigma. Its 30 companies represent a huge percentage of the market cap of all companies in the US, and its swings have massive sway over the economy in this country. But it's only 30 companies out of thousands in the US. People talk about the economy doing well if the DOW is up and vice-versa if it is down. Yet it is only thirty stocks. 30!

Also, if you add the share value of each stock together it doesn't come close to the 10,000 plus level that the DOW is currently qouted. I know there is some crazy formula that accounts for splits of some of these stocks that have been components for more than 50 years, but it is still oddly confusing.

Anyway, adios AT&T, Kodak and IP. Enjoy your retirement back into the S&P 500.