Hewlett-Packard Company (HPQ), Bank of America Corp (BAC): Sweeping Changes Hit the Dow Jones Industrial Average 2 Minute (^DJI) on a Day of Triple-Digit Gains

It will be replaced by Goldman Sachs Group Inc (NYSE:GS), which doubled earnings in its most recent quarter, while revenue jumped 30%. Goldman Sachs Group Inc (NYSE:GS)’s investments performed exceptionally in that quarter, and the stock has gained nearly 30% year to date — something Dow investors will appreciate when it joins the index.

Hewlett-Packard Company (NYSE:HPQ) is not in a much better place than B of A, thanks to its long-running turnaround. While the computer maker has shown signs of progress, it has also engaged in its own round of serious cost-cutting as it tries to stem falling sales. Hewlett-Packard Company (NYSE:HPQ) has cut more than 22,000 jobs through July as a consequence of its turnaround plan, and like B of A, the firm will need to show more momentum in its sales in the long term. Cost-cutting can only take Hewlett-Packard Company (NYSE:HPQ) — and its investors — so far.

For a company on the Dow, that’s just not enough. Hewlett-Packard Company (NYSE:HPQ) has lost its luster as the PC market changes, and the company’s inability to evolve in the face of the mobile revolution and the decline of the traditional PC sector has cost the company its spot on the blue-chip index.

The article Sweeping Changes Hit the Dow on a Day of Triple-Digit Gains originally appeared on Fool.com is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Bank of America, Goldman Sachs, Nike, and Visa. The Motley Fool owns shares of Bank of America, Nike, and Visa.

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