AAPL stock 20150306

Apple of California will replace AT&T in the Dow Jones Industrial Average after the close of trading on March 18, Reuters reported this morning. The famed Dow Jones Industrial Average is indicative of the overall market health so Apple joining and replacing the nation’s second-largest carrier on the index is certainly an encouraging sign for the economy.

Because the Dow is a weighted average of absolute stock price (unlike other indices), Apple was unable to join the Dow until its seven-to-one stock split, which took place in June of last year.

Apple holds a market capitalization of about $736 billion, making it the largest publicly traded company in the world. By contrast, AT&T has a market value of $176.5 billion.

“As the largest corporation in the world and a leader in technology, Apple is the clear choice for the Dow Jones Industrial Average, the most recognized stock market measure,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.

Due to Visa’s impending 4-for-1 stock split reducing the weighting of the Information Technology sector in the index, they have added AAPL to the 30-stock average in order to partially offset the reduction caused by Visa, according to the S&P Dow Jones Indices.

“In price weighted indices such as the DJIA, a large change in price of a high priced stock can have a material impact on sector representation in the index and this index change is designed to minimize that impact,” the organization said.

In addition to Visa, other members of the Dow Jones include American Express, Boeing, Chevron, Coca-Cola, Disney, Exxon Mobil, Goldman Sachs, IBM, Intel, JPMorgan and Chase, Microsoft and Verizon.

Source: Reuters

  • AppleNewsiDBIntentionallySkips

    Won’t expect a pro-Apple blog like iDB posting such negative story about Apple, so, warning, skip this post if you’re a die-hard Apple fanboy like Christian Zibreg. It’ll make you bah like the sheep you are, but here it is:

    In other news, Apple Pay is being used in fraudulent transactions involving stolen credit card data (phonearena. com/news/Apple-Pay-used-in-fraudulent-transactions-involving-stolen-credit-card-data_id66884).

    • Chindavon

      Someone needs a bandaid for their butthurt. Oh and the Apple Pay news being hacked or causing fraud….um read up on real news and dissect what’s really going on there son. Those headliners are for clicks and Apple Pay is not the cause.

      • AppleNewsiDBIntentionallySkips

        Oh such butthurt sheeple…is the Apple news too hard for you to swallow? Go get Tim Cook to shove it up your as5 then…it’ll be delightful to him.

      • Chindavon

        You’re going to need a bandaid the size of the Grand Canyon. …. Just to cover the top half.

      • Andy Copeland

        Exactly! Only people who don’t investigate or read themselves will believe what those headlines say

      • Kr00

        I think you’ll find that if you dig down, that “security expert” actually works for a rival company that’s developing their own payment system. Clickbait, which is why all credible blogs didn’t touch the story.

    • Shawn

      Why are you showing articles involving security flaws at Home Depot?

      • AppleNewsiDBIntentionallySkips

        The article was about fraudulent transactions being done with Apple Pay. Last time I checked, iDB claimed they post news about Apple and their competitors, but clearly, not all Apple news. Only the ones that are pro Apple.

      • Shawn

        Don’t see why they would. Anyone could steal a credit card and add it to apple pay. All you need are the numbers. Some banks require verification and then some do not. Seems more like it should be a psa to the banks to enforce verification.

  • AppleNewsiDBIntentionallySkips

    Lol, even Christian himself doesn’t want to know about that Apple news…ignorance is a bliss.