Business
At Long Last, Dow Gets a Taste for Apple
David Geffen, REUTERS
NEW YORK (Reuters)—Apple Inc (AAPL.O), the largest U.S. company by market value, will join the Dow Jones industrial average .DJI, replacing AT&T Inc (T.N), in a change that reflects the dominant position of the iPhone maker in the U.S. consumer economy.
The decision to nudge aside AT&T, which has been part of the Dow for the better part of a century, is a recognition of how communications and technology have evolved. It’s also a marker of Apple’s transformation, from a struggling company with a small, fervent following two decades ago, into the nation’s predominant consumer tech company.
“This is a sign of the times, and it might get everyone to look at the Dow more than they have been,” said Richard Sichel, who oversees $2 billion as chief investment officer at Philadelphia Trust Co. “It would be difficult to pick any 30 companies that would cover the entire economy, especially compared with theS&P 500, but it does give the Dow more credibility.”
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