Printed from http://www.electronista.com

Google, Apple to enter Dow Jones index?

updated 05:15 pm EDT, Tue March 10, 2009

Google, Cisco to Dow Index

Google and Cisco are among the top companies being considered to be entered into the Dow Jones industrial average index, bumping GM and Citigroup, whose shares have recently dipped below $2 and threatened their status as blue chip stocks, or sure things in the investment world, says a Monday report. They are not alone, however, as Apple, US Steel, Goldman Sachs, Visa, Aflac and Northern Trust are other candidates, as chosen by Reuters. Likewise, analysts believe Citigroup and GM are just the most likely companies to be replaced from the Dow index. Four other stocks listed on the Dow have fallen to below $10.

The Dow Jones index is simply a "broad-based but investable measure of the U.S. stock market, intended for use as the basis of investment products," and as such has no direct affect on a company's share price, but does boost the prestige and visibility of its constituents. Also, there is disagreement about the index' relevancy in today's economic climate, with some asking if it should reflect the largest and best companies in the US or simply represent various industries as a broader picture of the US economy.

Why Apple is being placed on the list isn't specified, though the company in recent years has had significantly higher-than-average growth in the computer industry along with rapid development of its fledgling cellphone business. The company managed record quarterly performance at the end of 2008 despite the impact of the world economic crash and has typically been more financially secure than most of its larger competitors, who have been hit by plummeting business PC sales.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Crucial MX100 256GB SATA-3 SSD

While the price-per-gigabyte ratio for magnetic platter-based hard drives can't be beat, the speed that a SSD brings to the table for ...

Narrative Clip

With the advent of social media technology, people have been searching for new ways to share the events of their daily lives -- be it ...

Blue's Mikey Digital

Blue Microphones, a company that makes some of the most popular digital USB microphones among podcasters and musicians, has for some t ...

Sponsor

toggle

Most Commented

 
toggle

Popular News