Apple to join Dow Jones stock index
Apple will replace AT&T in the Dow Jones industrial average, the managers of the index have announced.
The switch will take place after the close of trading on Wednesday March 18, S&P Dow Jones Indices said.
Apple will start trading as part of the 30-stock Dow at the opening of trading the next day.
S&P Dow Jones Indices said it is making the move in response to a planned stock split for Visa, another member of the 119-year-old barometer of the stock market.
After its four-to-one stock split, Visa will wind up with a lower price. S&P said that would reduce the weight of the information technology sector in the Dow. Adding Apple will help balance out this reduction.
Unlike other stock market measures, the Dow weighs members by their prices, so a large change in the price of one stock can have a big effect on the overall index.
S&P said swapping Apple for AT&T will not alter the Dow's level.
The last big shake-up came in September 2013, when Goldman Sachs, Nike and Visa knocked out Alcoa, Bank of America and Hewlett-Packard.