“In recent weeks, six stocks on the Dow have tumbled below $10 and on Friday Citigroup, once the world’s most valuable bank, sunk to 97 cents,” Deepa Seetharaman reports for Reuters.
“Analysts say Citigroup and automaker General Motors are most likely to be replaced. Despite billions in government aid, both trade below $2 and serve as symbols of Wall Street’s corporate excess,” Seetharaman reports. “The Dow has shed roughly 25 percent of its value in 2009, a drop that has prompted analysts to call for an update of an index that many say has been out-of-date for years.”
“‘I don’t have much interaction with Exxon Mobil, but I’m on Google 47 times a day,’ said Barry Ritholtz, chief market strategist of Fusion IQ in New York,” Seetharaman reports. “Exxon is one of the 30 stocks listed on the Dow. ‘Indirectly that means I’m interfacing with the plumbing of Cisco.'”
Seetharaman reports, “Other candidates include high-profile household names such as the world’s largest credit card network, Visa, or iPod maker, Apple.”
Full article here.