“Since 1896, when the Wall Street Journal’s first editor and co-founder, Charles Dow, compiled a portfolio of bellwether industrial stocks, the Dow Jones industrial average has sought to reflect the changing U.S. economy,” Roben Farzad reports for Businessweek. “The benchmark has sometimes been slow to keep up with the times. The Dow booted Woolworth for Wal-Mart (WMT) in 1997 and didn’t add Microsoft (MSFT) and Intel (INTC) until 1999. Even so, the 30-member index remains the most widely recognized measure of the market.”
“Today the Dow is notable for one giant omission: Apple (AAPL), the world’s leading tech stock. With a market value of $307 billion as of June 14, the maker of iPhones and Macs is the second largest company in the U.S., behind ExxonMobil (XOM), a Dow component, and almost as large as Microsoft and Intel combined,” Farzad reports. “‘Apple should be in the Dow,’ says Paul Hickey, of Bespoke Investment Group in Harrison, N.Y. ‘Just as there used to be a General Motors (GM) vehicle in nearly every American driveway, there’s now an Apple product in practically every American household.'”
Farzad reports, “Apple’s absence, says Hickey, has deprived the Dow of 1,000 points… So why hasn’t Apple joined the club that includes JPMorgan Chase, Kraft (KFT), Caterpillar (CAT), and other household names? The answer lies in the peculiar way the Dow index is calculated.”
Read more in the full article here.
That’s what you get when you rely on geriatrics with acute dementia to make the choice
LOL… so true.
It is a shame the world has to wait for the entrenched baby boomers to bankrupt our generations before dying off and releasing their grip on forward progress.
Got daddy/mommy issues? Do they know their little snookums is foot-tapping impatiently in eager anticipation of their demise?
Baby boomers like Steve Jobs created the microcomputer revolution.
Your ballsack knocking off your knees making you crabby? Maybe you should wait for your nurse to change your diaper before you get on the “web thingy”.
I’m probably younger than you are.
But without the daddy/mommy issues.
Personally, I hope my baby boomer parents live for many, many more years.
My condolences to yours.
Probably? I’m probably twice the man you want to be, but we’ll never know.
Snore.
I resemble that remark. 🙂
Hehe. Lots of boomers take care of themselves and what not.
But everytime I see some fat ass oldie who obviously spent their lifetime abusing their body and using Medicare while voting against younger people including children getting some kind of healthcare it makes me sick.
lol, yep! it’s International Stupid Week at MDN yet again…as doesn’t know Shit From Shinolashow has so articulately posited.
Mm hmm. Care to expound?
Or are you just stupider yet offended? Der der?
Doesn’t Know Shit From Shinolashow: Don’t make me hit you with my Medicare check.
Plus 1
You should look into direct deposit grandpa 🙂
Dow is useless archaic index which does not reflect much at all. Google could top it since it has shares that cost more than half thousand dollars.
You think share price is the reason a stock is included in the Dow? You have the nerve to talk about how archaic it is, then prove you don’t know wtf you’re talking about in one single sentence.
“Apple’s absence, says Hickey, has deprived the Dow of 1,000 points…”
If AAPL is in and makes the DOW look good while leading institutional stocks and the rest of the market are taking a dive, does that really give us a clear picture of anything? I find the S&P 500 and NASDAQ a much better gauge of the market than the DOW.
Also, if the Dow is supposed to give an estimate for how the market in general is doing, does it make sense to include Apple? Apple usually defies the conventional thinking that dominates the way other companies operate.
Stock. Stock. Shmuck.
Its about the software and the hardware. Greed is distracting the news pickers at MDM.
Since Apple is such an anomaly it only makes sense that they’re not lumped in with the “average” American bellwether business.
This is the only argument for a stock split that holds water. Dow index funds would be forced to add AAPL which helps keep a little floor under the stock price. That said, Apple doesn’t really need the Dow.
Apple may not be in the Dow,
but Corning is in the iPhone….
I fear Apple’s stock will lose several billion dollars over the next few days after failing to hit the magic number of 355.
Why Apple shouldn’t CARE if it’s in the Dow:
The Dow Jones Industrial Average is an antiquated joke from the last century whose time is past. How quaint.
The S&P 500 is considered the MODERN tool for accessing the daily health of the stock market.
So sorry Rupert Murdoch, you blithering psychopath.
“So sorry Rupert Murdoch, you blithering psychopath.”
???
Long explanation:
Murdoch = Owner of Dow Jones/Wall Street Journal. He is also the #1 proponent in the news media of disinformation. His idea of ‘news’, ‘fair’ and ‘balanced’ is whatever makes him %money$. That behavior, by definition, is psychopathic. It is the behavior of someone without a conscience or sense of personal responsibility.
OK, now I understand. You’re just grasping.
Couldn’t work Sarah Palin in there somehow?
Murdoch bought the Dow Jones less than 4 years ago, and this article is about how it applies rules. Did Rupert change those rules?
“That behavior, by definition, is psychopathic”
Actually, no it isn’t. Look it up.
I believe the term you are stretching to use is ‘sociopath’.
Yes, he did “change” the rules. By using the same method used to provide “news”, independent of reality. The act of “measuring” anything without any basis in fact, or any connection to reality is what this article is really about. The message is controlled, there is no “news” in Newscorp, the market is fake.
I realize you can’t be more vague
so can you try to be more specific…?
+100, ROFLMAO
“Faaaaaaaascinating.”
-Spock