“It may be by far the most valuable American company but Apple Inc still can’t get into at least one exclusive club – the 30-member Dow Jones Industrial Average,” Odrigo Campos and Chuck Mikolajczak write for Reuters.
“That may not be a problem for the company behind the iPhone and the iPad, after all Apple shares recently hit record highs,” Campos and Mikolajczak write. “It is, though, hurting those who tie their investments to the performance of the venerable Dow, which was first calculated in 1896 and is still probably the best-known stock index in the world.”
“Had Apple been substituted for 29 of the 30 Dow components last June, the index would have been higher,” Campos and Mikolajczak write. “So why can’t a company that so dominates the consumer and technology worlds, and whose share price has climbed an astounding split-adjusted 3,500 percent since January 2000, get into an index that has gained just 55 percent in that period?”
Read more in the full article here.
MacDailyNews Take: It is kind of nonsensical that Apple isn’t a Dow component, but that’s the Dow’s problem, not Apple’s.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]
The Dow Jones Industrial Average has been considered an antique for decades. Sorry News Corp.
That’s why Apple doesn’t care and more modern investors pay attention to the OTHER stock market indicators, such as the S&P 500. Boohoo News Corp.
Exactly, not much industry in the DJIA.
More like a museum of has beens
Original Dow Stocks
Central Pacific Railroad
Delaware, Lackawanna & Western Railroad Northern Pacific Railway (Preferred)
Central Railroad of New Jersey
Lake Shore Railway
Pacific Mail Steamship
Chicago, Milwaukee & St. Paul Railroad
Louisville & Nashville Railroad
Union Pacific Railroad
Chicago & North Western Railway
Missouri Pacific Railroad
Western Union
Dow Stocks in 1985
Allied-Signal
General Electric
Owens-Illinois Glass
Aluminum Company of America
General Motors
Philip Morris
American Can
Goodyear
Procter & Gamble Company
American Express Company
Inco
Sears Roebuck & Company
AT&T
International Business Machines
Texaco
Bethlehem Steel
International Harvester
Union Carbide
Chevron Corporation
International Paper
United Technologies Corporation
E. I. du Pont de Nemours
McDonald’s Corporation
U.S. Steel
Eastman Kodak
Merck
Westinghouse Electric
Exxon
3M
Woolworth
Aside from blips, there is no advantage for AAPL or Apple Inc to be in the big DOW. Stand apart.
AAPL is too big for the DJIA. If it were included, the index would basically be AAPL and the 29 dwarves, not an indicator of how industrial companies in general are doing.
-jcr
Wow, kinda stopped visiting MacDailyNews awhile ago because of the annoying ad servers. Just did so, and see things have only gotten worse. Way worse. These AdBlade ads are among the worst I’ve ever seen. Hasta luego, MDN. I am outta here for good.