At Long Last, Dow Gets a Taste for Apple

Apple fans may soon be flocking to stores to pick up an Apple smartwatch.

Apple fans may soon be flocking to stores to pick up an Apple smartwatch.

David Geffen, REUTERS

 
NEW YORK (Reuters)—Apple Inc (AAPL.O), the largest U.S. company by market value, will join the Dow Jones industrial average .DJI, replacing AT&T Inc (T.N), in a change that reflects the dominant position of the iPhone maker in the U.S. consumer economy.

The decision to nudge aside AT&T, which has been part of the Dow for the better part of a century, is a recognition of how communications and technology have evolved. It’s also a marker of Apple’s transformation, from a struggling company with a small, fervent following two decades ago, into the nation’s predominant consumer tech company.

“This is a sign of the times, and it might get everyone to look at the Dow more than they have been,” said Richard Sichel, who oversees $2 billion as chief investment officer at Philadelphia Trust Co. “It would be difficult to pick any 30 companies that would cover the entire economy, especially compared with theS&P 500, but it does give the Dow more credibility.”

 

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