After markets close today, Wednesday, Apple , (AAPL), will be added to the Dow Jones Industrial Average (DJIA). Apple has been reporting consistent record breaking earnings, even though earnings for oil companies on the index, like Exxon Mobil, (XOM), are expected to fall due to falling oil prices.
Some links on the story:
1. What Apple’s Addition To the Dow Means for Earnings. The WSJ’s MoneyBeat concludes that the DJIA is better with Apple than AT&T. By its calculations, if it had swapped AT&T for Apple two weeks ago, the DJIA would have been 700 points higher.
2. What Apple’s Dow addition will do to its stock. Jennifer Booton, writing for MarketWatch, wonders whether Apple will follow tradition: share prices rally when added to the DJIA but fall weeks after induction.
3. Will Apple Overcome the Curse of the Dow Jones Industrial Average? Simon Maierhofer writing for thestreet.com wonders if the curse of the DJIA will befall the world’s largest company. He reports that on average, all new components to the Dow Jones have an average loss of 2.5% one month after inclusion.
It is worthy to note that the Dow Jones Industrial Average is an exclusive club and only 30 companies are registered on it. That testifies to the current strength of Apple who kicked out AT&T (T).
nice post
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