AT&T Inc. (NYSE:T) will be eliminated from the Dow Jones Industrial Average Index and Apple Inc. (NASDAQ:AAPL) will be added instead on March 19. This was a statement that the index managers at S&P issued. The Dow Jones barometer of the US stock market is 119 years old, and it has decided to maintain a balance between technology stocks and the other sectors by adding Apple.
Dow Jones Would Remain Unaffected Due To The Change
After the announcement by Apple of a stock split in June 2014, every shareholder received 7 new shares of the company. The price of the shares reduced to $100 from $700. According to the index managers, this change incorporating the elimination of AT&T Inc. (NYSE:T) from the index will not have any major impact on the Dow Jones. This move of the Dow Jones index managers to include Apple has been supported by market experts. This is because recently Apple has emerged as one of the most influential companies in the US. The presence of the company is being felt all over the world due to its state of the art products like iPhone, iPad, MacBook, Apple App Store and Apple Pay.
Facts Regarding The Move
Under the astute leadership of its CEO, Tim Cook, the company has provided great profits to its shareholders and touched an all-time high in 2014. This company would have the largest market capital on the Dow Jones index when it will be included in it. In the recent years, technology companies have become quite important to the United States economy. Companies like Google Inc (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT), Hewlett-Packard Company (NYSE:HPQ) and Facebook Inc (NASDAQ:FB) are playing major role in deciding the economy of the country based on new technologies. Once AT&T is eliminated from the Dow Jones index, Verizon will be the only telecommunications company in it.