Finally, the Dow Jones added Apple to its industrial average.
The announcement, made by the Dow on Friday, is not surprising, though long overdue.
According to the New York Times, “…no company approaches Apple in terms of raw value…analysts have predicted that the company could soon become the world’s first trillion-dollar company.”
So why is Dow adding Apple on its 30-company stock index now?
In a story critical of the Dow’s method of averaging stock prices of the 30 companies in its index, the Washington Post, calls the Dow “pretty meaningless.”
The New York Times comments, “…it’s a hint of the average’s antiquated construction that this was prompted by a stock split planned by Visa — a move with no real-world significance.”
The public appears to be pretty wary of trusting the Dow in the wake of their announcement, probably due to the fact that they keep showing up late to the party.
“The Dow Jones is such a backwards-looking list, I cringed when Intel and Microsoft were added,” says Kevin Landis, CIO of Firsthand Capital Management. “I’m cringing today.”
Photo Credit: Charlie Phillips via Flickr