Today change of Dow Jones Industrial

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GM was replaced by Cisco; Citi replaced by Travellers. Source: WSJ. (you may need to get the full article via Google).

Interesing part (for me), quote WSJ:

Why choose a tech company, Cisco, to replace an automaker?

We did not need another consumer goods company after adding Kraft Foods when we removed AIG. In looking around, we were struck by the fact that Cisco makes products that pave the Information Highway – computer networking equipment, things that enable high-speed data and video transmission, and so on. We saw Cisco helping the economy and culture adjust to the digital age, much as automobiles influenced economic and social changes in the 20th Century.

Well, why not Apple (AAPL) or Google (GOOG)?

Those companies certainly qualify as blue chips, but we chose Cisco this time.

My thoughts: despite its limitations such as only 30 stocks, price weighted, Dow Industrial remains the most well known market index in the world. The committee did a good job picking Cisco, the networking infrusture company, vs. Google (the Internet Yellow Page Co.), and Apple (the fashion computer/electronic Co.).

Site note: GM stock
GM stock closed at 75 cents last Friday. As it files bankruptcy today, the stock is worthless from fundamental. But speculators appeared defied by the fundamental, starting tomorrow (Tuesday) they will continue to play with the stock at pink sheet market, under ticker symbol GMGMQ. Note this is just like WAMUQ (formerly Washington Mutal, NYSE:WM), it’s really worth nothing, but some people like to play it until it goes zero.

Referece (NBR via PBS): The GM Bankruptcy Shakes Up The Dow


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