After weeks of speculation - Apple! Amazon! Nike! Toyota! -- all became clear today when General Motors Corporation's (NYSE: GM) exodus from the Dow Jones Industrial Average (DJIA) made room for... Cisco Systems, Inc. (NASDAQ: CSCO). While perhaps not as sexy a name as, say, Apple, Inc. (NASDAQ: AAPL), it does add one more tech name to the venerable 30-stock average. Wall Street Journal Managing Editor Robert Thomson released a statement noting that CSCO made the cut "because its communications and computer-networking products are vital to an economy and culture still adapting to the Information Age -- just as automobiles were essential to America in the 20th Century." So there's the connection!
And while they are tidying up, the folks behind the Dow will be kicking Citigroup Inc. (NYSE: C) to the proverbial curb and replacing it with Travelers Companies Inc. (NYSE: TRV). If this sounds familiar, it's because TRV used to be a division of Citi -- all comes full circle as the progeny replaces the parent.
GM's bankruptcy filling this morning ended the automaker's 83-year run as a member of the Dow. The changes to the Dow will become official next Monday (June 8).
Beth works for The Options News Network (www.ONN.tv), which provides daily options commentary. The above comments are not intended as trading advice.
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