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"As Goes Apple, So Goes America" - Apple To Replace AT&T In The Dow
When all else fails...
- *APPLE WILL JOIN THE DOW JONES INDUSTRIAL AVERAGE, WSJ SAYS
Prepare for unknown craziness as the world's largest and most-owned stock will dominate another index (along with Goldman as we noted previously).
- *APPLE TO REPLACE AT&T IN DJIA AFTER CLOSE OF TRADING MARCH 18
- *INDEX CHANGE PROMTED BY VISA 4:1 STOCK SPLIT
- *S&P: ADDING APPLE TO INDEX TO HELP PARTLY OFFSET WEIGHTING CUT
The reaction...
And one analyst's view on why Apple should refuse...
Apple analyst Trip Chowdhry of Global Equities Research doesn't like this morning's news that the company is finally joining the Dow Jones Industrial Average.
Here is what Chowdhry said:
Apple joining Dow is extremely bad for Apple.... Apple Executive should refuse to join DOW - Joining Dow, takes the shine off the Apple and makes it a rotten Apple
Companies in Dow have historically symbolized companies which are boring, have zero innovation, complacent and are inching closer to irrelevance by the day....which is definitely not what Apple is all about
Questions for investors, have you seen any innovative company in DOW ... look at the Index, all are struggling to be relevant ... CSCO, IBM, MSFT....next step from Dow is total irrelevance and the possible death of the company... Apple is not a fit for DOW...entering Dow is only for the losing companies and not for highly innovative companies like Apple
Apple should just refuse to join the Dow Index...
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What will it do to the DJIA "divisor" which is really a multiplier now?
The DOW is price weighted, not cap weighted, so it matters less than it might.
More to the point, no trading vehicles are linked to the DOW, so it's mostly a show horse. Fun to watch but irrelevant.
Is your average falling ?
Simple just replace the numbers used to create that average and Wa-La instant all time high average.
They need to implement this in the school grading system. It will instantly make everyone in America a genius.
The Dow Jones 'Industrial' Average is the world's largest actively managed index.
I think the lesson here is clear folks. Market a shitty controlled product well enough to be the worlds greatest techno-fashion... then perform lots and lots of controlled stock buybacks to bouy the price of your stock.... then get a position in the DJIA.
I thought that was Government Motors.
"Go 'head, bite the big AAPL, don't mind the maggots! Uh huhhhhh."
Was this news supposed to have been released LAST Friday? Take a look at the 2 point rip in AAPL starting at 9:45 on 2/27.
But why is AT&T being replaced?
Because the carriers are past their peak. Data prices are dropping, devices are expensive, and the new FCC regs are going to damage all that extra fluff ATT ripped people off for. Roaming fees, long distance, data overages, international roaming, home phone, and internet access are all a race to the bottom. Google is opening their own network, watch for more price savagery. I can't wait.
Bingo..
And I see Firefox now has its own free video calling feature called "Firefox Hello powered by Telefonica"
Excuse me, what?
AT&T, after they bought up DirecTV, is the only company that can overall compete with Comcast who has the choke-hold on really fast broadband, especially for everything not super-dense agglomerations.
As we all know the new FCC regs are going to do everything except providing equal opportunity to internet content providers, so Comcast has a choke-hold on content too!
Doesn't work that way Stacker
The "divisor" is adjusted to match the closing price of the day prior to the switch
Decreasing the divisor further makes the DJIA more volatile for movement of any of its components.
Apple down=transitory.
This is unequivocably bullish.
WTFCGW? WTF Could go wrong?
This has to be BULLISH!
Robust!
So does this move goose the DOW, and conversely, put a hole in the NASDAQ?
There's the top for Apple. It's all down hill from here.
So, I guess that means we're all going to be making iJunk when we're in those FEMA camps ?
Bullish!
No FEMA camp for me.
sign of the top? like the AOL Time Warner deal?
Tomorrow's Dog's of the Dow, today.
very deceptive. stock in over-indebted T is moar representative of the current overall usa financial condition. However, the previous replacement of HON with C fits the bill quite nicely. The usa is exactly like to dow move to C in every way, moar fraud and debt. lower quality in general.
The 12 stocks that made up the original Dow Jones Industrial Average in 1896 were American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennesee Coal & Iron, U.S. Leather preferred, and U.S. Rubber.
I see your point;)
How long until TSLA and NFLX are added?
products manufactured in china compose the DJIA... a WTF moment...
ATT out? so just the weaker VZ to represent 'communications'.
aapl is 10% of nasdaq; 4% of sp500 now the Dow.
will this make the stock price of apple a national security issue?
now most indices can be 'influenced' with the options of one name.
God help the USA if the iwatch fails!
Biggest problem with the Apple watch - one day battery life because it takes so much juice to run that retina screen.
@Bastiat,
IIRC you had a friend get deathly ill from Dtap as I did when I was told I was getting merely a tetanus shot.
Check the ingredients out of these vaccines.
http://www.cdc.gov/vaccines/pubs/pinkbook/downloads/appendices/B/excipient-table-2.pdf
Yeah, he had some hospital time, lots of specialists, excruciating pain, could barely move one arm. At one point the assholes wanted to give him chemo, experimentally! Fortunately he declined. After almost 2 years, he's getting back to normal. How did you come out of it.
I had tetanus symptoms for 2 days. Within 2 hrs of receiving the vaccine, fever shot up to 104 & stayed with violent uncontrollable whole body tremors. At the injection sight which I took a pic, my arm was inflamed to the elbow. Once I could get out of bed I went back to the Dr. showed him the pic & demanded the vaccine manufacturer & lot number to which he obliged, but charged me for. Sanofi was the devil that made this poison. All he could do was shake his head not knowing what the hell to say. I had another allo doc say the vaccine was doing it's job & I needed it.
IMO, the med schools have been shanghai'd like everything else. They only know what they've been taught, which is maximization of downstream profits going mainly pharma/hospitals, not to mention human guinea pigs. Compartmentalization at it's finest.
I recovered after about 4 days, but who knows what kind of time baum they planted. I cannot believe they wanted to give experimental chemo! After my baptism by fire there's 3 reasons I'll ever see a Dr. again...broken, bloody or infected. Even infected is iffy after learning before the era of antibiotics, probiotics such as chlorophyll were used in surgery.
After personally hearing of medical horror stories (22 yr old, Chrone's/colostomy) ALL preventable, we live in nothing more than a medical mafia paradigm. I'm half way thru a book "A New Breed: Satellite Terrorism In America" that reads like your worst Freudian nightmare. I highly recommend it. Hitchcock couldn't have woven a better thriller. The Dr. (DO/Anesthesiologist) that wrote it is now being targeted by TPTB for writing it. They tried to destroy his career, murder him & his girlfriend, other doctors involved, electronic warfare, think (DC shipyard shooter) w/retired Lt. Colonel involved... Unbelievable. He barely stayed 1/2 step ahead of these serpents.
Ha, That's what I was thinking now too. Apple stock price will be an issue of National Security. Apple products are like carrying around the Eye of Sauron. NSA can't afford for Apple to tank.
How about the idea that the markets have been s high national security issue for some years? The interventions seem military at times, naked and bridal. What the hell, Rickards taught them how to do it.
WALL STREET BUCKET LIST COMPLETE.
Apple effectively controls the NASDAQ100 - 100 issues.
Apple will crush the Dow Jones - 30 issues.
Much easier for pig yellen to control market - just bid one stock.
Let's see that balance sheet you fucking fraudulent animal yellen!!!!!
I like to think of her as an ambulatory matzo ball.
AAPL in the DOW will mean a great deal of additional volatility.
We've never had an "industry" like it whose entire financial foundation is dependent on products well known for "form over function" and purchased by an almost religious devotion to a brand as a social beacon.
That emotional factor is unstable and will be reflected in AAPL's pricing.
So does that mean that AT&T is no longer boring, innovationless, complacent, and inching closer to irrelevance by the day?
That is not the case.... trust me...
Now China can control the main US stock index.
China shuts down the Apple plant and watch the company get hit hard.
It used to be "As Goes GM, So Goes America" but since the purchase of certain GM products will cause you to be incinerated, bypassing the cost of the crematorium...........................
so applie is 18% of XLK, the tech sector....yet create no technology; only use it to create consumer goods.
when you look up the stock it is in the 'consumer goods' category...but not in XLY...consumer discretionary would be the most appropriate.
Not a good sign for at&t when you are replaced by basically a Chinese manufacturer in disguise.....
With Jobs gone Apples days of inobation are most likely ober, as will be their product quality and profits, therefor they belong in the DOW with Microsoft et al.
This Chowdhry fella sounds like more of an Apple fanboy hipster doofus than Andrew Ross Sorkin.
How do you spell Dow? L.I.E.
The key point to remember is that the Dow Jones has become the popular major media gauge of the health of the economy. And this gauge is propaganda because it represents the volume of the transfer of wealth from the American middle class labor to the banks who then buy US equities whose exploding returns compete with the devalued purchasing power of the man on the street.
The Dow Jones has become the symbol of destroyed permanent reserves in America and the Las Vegas casino for the Fed-backed risk takers.
Remember this from Tyler 9/10/2013?
Dow Jones To Kick Out Losers From Index: Alcoa, Hewlett, BofA Out; Replaced With Goldman, Nike And Visa
“In what has become an unspoken tradition for the Dow Jones, which maintains its upward bias by kicking out underperformers and replacing them with the investor darlings du jour, we just learned that as part of its next three-for-three rebalancing, the first since 2004, the DJIA will kick out such recent losers as Alcoa, Hewlett Packard and Bank of America, and will be replaced with Goldman, Nike and Visa:
“What, no inclusion of Apple, Tesla or Netflix? Also, for those keeping track, there are now 10 ‘industrials’ in the 30 company index that make, well, nothing. And how soon until the entire DJIA becomes one daily rebalanced ETF, which has as constituents only stocks that have traded up 5% or higher on the prior trading day?”
“When Dow created his first Average (now the Transportation Average [1886]), he simply divided the total of all the prices by eleven (the number of stocks on the Average) to get his result.” -- Randy Befumo
Now, instead of a divisor being the number of stocks on the Average (30), the current Dow Divisor is 0.15571590501117 as of October 21, 2014 … It's no longer an average. An average is @sum divided by @count. Read this to see how they do the math. Then ask yourself, Is the Dow a definition of a fraudulent investing scam, a financial Ponzi Scheme?
https://drive.google.com/file/d/0B51-74tGswAXcTY0b3hxNlBUeGM/view?usp=sh...
Dr Benway is puzzled: “It's kinda strange. We force the market up with money printed out of thin air, destroying the market, then we pretend the ramped prices are ‘market prices’ and indicative of value.
“Also, prices are assumed to be ‘market prices’ even if a handful of holders hold 95% or more of the company. This is great for fund managers, as they can ramp these shares and then claim great performance based on unrealized gains.”
Tim Cook iGypsy backdoor index to rally short term ETF gains.
Huh huh huh...Beavith...he thaid "Tim Cook" then "backdoor" in the thame potht...huh huh huh...backdoor...tim cook...huh huh huh...
“As goes GM, so goes America” Down the fucking drain!
Shouldn't that be, "As Goes Apple, So Goes China"?