Apple adds presure to the Dow Jones
Apple (AAPL) is dragging down the Dow on its first day in the famed average – probably not what investors expected.
Shares of the digital gadget maker are down 59 cents, or 0.5%, to $127.90 – adding pressure to the Dow Jones industrial average, which is off another 98 points, or 0.5%, to 17,974. The fact Apple’s stock is falling now that’s part of the Dow reminds investors of the Dow Curse.
Apple’s decline is counteracting the day’s gains by six stocks in the Dow, including Cisco Systems (CSCO), UnitedHealth (UNH), International Business Machines (IBM), Nike (NKE), Intel (INTC) andJohnson & Johnson (JNJ).
Even so it’s important to note, the Dow would be in even worse shape if AT&T was still in there. AT&T is down even more than Apple – falling 33 cents, or 1%, to $33.26.
By having Apple in the Dow – the Dow is actually 3.97 higher than it would be if AT&T was still included.
And the future is looking slightly better with Apple than without it – just probably not as much as you might think. The Dow has an implied 18-month value of 18,904 with Apple based on analysts’ 18-month price targets for all 30 stocks. That’s 0.2% higher than the 18,866 target if AT&T was still there.
So Apple may not be helping much today – but it appears it’s better than the alternative.
Source: USAToday Money – Apple actually HURTS the Dow!
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