Apple (AAPL) is now a part of the Dow Jones Industrial Average. The stock officially became a part of the index at the start of trading Thursday morning.
Apple replaced AT&T on the Dow as of market close on Wednesday. Apple’s effect on the Dow’s daily performance is now official.
Apple’s spot on the Dow became possible following the company’s 7-for-1 stock split in June of 2014. Credit card issuer Visa’s 4-for-1 stock spilt, effective today, also helped make room for Apple’s stock, as its post-split price reduced the weighting of Information Technology sector in the index, as did Apple’s taking the place of AT&T.
“The DJIA is price weighted so extremely high stock prices tend to distort the index while very low stock prices have little impact,” said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices in a press release earlier this month. “Apple’s split brought the stock price down closer to the median price in the DJIA. The Visa split will reduce the technology weight in the DJIA and make room for Apple. Among the current DJIA constituents, AT&T has one of the lowest prices.”
The Dow Jones Average is viewed as an indicator for overall stock market performance in the U.S. Apple will account for 4.66 percent of the index, according to Howard Silverblatt, senior analyst of S&P Dow Jones Indices.
Other members of the Dow Jones include American Express, Chevron, Coca-Cola, Disney, Exxon Mobil, Goldman Sachs, IBM, Intel, JPMorgan Chase,Microsoft, and Visa.
Shares of AAPL opened the day at around $129.