Tuesday, September 20, 2011

Is Apple Really Ready to Move to the Dow Industrials?

The day could be drawing nearer for Apple’s long-awaited ascension to the big time: The Dow Jones Industrial Average, according to the CNBC.

Market chatter intensified Tuesday that the tech giant could soon become the bluest of the blue chips, complete with its $420 a share price that would give an immediate boost to the struggling Dow. Some speculated that the market rally was fueled by the Apple rumors. While the Apple-to-the-Dow talk has been floating for years, the stocks’ regard as the ultimate safe-haven play has heightened the speculation.

For many traders, the move is a natural. “It’s one of the biggest companies in the US, it seems like it would be reasonable to have it in the Dow,” says Philip Silverman, managing partner at Kingsview Management in New York. “The Dow is not necessarily just industrial companies these days, it’s supposed to be a representation of the very large bluechip companies. Apple is the best company we’ve got….”

Read more at http://www.cnbc.com/id/44597744

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