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Apple to Dow Jones: What it means for the index
Apple moving to the Dow Jones industrial average will give the 30-company index more credibility, an analyst from BTIG said.
"The Dow is just not a big index fund anymore, so I think Apple is providing more credibility for the Dow, than the Dow giving credibility to some company that's being added to it," Walter Piecyk told CNBC's " Power Lunch " on Friday.
The tech giant is moving to the blue-chip index, effective March 19-replacing AT&T. Apple (NASDAQ: AAPL)'s stock was up about 0.50 percent in Friday afternoon trading, while the telecommunications company's shares were down 1.5 percent.
Read More Apple to replace AT&T in the Dow Jones Industrial Average
Piecyk added the move says volumes about AT&T and its sector. "Telecom is diminishing in the grand scheme of things," he said. "Verizon is distancing itself from AT&T (NYSE: T). AT&T is moving on to Latin America and Verizon is doubling down in the U.S."
U.S. stocks were down midafternoon Friday, with blue-chip shares shedding more than 250 points.
Disclosure: Neither Piecyk, nor his family nor his firm, own stock in any of the companies mentioned.
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