Apple Shows Dominance and Power in Tech on First Dow Day

Techies can now celebrate as the Cupertino-based tech giant has joined the Dow this March 19. The company only decided to participate following a "torrid run." That is just when the company's shares got up to 38% following its stock split in June. Prior to the 7-for-1 split, Apple saw its trade at around $650 per share. As of the moment, it is trading around more or less the $128-mark. Least to say, people can now observe Apple in the most prestigious stock market.

To establish the importance, the Dow Index refers to a specifically monitored group of 30 stocks generally considered as the ideal indicators of the of the market health of the United States. From these, Goldman Sachs is considered the most influential - this accounts for as much as 7% of the value of the index. Although Apple has been a massive company, it has been toying with a lower stock price because of the split. It also meant previously that it can only account to around one-fifth of Dow's most influential stock.

As if demonstrating the power of the company, once Apple joined Dow, it has become part of the top five of the 30-member index. That is based on the weighting including a Dow weighting share of 4.74 percent. Other top contenders on the list include some of the best and leading names in Corporate America: Goldman Sachs, IBM< 3M and Boeing. These are the only four companies have weights beyond Apple in the Dow.

Principal analyst of San Jose-based Enderle Group, Rob Enderle, shares: “This shows the increasing importance of tech. Technology is one of the main drivers of the U.S. economy...Tech is one of the primary sectors with which the U.S. retains a competitive advantage over the rest of the world.”

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