Shares of Apple Inc. (AAPL) are up $1.63, or 1.37%, at $128.10 in early trading after S&P Dow Jones Indices announced this morning that the iPhone maker will replace telecommunication giant AT&T (T) in the Dow Jones Industrial Average after the close of trading on Wednesday, March 18.
“As the largest corporation in the world and a leader in technology, Apple is the clear choice for the Dow Jones Industrial Average, the most recognized stock market measure,” said in a statement David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
The changes will push the number of tech-related companies in the 30-member gauge to six. Apple, the world’s largest company by market value, joins Microsoft (MSFT), Intel Corp. (INTC), The Big Blue (IBM), Cisco Systems (CSCO) and Visa Inc (V). AT&T is being kicked out of the exclusive club after falling 4.5% in FY/14. The name has been in the index in some form since 1916, S&P noted.
Apple, which is currently worth $736.30 billion, is set to hold an event next Monday where it’s widely expected to give more details about its highly anticipated first wearable, the Apple Watch.