Apple is replacing AT&T in the Dow Jones industrial average after the close of trading on Wednesday, March 18.
The switch will take effect at the opening of trading on Thursday, March 19, says S&P Dow Jones Indices LLC. The change was prompted by a 4-for-1 stock split for Dow-member Visa.
S&P Dow Jones Indices says the post-split adjusted lower price of Visa will reduce its weighting in the information technology sector of the index. Adding Apple will help to partially offset this reduction. In price-weighted indices such as the Dow, a large change in price in a stock can have a material impact on sector representation in the index. This index change is designed to minimize that impact.