Cisco addition increases technology clout in Dow

Jun 01, 2009 By PETER SVENSSON , AP Technology Writer

(AP) -- Miles per hour - out. Bits per second - in.

Dow Jones & Co. said Monday it would add Systems Inc., the world's largest maker of computer networking hardware, to the 30-stock industrial average, replacing General Motors Corp. The change takes effect June 8.

The automotive giant filed for bankruptcy protection Monday. Meanwhile, Cisco has been weathering the recession without major layoffs, and has kept acquiring companies to expand its technology portfolio.

Shares of San Jose, Calif.-based Cisco rose 78 cents, or 4.2 percent, to $19.28 in morning trading. Meanwhile the Dow Jones U.S. Technology Index was up 2.5 percent. Investment funds that track the Dow Jones industrials are now forced to buy Cisco shares to match the index.

The addition of Cisco reflects the increasing importance of information technology in the U.S. economy. IBM Corp. was added to the list in 1979. It was followed by Hewlett-Packard Co. in 1997, then Intel Corp. and Microsoft Corp. in 1999.

Intel and Microsoft were the first Dow components that are listed on the Nasdaq Stock Market rather than the New York Stock Exchange. Cisco will be the third.

The Dow Jones industrial average also includes the two largest telecommunications services providers in the U.S., AT&T Inc. and Verizon Communications Inc., which both are major Cisco customers.

Dow Jones also said Monday it will drop Citigroup Inc. in favor of Travelers Cos.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Twitter buys data analytics partner Gnip

add to favorites email to friend print save as pdf

Related Stories

Tech Shares Rise, Offset Worries About Housing

Mar 27, 2007

U.S. technology stocks rose on March 26, pulled higher by positive broker comments on companies such as Dell, but renewed signs of weakness in the housing market snapped a five-day winning streak for the Dow.

Brocade deepens IBM ties, steps up attack on Cisco

Apr 28, 2009

(AP) -- Brocade Communications Systems Inc. is deepening its ties with a powerful ally, IBM Corp., forging a new distribution deal for Internet routers and switches at a time when bigger rival Cisco Systems Inc. is straining ...

Cisco announces its first servers, riling rivals

Mar 16, 2009

(AP) -- Cisco Systems Inc. wants a bigger chunk of the corporate computing market, and plans to start selling servers in competition with old partners like Hewlett-Packard Co. and IBM Corp.

Cisco to supply Clearwire with WiMax devices

May 13, 2009

(AP) -- Clearwire Corp., which is building a nearly nationwide wireless data network, says Cisco Systems Inc. has agreed to make devices that can use that network.

Recommended for you

Technip, Heerema win third giant Angolan oil contract

4 minutes ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

Bitcoin exchange MtGox placed in administration: CEO

34 minutes ago

Failed Bitcoin exchange MtGox was Wednesday placed in administration by a Japanese court, with an order for bankruptcy expected to be issued soon, its administrator and chief executive said.

Yahoo sees signs of growth in 'core' (Update)

14 hours ago

Yahoo reported a stronger-than-expected first-quarter profit Tuesday, results hailed by chief executive Marissa Mayer as showing growth in the Web giant's "core" business.

Twitter buys data analytics partner Gnip

17 hours ago

Twitter says it has bought its data partner Gnip, which provides analysis of the more than 500 million tweets its users share each day—to advertisers, academic institutions, politicians and other customers.

User comments : 0

More news stories

Patent talk: Google sharpens contact lens vision

(Phys.org) —A report from Patent Bolt brings us one step closer to what Google may have in mind in developing smart contact lenses. According to the discussion Google is interested in the concept of contact ...

Tech giants look to skies to spread Internet

The shortest path to the Internet for some remote corners of the world may be through the skies. That is the message from US tech giants seeking to spread the online gospel to hard-to-reach regions.

Wireless industry makes anti-theft commitment

A trade group for wireless providers said Tuesday that the biggest mobile device manufacturers and carriers will soon put anti-theft tools on the gadgets to try to deter rampant smartphone theft.

Making 'bucky-balls' in spin-out's sights

(Phys.org) —A new Oxford spin-out firm is targeting the difficult challenge of manufacturing fullerenes, known as 'bucky-balls' because of their spherical shape, a type of carbon nanomaterial which, like ...

Gene removal could have implications beyond plant science

(Phys.org) —For thousands of years humans have been tinkering with plant genetics, even when they didn't realize that is what they were doing, in an effort to make stronger, healthier crops that endured climates better, ...