So Who Will Replace Kraft (KFT) in the Dow Jones Industrial Average?
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With stocks in sell-off mode again, traders have turned their attention to other matters. Namely the next addition to the Dow 30.
With Kraft (NYSE: KFT) splitting into two companies, it could be pulled from the popular stock average.
In a statement to CNBC this morning on the Kraft matter, John Prestbo, Editor and Executive Director of Dow Jones Indexes, said, "We are aware of the situation and we will watch it. It's a corporate action and it will take some time to come to fruition. We'll take action when appropriate."
Apple (Nasdaq: AAPL) is considered the favorite as the next Dow component, but with tech already widely represented in the average by Cisco (Nasdaq: CSCO), Microsoft (Nasdaq: MSFT), IBM (NYSE: IBM) and Intel (Nasdaq: INTC) it would seem unlikely they will replace Kraft, a food maker, with Apple.
Google (Nasdaq: GOOG) could also easily be added, and may skirt the "not another tech" problem since it could be classified an "Internet." You can also make a case about Amazon.com (Nasdaq: AMZN), which covers "Internet" and "Retail."
In keeping with the same sector, Pepsi (NYSE: PEP) could make a nice addition. Also, General Mills, Inc. (NYSE: GIS) or Kellogg Company (NYSE: K).
The Dow could also just keep the larger part of Kraft in the average.
Apple investors may be praying to keep their precious stock out of Dow, which has been viewed as the "kiss of death" in many instances (think CSCO, INTC, MSFT).
With Kraft (NYSE: KFT) splitting into two companies, it could be pulled from the popular stock average.
In a statement to CNBC this morning on the Kraft matter, John Prestbo, Editor and Executive Director of Dow Jones Indexes, said, "We are aware of the situation and we will watch it. It's a corporate action and it will take some time to come to fruition. We'll take action when appropriate."
Apple (Nasdaq: AAPL) is considered the favorite as the next Dow component, but with tech already widely represented in the average by Cisco (Nasdaq: CSCO), Microsoft (Nasdaq: MSFT), IBM (NYSE: IBM) and Intel (Nasdaq: INTC) it would seem unlikely they will replace Kraft, a food maker, with Apple.
Google (Nasdaq: GOOG) could also easily be added, and may skirt the "not another tech" problem since it could be classified an "Internet." You can also make a case about Amazon.com (Nasdaq: AMZN), which covers "Internet" and "Retail."
In keeping with the same sector, Pepsi (NYSE: PEP) could make a nice addition. Also, General Mills, Inc. (NYSE: GIS) or Kellogg Company (NYSE: K).
The Dow could also just keep the larger part of Kraft in the average.
Apple investors may be praying to keep their precious stock out of Dow, which has been viewed as the "kiss of death" in many instances (think CSCO, INTC, MSFT).
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