On June 8, Cisco was added to DJIA (Dow Jones Industrial Average) aka simply DOW. It is one the Wall Street’s oldest institution and respected barometer. Cisco now is a part of the elite group of 30 companies and it replaced the bankrupt General Motors Corporation. The other new addition was Travelers, a commercial insurer which replaced the CitiGroup which is in the process of restructuring.
What is Dow ?
Dow was started on May 26,1896 by financial reporter Charles Dow, in the name of Dow Jones Industrial Average. It is sort of a index that provides a quick guage of the state of the US market by measuring the performance of some of the US’s largest and stable firms.
Media reports on American financial market’s activity on any trading day include the include the closing price and daily rise or fall of the Dow Jones Industrials.
John Prestbo, Wall Street Journal editor and executive director of Dow Jones Indexes says “We thought it was a fitting replacement for General Motors because Cisco, with its products, is really the pavement on the information highway and it’s helping shape the 21st century much the same way automobiles shaped American culture in the 20st century”.
CEO of Cisco John Chambers said “This tremendous honor comes at an exciting time for Cisco—our 25th year as a company enabling efficiency, innovation, and prosperity for people and organizations worldwide,Our addition to the DJIA publicly highlights how we are transforming American culture and business as much as it credits our financial stability, strength, and transparency.”
Cisco is the 5th technology company added to the DOW list, along with Microsoft,HP,IBM and Intel.
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