Apple to replace AT&T in Dow Jones industrial average

Krishnadev Calamur, NPR:

Apple is in. AT&T is out. That's the word from the Dow Jones industrial average this morning.

The tech giant will replace the telecom giant after the close of trading on March 18, the S&P Dow Jones Indices said in a statement. The change is effective March 19.

"The index change was prompted by Visa Inc.'s 4:1 stock split which is scheduled to be effective at the same time," the statement read. "The post-split adjusted lower price of Visa will reduce the weighting of the Information Technology sector in the index. Adding Apple to the index will help to partially offset this reduction."

On a related note, the Dow is a terrible index. Maybe more on that later.