Google (Nasdaq: GOOG) and Cisco Systems are the top contenders to join the Dow Jones Industrial Average if Citigroup and General Motors are booted off, Reuters reports.
Both Citigroup (NYSE: C) and General Motors (NYSE: GM) are trading below $2 -- although both are nearing that number after substantial gains Tuesday.
Other contenders to join the Dow, which has lost 25 percent of its value this year alone, include Goldman Sachs (NYSE: GS), US Steel (NYSE: X), Visa (NYSE: V) and Apple (Nasdaq: AAPL).
San Jose, Calif.-based Cisco (Nasdaq: CSCO) employs more than 4,000 people in the Raleigh-Durham area.
Bilibala's comment
• All the index funds will buy Google & Cisco and sell Citi & GM;
• Good impact in short term, stock price will rise due to more "buy";
• Bad impact in medium term, stock price will have higher fluctuation, as lesser # of stock supply in the market; also, Google may become a bearish target due to more hedge activities took place on its stock;
• No impact in long term, stock price will always and only follow GOOG's earning per share growth, not the overall market performance.
3.10.2009
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