Dow Jones swaps Travelers, Cisco for Citigroup, GM

crAP ^ | 6/1/09 | Tim Paradis

[Crazieman]

The Dow Jones industrial average is adding Travelers Cos. and Cisco Systems Inc., dropping Citigroup Inc. and General Motors Corp.

The announcement Monday of the changes to the 30 stocks that make up the best-known barometer of Wall Street comes as GM enters bankruptcy protection, a move that was widely expected.

Dow Jones said Travelers, the property and casualty insurer and one-time division of Citicorp, would replace its former parent. Cisco, which makes computer networking gear, is filling the role left by GM after 83 years as part of the Dow.

The changes take effect June 8.

[quesney]

who cares?

[preacher]

The Dow goes up when you take out the losers & put in some winners.

[Grampa Dave]

The Dow goes up when you take out the losers & put in some winners.

Careful now preacher. You have alerted the masses to the Dow Con Game.

Now the losers GM and Citi have been removed from the Dow. Amazing how little publicity on this event. The focus in the media will be the increase in the DOW. The DOW has been a collection of good old boy companies. Some like GM/Citi should have been penny stocks. This will probably propel the DIA up, and the 0b0z0B0ts will be claiming the higher Dow is due to their messiah, the TOTUS.

http://www.thestreet.com/story/10507617/1/dow-watch-so-long-general-motors.html?puc=_tscrss

The Market Update Return to Article
Dow Watch: So Long, General Motors
Chris Nichols
06/01/09 - 09:27 AM EDT
Now It’s Cisco and Travelers
(At 9:15 a.m. EDT)

Two Dow changes as the new week arrives — GM (GM Quote) is getting replaced by Cisco Systems (CSCO Quote) and Citigroup (C Quote) will be removed to make room for Travelers (TRV Quote), a name that used to be part of the index.

Pretty much everyone expected the first one considering GM finally sought bankruptcy protection after basically the most telegraphed filing in history.

The second was a bit more of a surprise, but only because you could probably argue it was overdue, considering the government’s stake in Citi and the fact that the bank’s shares have been flattened by the banking crisis. Almost looked like Citi was going to stay in the club.

As noted last week, GM has been part of the DJIA continuously since 1925. The last change came in September when Kraft (KFT Quote) replaced another troubled company, AIG (AIG Quote).

In case you’re wondering, the market isn’t worrying much about GM. Futures say that stocks should open higher in New York.

[SunkenCiv]

Citigroup Stuck With Bernanke Offer Rival Banks Plan to Refuse
King Bloomberg’s News | 6/1/09 | Bradley Keoun
Posted on 06/01/2009 8:01:45 AM PDT by Crazieman
http://www.freerepublic.com/focus/news/2262167/posts

[KarlInOhio]

However the Dow usually hangs onto losers long after the companies have soured and picks up "winners" after they have made most of their gains, so it is doomed to lag the market on the whole.

[John123]

What happened was during the DJ insider meeting... someone asked... “How can we keep this party going?”

[jveritas]

Celebrating government nationalization plan and socialism the DOW is going up again using the fools 401(k) for another fake rally.

[jveritas]

Yep and the answer was “use the fools 401(k) money to keep the party going”.

[gathersnomoss]

Stopped “contributing” to the failed 401K plan many months ago.

[jveritas]

Same here.

[BattleHymn]

Ditto that. I am waiting to see if there is any sort of move to sieze what is left in my 401K by the messiah. If so, I will pull out what I can, and take the tax hit.

[justiceseeker93]

Just an inevitable bookkeeping move by Dow Jones that was in the works ever since GM and Citigroup took handout - er, bailout - money from Big Brother.