Cisco Added to Dow 30
Cisco Systems (CSCO) has been added to the Dow Jones Industrial Average, the 30-stock index that has become the best-known metric for the U.S. stock markets. Cisco will replace General Motors, which was removed from the index this morning after filing for bankruptcy protection. Travelers Insurance was also added, replacing Citigroup. The Dow 30 is managed by the editorial board of The Wall Street Journal.
Shares of Cisco were up nearly 5 percent in early trading. Companies that are added to major indices typically see a bump in their share price due to their increased visibility and mandatory buying from index funds that mirror key indicators.