Cisco Systems Inc announced on Monday its inclusion in the Dow Jones Industrial Average, replacing General Motor Corp which filed for bankruptcy in the morning, effective on June 8.
Cisco shares rose 3.5 percent to $19.14, while GM tumbled 4 percent to 72 cents after being halted.
We believe our inclusion in the Dow demonstrates not only Cisco’s role as a broad technology indicator, but how remarkably the Internet and networking have transformed the way businesses and consumers connect, communicate and collaborate. said Cisco in a statement.
The U.S. technology giant Cisco is a fitting addition because its communications and computer-networking products are vital to an economy and culture still adapting to the Information Age -- just as automobiles were essential to America in the 20th Century. said Robert Thomson, managing editor of The Wall Street Journal and editor-in-chief for all of Dow Jones.
GM ends its 83-year run as a component of the Dow Jones Industrial Average. GM was added twice, first for about a year and a half in 1915 and second on Aug. 31, 1925.