Apple to replace AT&T in Dow Jones average

Apple is replacing AT&T in the Dow Jones industrial average after the close of trading on March 18.

The switch will take effect at the opening of trading on Thursday, March 19, says S&P Dow Jones Indices LLC. The change was prompted by a 4-for-1 stock split for Dow-member Visa.

S&P Dow Jones Indices says the post-split adjusted lower price of Visa will reduce its weighting in the information technology sector of the index. Adding Apple will help to partially offset this reduction. In price-weighted indices such as the Dow, a large change in price in a stock can have a material impact on sector representation in the index. This index change is designed to minimize that impact.

This story was originally published March 6, 2015 at 8:41 AM with the headline "Apple to replace AT&T in Dow Jones average."