3 reasons Apple's watch will _ or won't _ change the game

SAN FRANCISCO — No one can argue that Apple has changed the way people live their lives. The company's iPod, iTunes, iPhone and iPad have shaken up music, phone and computer markets worldwide. Is the Apple Watch going to be able to do the same?

The stakes are big for Apple CEO Tim Cook: the watch is the first brand-new Apple product to be launched without legendary co-founder Steve Jobs. But the market is awash in smartwatches that have gained little traction. Here are three reasons the Apple Watch will finally move the needle in the smartwatch industry — and three reasons it might not.

WHY IT WILL CHANGE THE GAME

MORE FEATURES THAN RIVALS: Along with email, texts and phone calls, Apple says its watch will present news, health readings and other notifications in creative ways that can be read at a glance. It will have a heart rate monitor and accelerometer, and an internal motor that can signal the wearer with a subtle "tap" on the wrist. And Siri and Apple Pay will be built in. Apple is working with outside companies to create more apps; Cook has talked about using the watch as an electronic "key" for hotel doors or even cars.

A POWERFUL BRAND: The world's biggest tech company has a reputation for quality and a direct conduit to customers — it operates more than 400 retail stores around the world. And it has deep pockets to spend on advertising — it is showcasing the watch this month with a sleek, 12-page insert in Vogue and other fashion magazines.

APPLE'S TRACK RECORD: This wouldn't be the first Apple product that revolutionized a market where rivals had struggled to break through. Other companies made digital music players before the iPod, smartphones before the iPhone and even tablets before the iPad. Most of those products failed to catch on until Apple made devices so appealing they set new standards and created new demand, said Forrester Research analyst J.P. Gownder.

OR NOT

WHAT'S THE NEED?: Most smartwatches — including Apple's — only work with a smartphone nearby, so you can't swap one expensive gadget for the other. "What we've seen is that it's not obvious why people would want a smartwatch," says Gownder. A recent Forrester survey found some respondents didn't see a reason to buy one because they already owned a less-expensive fitness band or a full-featured smartphone (although it also found Apple fans ready to buy the new watch).

CONSUMERS NOT EXCITED: You can already buy smartwatches made by giant tech companies like Samsung, Sony or LG, or from a tech startup like Pebble, that track your heart rate, show you email and deliver other online services to your wrist. None of them have really caught on. Only about 5 million smartwatches were sold worldwide last year, according to market researchers at Strategy Analytics. By comparison, Apple sold 74.6 million iPhones in just the last quarter.

PRICE AND OBSOLESCENCE: Many of today's smartwatches sell for $200 or less. Apple plans to sell three models, starting at $349, but Piper Jaffray's Gene Munster predicts the average buyer will pay $550 for a watch and extra, interchangeable bands. Apple's high-fashion "Edition" model, made with 18-karat gold, is expected to cost thousands. While affluent consumers might pay that for a watch they can wear for years, or even hand down to their children, it's a lot of money for something that could become outdated if Apple releases a new model every year or so — as it does with smartphones.

Cook will make his case for the Apple Watch at a press event Monday, where he's expected to show off more features and apps. Expectations are high.

But even the iPhone didn't become a mainstream blockbuster in its first year, notes Creative Strategies analyst Ben Bajarin. Of the Apple Watch, he says, "people need to understand more about what this product is, and what it does, and I think that will evolve over time."

22.26 | 0 komentar | Read More

Rock Band 4 a PAX no-show

One of the most anticipated video games on the first day of PAX East's sold-out, three-day gig at the Boston Convention & Exhibition Center was one that wasn't there.

Cambridge-based Harmonix announced that it would be releasing Rock Band 4 for Xbox One and PlayStation 4 some time this year on the eve of one of the largest gaming events in North America. One of the largest crowds yesterday was around the Harmonix booth, queueing up to buy Rock Band 4 T-shirts, pins, posters and guitars, and clamoring for details they never received.

"The game exists, and any older songs (from previous versions of the game) will work with it," was all Aaron Trites, the company's manager of community development, would say about it.

None of this mattered to Jonathan Willis, 24, of Raleigh, N.C.

"They could bring back Rock Band 3 with a new set list, and I would still buy it," he said.

Willis has been playing piano since he was 8 and drums since he was 13 or 14, but unlike many of his contemporaries, he didn't care for Guitar Hero, the Rock Band series' highly successful predecessor.

"It felt too much like a video game and was too repetitive," he said.

When Rock Band followed in 2007, though, Willis was hooked. Colored notes would scroll down the console's screen, and he'd play them by pressing the corresponding colored keys on a scaled-down version of an electric guitar, while his friend did the same on the game's set of drums. It was the closest they had ever come to being rock stars, Willis said, and it was addictive.

Since then, the Rock Band games have sold more than 15 million copies, Trites said, and Harmonix has branched out into other music-themed games.

Two the company did have on hand yesterday for people to try were Amplitude, a game it raised $900,000 to develop on the crowdfunding site Kickstarter, and Harmonix Music VR, which is less a game than a kaleidoscopic, virtual reality acid trip set to the song of your choice.

"Harmonix for a while was one of the most important things about the game industry in Massachusetts," said Monty Sharma, managing director of the Massachusetts Digital Games Institute, or MassDiGI. "Now, with Rock Band 4 and Amplitude, they have a good shot at being the largest studio in New England."

22.26 | 0 komentar | Read More

Charger’s performance matches racy look

With menacing looks and an intimidating front grille, the 2015 Dodge Charger SXT Rallye AWD is an exhilarating vehicle to drive.

Scalloped body sides and a chiseled front end with LED fog lights and high-intensity discharge wrap-around headlamps, coupled with seamless racetrack taillights, make it exhilarating to look at, too.

Its style and features make competitors like the Chevy Impala and Ford Taurus seem, well, not as exciting.

All new for 2015, the Dodge Charger is quiet and relatively fuel efficient (18 mpg city/27 highway) as equipped with a robust 300-horsepower, 3.6-liter V6 24-valve engine. The Charger packs plenty of punch even if it doesn't have the optional 6.2-liter 707-horsepower Hellcat supercharged V8 engine — though it's easy to imagine what the Hellcat engine could do in this car.

The Charger's all-wheel-drive system handles both dry and wet roads like a champion and it even excels in snow. The 19-inch polished aluminum wheels and all-season tires keep this car in touch with the road. Other safety features like blind spot and cross path detection, lane departure warning, and advanced braking assistance help ensure safe arrival at your destination.

Dodge redesigned the interior of its Charger for 2015. The cockpit has a clean look with a 7-inch customizable gauge cluster. A new electronic shifter compliments the heated leather-wrapped steering wheel, which has stereo, phone and cruise controls.

The 8.4-inch touchscreen GPS and stereo controller connects with the 552-watt stereo to pump great sound through its 10 Beats speakers located throughout the cabin. The stereo receives satellite, Bluetooth audio, AM/FM and HD radio signals. The Garmin-based GPS maps are simple and easy to read. The voice guidance system is also top-notch. As any $40,580 car should, the Dodge Charger SXT has keyless entry.

Dodge's UConnect system makes it easy to establish a connection with your phone, and the speakerphone performed clearly. SiriusXM's travel link shows current gas prices, weather alerts, sports, and movie information.

Seating is incredibly comfortable in the Charger. The driver and passenger seats are eight-way adjustable with power controls. The Nappa leather sport seats are heated and ventilated, and have metallic leather accents with tungsten-accent stitching.

The cabin is roomy and has plenty of space in both the front and back seats. A power sunroof enhances the roominess. The trunk provides ample storage and has a pass through to the main cabin for oversized items.

The bottom line is that this Dodge will put a charge into any mundane driving task, yielding a thrilling driving experience.

22.26 | 0 komentar | Read More

US job market faces hurdles even with 5.5 pct. unemployment

WASHINGTON — Unemployment in the U.S. has dropped to a seven-year low of 5.5 percent — a level normally considered the mark of a healthy job market. Yet that number isn't as encouraging as it might sound.

While U.S. employers added a solid 295,000 jobs in February, and the jobless rate fell from 5.7 percent, it went down mostly because many people gave up looking for work and were no longer officially counted as unemployed, the government reported Friday. What's more, wage gains remained sluggish.

Those trends suggest that the job market, while improving rapidly, isn't quite as healthy as it looks.

That complicates the Federal Reserve's task of figuring out when the economy has strengthened enough to withstand higher interest rates. The Fed is considering a rate increase as early as June.

With Friday's report, employers have now produced 12 straight monthly job gains above 200,000. It's the longest such stretch since 1994-95.

The U.S. is easily outshining most other major economies. For example, the unemployment rate in the 19 countries that share the euro is 11.2 percent, or twice the U.S. rate.

The robust U.S. job gains appear to have convinced many investors that the Fed will soon raise the short-term interest rate it controls. Investors on Friday sold ultra-safe U.S. Treasurys, a sign that many anticipate a rate increase. The yield on the 10-year Treasury note rose to 2.24 percent from 2.11 percent.

And they dumped stocks. The Dow Jones industrial average plummeted 276 points in afternoon trading.

A 5.5 percent unemployment rate is typically consistent with what economists call "full employment" — when the proportion of unemployed people has fallen so low that employers must raise pay to find enough qualified workers.

Companies then raise prices to pay for the higher wages. And the Fed usually follows suit by raising its benchmark short-term rate to cool growth and ward off inflation.

But the scars of the Great Recession have made the process hazier and more complicated.

"5.5 percent doesn't mean what it once did," said Diane Swonk, chief economist at Mesirow Financial. Full employment "is always a moving target, and it has moved down."

Since the recession ended in June 2009, the percentage of adults working or looking for work has fallen to a 37-year low of 62.8 percent. It has hovered around the mark for most of the past year.

Economists calculate that about half that decline reflects the aging of the population as the baby boom generation retires.

But another factor is that many Americans have become discouraged about their job prospects and have given up looking. Those out of work aren't counted as unemployed unless they are actively looking for jobs.

That has helped artificially lowered the rate since its peak of 10 percent in October 2009.

Many economists also argue the economy can't be near full employment if wages aren't growing. And average hourly earnings rose just 3 cents to $24.78 in February from the previous month.

Megan Greene, chief economist at John Hancock Financial Services, noted that hourly pay fell in February from January in the construction and mining industries. Such figures will outweigh the falling unemployment rate in Fed chair Janet Yellen's mind, she said, and perhaps discourage a rate increase soon.

Yet many other economists expect the Fed will put a rate increase into effect in June or September.

The short-term interest rate is usually at 3 percent or 4 percent when the economy is at full employment. It is now at a record low of zero, and inflation is practically nonexistent.

Tim Hopper, chief economist at TIAA-CREF, said that if unemployment keeps falling and inflation starts to pick up later this year, "the Fed will be behind the curve if they haven't already started raising rates."

Nearly 3.3 million more Americans are earning paychecks than 12 months ago. That has boosted U.S. consumer spending and the broader global economy. Many leading exporters, particularly China, Germany and Japan, depend on Americans' spending for a chunk of their growth.

February's hiring gains were broad-based. Some of the industries with the biggest gains include mostly low-paid work: Hotels and restaurants added 60,000 jobs, retailers 32,000.

But higher-paying fields also added jobs: Professional and business services, which include accountants, engineers and lawyers, gained 51,000, construction 29,000 and financial services 10,000.

Growth slowed in the final three months of last year to an annual rate of 2.2 percent after roaring ahead at nearly 5 percent last spring and summer. But consumer spending rose, a sign demand remains strong.

Dave Long, chief executive of Orangetheory Fitness, said the improving economy has given a boost to his fast-growing exercise studio business. He opened the first location five years ago in Fort Lauderdale, Florida. The company now has nearly 200 sites in the U.S.

"As people have a little extra money ... it opens up their minds to spending a little more on a product like ours," he said.

22.26 | 0 komentar | Read More

Epic snows have meant economic woes across all industries

BOSTON — Ignore anyone who tells you snow is free.

Every work day lost during New England's historic winter has meant millions of dollars taken out of the regional economy.

IHS Global Insight, an economic analysis firm, estimates Massachusetts alone suffered roughly $1 billion in lost wages and profits, as storm after storm pummeled the region, delivering over eight feet of snow in roughly a month.

Retailers and restaurants were among the hardest hit, as customers held off on big purchases or chose to stay at home rather than enjoy a night on the town.

A survey released this week by Massachusetts business groups representing those and other industries reported sales dropped an average of 24 percent and payroll dropped about 7 percent among their small businesses members.

Car dealers and real estate agents complained the poorly-timed storms -- many of which hit on or around weekends -- were disastrous to business. And with the exception of the region's famed ski resorts, many New England hotels, transportation companies and other businesses in the travel and tourism trade say they've struggled too.

"January and February are always tough months for us because people just don't want to travel," said Christopher Crean, a vice president at Peter Pan, a Springfield-based long distance bus company. "But when you add in all the snow and cold and highway closures, that just compounds the injury. It's hard to make a profit."

Manufacturers, meanwhile, report they're just starting to catch up on nearly a month of lost productivity.

During the worst of the storms, assembly lines shut down, work orders were delayed or cancelled outright and treacherous roads and iced-over rail lines hindered transport of finished products.

"Not only were we losing sales on the front end of the storms, now we're paying a lot more on the back end to get product out," says Michael Tamasi, CEO of AccuRounds, a Massachusetts maker of shafts, valves and other parts for medical, defense, aerospace and IT companies. "We've been adding hours, stretching out the work day, working on Saturdays, whatever we need to do."

Business leaders say the storms, if anything, laid bare the shortcomings of two critical pieces of the regional economy: greater Boston's road and transit systems.

"We still have congested streets and longer commutes and that's meaning lost productivity," says Timothy Murray, president of the Worcester Regional Chamber of Commerce. "The system has really been no match for Mother Nature."

Economists expect the ripple effects of New England's storms will be felt nationally, but it's too early to say to what extent.

Doug Handler, chief North American economist at the Massachusetts-based IHS Global Insight, says the storms likely won't have the economic punch of last year's winter, when a "polar vortex" exposed large swaths of the country to subzero temperatures and snow. That weather phenomenon caused widespread economic disruptions. Estimates for its overall economic impact have been pegged at anywhere from $15 billion to $50 billion.

"This is much more localized and in a region that can handle it, to a degree," Handler said, acknowledging that parts of the South and Mid-Atlantic are also seeing snows this week, albeit nothing on the scale of what New England has seen this winter. "We're prepared for it in New England, whereas last year, some regions just weren't."

Indeed, U.S. employers added 295,000 jobs in February, exceeding expectations, the Labor Department reported Friday. Within that data, Handler noted the number of workers in nonagricultural jobs that were unable to work because of inclement weather was roughly on par with February's historical average.

Elsewhere, Autodata Corp reported U.S. car sales in February were up about 5.3 percent from January but still fell short of expected gains. Analysts predict lost sales should be made up as the weather warms; U.S. new car sales are still on track to hit their highest level in more than a decade.

Economists also expect many New England industries will recover most lost productivity.

The region's population centers are now largely built around hospitals, universities, and the financial, health care and information technology sectors — industries that are somewhat resilient to weather-related shutdowns. Many workers can work from home or simply spend more time in the office catching up. But even among those high skill industries, there are limits to what can be done to soften the blow of bad weather.

Many drugmakers, research labs and other large health care and biotech institutions maintained 24/7 operations through the storms, taking on overtime costs or covering hotel stays and other travel expenses that likely won't be recouped, industry officials said.

"There's certain research that you just can't stop," said Peter Abair, of the Massachusetts Biotechnology Council, which represents more than 650 biotechnology companies and academic institutions. "To stop a project midstream is very difficult. All your expenses go out the door. You have to start from scratch."

22.26 | 0 komentar | Read More

Hudson hardware store sold after 128 years in family

HUDSON  — A Hudson lumber and hardware store that's been owned by the same family for 128 years has been sold.

Lamson Lumber announced that it has been sold to Koopman Lumber, another family-owned business based in Northbridge with seven locations. Terms of the sale were not disclosed.

Co-owner Lona Lamson tells The MetroWest Daily News that the business was started by her great-grandfather in 1887. It originally sold ice.

Lamson says the business is thriving, with sales up 20 percent last year, but she and her sister are getting older and none of their children want to take over.

Koopman co-owner Tony Brookhouse says Lamson will stay in the same location with the same employees, but he plans on adding more services.

22.27 | 0 komentar | Read More

US adds a robust 295K jobs; jobless rate falls to 5.5 pct.

WASHINGTON — U.S. employers extended a healthy streak of hiring in February by adding 295,000 jobs, the 12th straight monthly gain above 200,000. It was the latest sign that the U.S. economy is further strengthening and outpacing other major economies around the world.

The U.S. unemployment rate fell to 5.5 percent from 5.7 percent, the government said Friday. But the rate declined mainly because some people out of work stopped looking for jobs and were no longer counted as unemployed.

February's robust job gain wasn't enough to boost wages by much. The average hourly wage rose just 3 cents to $24.78 an hour. Average hourly pay has now risen just 2 percent over the past 12 months, barely ahead of inflation.

Still, over that time, 3.3 million more Americans have gotten jobs. More jobs and lower gas prices have led many consumers to step up spending. That's boosting the economy, offsetting sluggish economies overseas and giving employers the confidence to hire.

The jobs figures provide "more evidence that the labor market is recovering rapidly, with employment growth more than strong enough to keep the unemployment rate trending down," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics. Falling unemployment "makes more acceleration in wages increasingly likely."

At 5.5 percent, the unemployment rate has now reached the top of the range the Federal Reserve has said is consistent with a healthy economy. That could make it more likely that the Fed will act soon to raise interest rates from record lows as early as June.

"This is quite a symbolic change that increases the pressure on the Fed to hike rates in June," said Paul Dales, an economist at Capital Economics said.

Indeed, after the jobs report was released Friday morning, investors sold ultra-safe U.S. Treasurys, a sign that many anticipate a Fed rate hike. The yield on the 10-year Treasury note rose to 2.18 percent from 2.11 percent before the report was issued.

The U.S. job market and economy are easily outshining those of other major nations. Though Europe and Japan are showing signs of growing more than last year, their economies remain feeble. The euro currency union's unemployment rate has started to fall, but at 11.2 percent it remains nearly twice the U.S. level.

The U.S. economy expanded at a breakneck annual pace of 4.8 percent in last year's spring and summer, only to slow to a tepid 2.2 percent rate in the final three months of 2014. Many economists estimate that growth is picking up slightly in the current quarter to an annual rate of 2.5 percent to nearly 3 percent.

Still, economists remain bullish about hiring despite the slowdown in growth. The fourth quarter's slowdown occurred largely because companies reduced their stockpiles of goods, which translated into lower factory output.

But companies focus more on consumer demand in making hiring decisions, and demand was strong in the October-December quarter. Americans stepped up their spending by the most in four years.

And though consumers are saving much of the cash they have from cheaper gas, spending in January still rose at a decent pace after adjusting for lower prices.

Mark Zandi, chief economist at Moody's Analytics, expects the economy to grow 3 percent this year, which would be first time it's reached that level in a decade. That's fast enough to support hiring of about 250,000 a month, he said.

22.27 | 0 komentar | Read More

Staples tops 4Q profit projections; strong dollar hits sales

FRAMINGHAM, Mass. — Staples slid to a loss in the fourth quarter as the company booked restructuring charges ahead of a huge merger and the strong dollar pressured sales, but it topped Wall Street's expectations for net income and shares rose in premarket trading Friday.

Staples, the nation's largest big box office supply chain, announced last month that it would spend about $6 billion to buy rival Office Depot Inc. It closed 169 stores in North America last year and plans to close a total of 225 locations by the end of 2015 as it ties up with Office Depot.

For the period ended Jan. 31, Staples lost $260.4 million, or 41 cents per share. A year earlier it earned $212.4 million, or 33 cents per share.

Staples said Friday that the current quarter included $410 million in impairment charges related to its Australia, China and South America businesses. The period also included $74 million in restructuring and other charges.

Excluding the charges and other items, per-share earnings were 31 cents.

That's a penny better than industry analysts had projected for the quarter, according to a survey by Zacks Investment Research.

The Framingham, Massachusetts, company posted revenue of $5.66 billion, which fell short of Wall Street forecasts. Analysts surveyed by Zacks expected $5.75 billion.

The strong dollar negatively impacted sales by about 2 percent during the quarter, the company said Friday.

Quarterly sales grew one percent excluding the impact of store closings over the past year and the strong dollar.

For the year, Staples Inc. had a profit of $134.5 million, or 21 cents per share. Its adjusted earnings from continuing operations were 96 cents per share. Revenue was reported as $22.49 billion.

The company expects adjusted earnings in a range of 16 to 18 cents per share during the first quarter of this year. Analysts polled by FactSet predict earnings of 17 cents per share. The company said it also anticipates sales to decline when compared with the prior-year period.

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SPLS at http://www.zacks.com/ap/SPLS

_____

Keywords: Staples, Earnings Report

22.27 | 0 komentar | Read More

3 reasons Apple's watch will _ or won't _ change the game

SAN FRANCISCO — No one can argue that Apple has changed the way people live their lives. The company's iPod, iTunes, iPhone and iPad have shaken up music, phone and computer markets worldwide. Is the Apple Watch going to be able to do the same?

The stakes are big for Apple CEO Tim Cook: the watch is the first brand-new Apple product to be launched without legendary co-founder Steve Jobs. But the market is awash in smartwatches that have gained little traction. Here are three reasons the Apple Watch will finally move the needle in the smartwatch industry — and three reasons it might not.

WHY IT WILL CHANGE THE GAME

MORE FEATURES THAN RIVALS: Along with email, texts and phone calls, Apple says its watch will present news, health readings and other notifications in creative ways that can be read at a glance. It will have a heart rate monitor and accelerometer, and an internal motor that can signal the wearer with a subtle "tap" on the wrist. And Siri and Apple Pay will be built in. Apple is working with outside companies to create more apps; Cook has talked about using the watch as an electronic "key" for hotel doors or even cars.

A POWERFUL BRAND: The world's biggest tech company has a reputation for quality and a direct conduit to customers — it operates more than 400 retail stores around the world. And it has deep pockets to spend on advertising — it is showcasing the watch this month with a sleek, 12-page insert in Vogue and other fashion magazines.

APPLE'S TRACK RECORD: This wouldn't be the first Apple product that revolutionized a market where rivals had struggled to break through. Other companies made digital music players before the iPod, smartphones before the iPhone and even tablets before the iPad. Most of those products failed to catch on until Apple made devices so appealing they set new standards and created new demand, said Forrester Research analyst J.P. Gownder.

OR NOT

WHAT'S THE NEED?: Most smartwatches — including Apple's — only work with a smartphone nearby, so you can't swap one expensive gadget for the other. "What we've seen is that it's not obvious why people would want a smartwatch," says Gownder. A recent Forrester survey found some respondents didn't see a reason to buy one because they already owned a less-expensive fitness band or a full-featured smartphone (although it also found Apple fans ready to buy the new watch).

CONSUMERS NOT EXCITED: You can already buy smartwatches made by giant tech companies like Samsung, Sony or LG, or from a tech startup like Pebble, that track your heart rate, show you email and deliver other online services to your wrist. None of them have really caught on. Only about 5 million smartwatches were sold worldwide last year, according to market researchers at Strategy Analytics. By comparison, Apple sold 74.6 million iPhones in just the last quarter.

PRICE AND OBSOLESCENCE: Many of today's smartwatches sell for $200 or less. Apple plans to sell three models, starting at $349, but Piper Jaffray's Gene Munster predicts the average buyer will pay $550 for a watch and extra, interchangeable bands. Apple's high-fashion "Edition" model, made with 18-karat gold, is expected to cost thousands. While affluent consumers might pay that for a watch they can wear for years, or even hand down to their children, it's a lot of money for something that could become outdated if Apple releases a new model every year or so — as it does with smartphones.

Cook will make his case for the Apple Watch at a press event Monday, where he's expected to show off more features and apps. Expectations are high.

But even the iPhone didn't become a mainstream blockbuster in its first year, notes Creative Strategies analyst Ben Bajarin. Of the Apple Watch, he says, "people need to understand more about what this product is, and what it does, and I think that will evolve over time."

22.27 | 0 komentar | Read More

Apple will replace AT&T in the Dow Jones industrial average

NEW YORK — Apple will replace AT&T in the Dow Jones industrial average, the managers of the index announced early Friday.

S&P Dow Jones Indices said the switch will take place after the close of trading on Wednesday, March 18. Apple will start trading as part of the 30-stock Dow at the opening of trading the next day.

S&P Dow Jones Indices said it's making the move in response to a planned stock split for Visa, another member of the 119-year old barometer of the stock market.

After its four-to-one stock split, Visa will wind up with a lower price. S&P said that would reduce the weight of the information technology sector in the Dow. Adding Apple will help balance out this reduction. Unlike other stock-market measures, the Dow weighs members by their prices, so a large change in the price of one stock can have a big effect on the overall index.

S&P said swapping Apple for AT&T won't alter the Dow's level.

The last big shake-up came in September, 2013 when Goldman Sachs, Nike and Visa knocked out Alcoa, Bank of America and Hewlett-Packard.

Apple's stock rose $2.55, or 2 percent, to $128.99 in early trading on Friday. AT&T sank 46 cents, or 1.4 percent, to $33.54.

22.27 | 0 komentar | Read More