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Analysts Eye Google, Cisco To Replace Citi And GM On The Dow

  • Reuters, Wednesday, March 11, 2009 12 PM
Now that their stocks are trading below $2, Wall Street analysts agree that Citigroup and General Motors will most likely be replaced in the Dow Jones Industrial average. Tech bellwethers Google and Cisco are viewed as top contenders to replace Citi and GM.

In recent weeks, six stocks on the Dow have sunk below $10; meanwhile, the index itself has lost roughly 25% of its value since the start of the year, prompting analysts to call for an update.

"I don't have much interaction with Exxon Mobil (one of the 30 stocks listed on the Dow), but I'm on Google 47 times a day," said Barry Ritholtz, chief market strategist of Fusion IQ. "Indirectly that means I'm interfacing with the plumbing of Cisco." Other potential candidates include credit card provider Visa and consumer electronics giant Apple.

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