Business
Dow Reshuffle: Apple Joins Blue-Chip Index, AT&T Gets Booted
BERNARD CONDON, AP Business Writers
MAE ANDERSON, AP Business Writers
NEW YORK (AP) — Apple is in. AT&T is out.
In another milestone for the popular and profitable iPhone giant, Apple will replace AT&T in the venerable Dow Jones industrial average on March 19, the manager of the index announced Friday.
The move isn’t likely to impact the 30-stock index much, and will have no effect on the fortunes of the two companies. But market experts say it does have symbolic importance, sort of like getting an Oscar at the Academy Awards — or at least a nomination.
The change cements Apple as “the gold standard of technology,” says Daniel Ives, a financial analyst at FBR Research. “They’ve really become the modern-day Wright Brothers.”
The reshuffling of the 119-year-old Dow, a barometer of market fortune and folly once dominated by railroads, also reflects a changed business world.
“It underscores that technology continues to be a critical driver of the overall economy,” says Edward Jones analyst Bill Kreher.
Apple is the world’s most valuable company. Its market value on the stock exchange, or what it would take to buy all its shares, closed last month above $700 billion, a first for any company.
Apple won’t get top billing in the Dow, though. Thanks to a quirk in the way the index is calculated, that honor will go to a company a little over a tenth as valuable: Goldman Sachs.
The Dow weights companies by how much it costs to buy a single share, not all of them. On Friday, a Goldman share fetched $186.91 versus $126.60 for Apple.
A look at the musical chairs at the world’s most famous index:
THE REASON
For all the symbolic importance, the trigger for the move is less colorful. The manager of the index, the S&P Dow Jones Indices, said it’s making the change in response to a planned stock split for Visa, another Dow member.
After its four-to-one 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 because Visa, a credit-card and payment-processing giant, counts as a tech stock. Adding Apple will help balance out this reduction.
TWEAKING THE INDEX
S&P Dow Jones Indices said the decision to fold in Apple won’t alter the overall level of the index, which stood at 17,856 Friday.
S&P Dow Jones is casting the move as a sort of a housekeeping maneuver, a way to ensure that the index better reflects the U.S. economy and markets.
The switch is not a reflection of its view of Apple.
“This doesn’t mean we like the stock, or don’t like the stock, or something like that,” says David Blitzer, chairman of the index committee at S&P Dow Jones.
CHALLENGES AT AT&T
While the Dow change wasn’t triggered by anything AT&T did, it comes at a challenging time for the phone giant.
The nation’s second-largest wireless carrier is facing pressure from smaller rivals T-Mobile and Sprint in a competitive environment in which most Americans already have a cellphone.
Its stock has risen just 3.5 percent in the past 12 months. That compares with a 10.4 percent gain in the Standard & Poor’s 500. Apple, meanwhile, has jumped 67 percent.
To keep growing, AT&T has had to look beyond cellphones — to tablets and connected cars, for example. Adding a tablet to a phone plan gets AT&T another $10 in monthly service fees.
The Dallas-based company is also trying to wean customers off equipment subsidies and shift them toward installment plans in which they ultimately pay full price for a phone.
In its most recent quarter, AT&T booked a loss due to one-time expenses. But its revenue rose 4 percent as it added 1.9 million subscribers, double the year-ago quarterly increase.
AT&T has bounced in and out of the blue chip average over the Dow’s long history. It first entered in 1916 as American Telephone & Telegraph, joining Central Leather, Studebaker and other industrial giants in an elite club of 20 companies. Much later, in 2004, AT&T was kicked out only to return the following year when it merged with SBC Communications.
THE DOW STILL MATTERS
Created in 1896, the Dow is one of the oldest gauges of stocks. Grover Cleveland was U.S. president that year. Companies like the Pacific Mail Steamship were counted among its ranks.
The index tracks only 30 stocks. The Standard & Poor’s 500 reflects the moves of 500.
The S&P 500 also ranks companies differently, assigning weights based on the value of all a company’s shares, not just one. That gives Apple more influence on daily moves in the index than any other stock. It accounts for nearly 4 percent of the index.
Professional investors focus more on the S&P 500 because they think it reflects the stock market better. They tend to use that index, not the Dow, to judge the performance of their own portfolios.
Ordinary investors also prefer the S&P 500, judging from the money they’ve put into index funds that mimic its performance. Investors have $4 trillion in 1,261 funds that track the S&P 500, according to Morningstar. That compares with just $13.6 billion in 12 Dow-based index funds.
Still, the Dow can’t be dismissed as a relic. It continues to be much cited and isn’t seen as wildly distorted.
One reason is that, for all its flaws, the Dow has largely mirrored the ups and downs of the much larger S&P 500. In the past 12 months, for instance, the Dow has risen 8.7 percent versus the S&P 500’s 10.4 percent.
The last big Dow shake-up came in September 2013, when Goldman Sachs, Nike and Visa knocked out Alcoa, Bank of America and Hewlett-Packard.
___
AP Business Writer Matthew Craft contributed to this report.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Activism
Books for Ghana
We effectively facilitated cross-continent community building! We met the call and provided 400 books for ASC’s students at the call of the Minister of Education. We supported the work of a new African writer whose breakout novel is an action-packed depiction of a young woman steeped in Ghanaian culture who travels to the USA for college, all the while experiencing the twists, turns, and uncertainties that life brings.
By Min. Rauna Thurston, Chief Mpuntuhene Afua Ewusiwa I
My travels to Afrika began in June 2022, on a tour led by Prof. Manu Ampim, Director of the organization Advancing The Research. I was scheduled to become an ordained Minister by Wo’se Community of the Sacred African Way. It was vital that my feet touch the soil of Kemet and my spirit connect with the continent’s people before ordination.
Since 2022, I’ve made six trips to Afrika. During my travels, I became a benefactor to Abeadze State College (ASC) in Abeadze Dominase, Ghana, originally founded by Daasebre Kwebu Ewusi VII, Paramount Chief of Abeadze Traditional Area and now run by the government. The students there were having trouble with English courses, which are mandatory. The Ghanaian Minister of Education endorsed a novel written by 18-year-old female Ghanaian first-time writer, Nhyira Esaaba Essel, titled Black Queen Sceptre. The idea was that if the students had something more interesting to read, it would evoke a passion for reading; this seemed reasonable to me. Offer students something exciting and imaginative, combined with instructors committed to their success and this could work.
The challenge is how to acquire 800 books?!
I was finishing another project for ASC, so my cash was thin and I was devoid of time to apply for annual grants. I sat on my porch in West Oakland, as I often do, when I’m feeling for and connecting to my ancestors. On quiet nights, I reminisce about the neighborhood I grew up in. Across the street from my house was the house that my Godfather, Baba Dr. Wade Nobles and family lived in, which later became The Institute for the Advanced Study of Black Family Life & Culture (IASBFLC). Then, it came to me…ancestors invited me to reach out to The Association of Black Psychologists – Bay Area Chapter (ABPsi-Bay Area)! It was a long shot but worth it!
I was granted an audience with the local ABPsi Board, who ultimately approved funding for the book project with a stipulation that the Board read the book and a request to subsequently offer input as to how the book would be implemented at ASC. In this moment, my memory jet set to my first ABPsi convention around 2002, while working for IASBFLC. Returning to the present, I thought, “They like to think because it feels good, and then, they talk about what to do about what they think about.” I’m doomed.
However, I came to understand why reading the book and offering suggestions for implementation were essential. In short: ABPsi is an organization that operates from the aspirational principles of Ma’at with aims of liberating the Afrikan Mind, empowering the Afrikan character, and enlivening: illuminating the Afrikan spirit. Their request resulted in a rollout of 400 books in a pair-share system. Students checked out books in pairs, thereby reducing our bottom line to half of the original cost because we purchased 50% fewer units. This nuance promoted an environment of Ujima (collective work & responsibility) and traditional Afrikan principles of cooperation and interdependence. The student’s collaborative approach encouraged shared responsibility, not only for the physical book but for each other’s success. This concept was Dr. Lawford Goddard’s, approved by the Board, with Dr. Patricia “Karabo” Nunley at the helm.
We effectively facilitated cross-continent community building! We met the call and provided 400 books for ASC’s students at the call of the Minister of Education. We supported the work of a new African writer whose breakout novel is an action-packed depiction of a young woman steeped in Ghanaian culture who travels to the USA for college, all the while experiencing the twists, turns, and uncertainties that life brings. (A collectible novel for all ages). A proposed future phase of this collaborative project is for ASC students to exchange reflective essays on Black Queen Sceptre with ABPsi Bay Area members.
We got into good trouble. To order Black Queen Sceptre, email esselewurama14@gmail.com.
I became an ordained Minister upon returning from my initial pilgrimage to Afrika. Who would have imagined that my travels to Afrika would culminate in me becoming a citizen of Sierra Leone and recently being named a Chief Mpuntuhene under Daasebre Kwebu Ewusi VII, Paramount Chief of Abeadze Traditional Area in Ghana, where I envision continued collaborations.
Min. Rauna/Chief Mpuntuhene is a member of ABPsi Bay Area, a healing resource committed to providing the Post Newspaper readership with monthly discussions about critical issues in Black Mental Health, Wealth & Wellness. Readers are welcome to join us at our monthly chapter meetings every 3rd Saturday via Zoom and contact us at bayareaabpsi@gmail.com.
Black History
Alice Parker: The Innovator Behind the Modern Gas Furnace
Born in Morristown, New Jersey, in 1895, Alice Parker lived during a time when women, especially African American women, faced significant social and systemic barriers. Despite these challenges, her contributions to home heating technology have had a lasting impact.
By Tamara Shiloh
Alice Parker was a trailblazing African American inventor whose innovative ideas forever changed how we heat our homes.
Born in Morristown, New Jersey, in 1895, Parker lived during a time when women, especially African American women, faced significant social and systemic barriers. Despite these challenges, her contributions to home heating technology have had a lasting impact.
Parker grew up in New Jersey, where winters could be brutally cold. Although little is documented about her personal life, her education played a crucial role in shaping her inventive spirit. She attended Howard University, a historically Black university in Washington, D.C., where she may have developed her interest in practical solutions to everyday challenges.
Before Parker’s invention, most homes were heated using wood or coal-burning stoves. These methods were labor-intensive, inefficient, and posed fire hazards. Furthermore, they failed to provide even heating throughout a home, leaving many rooms cold while others were uncomfortably warm.
Parker recognized the inefficiency of these heating methods and imagined a solution that would make homes more comfortable and energy-efficient during winter.
In 1919, she patented her design for a gas-powered central heating system, a groundbreaking invention. Her design used natural gas as a fuel source to distribute heat throughout a building, replacing the need for wood or coal. The system allowed for thermostatic control, enabling homeowners to regulate the temperature in their homes efficiently.
What made her invention particularly innovative was its use of ductwork, which channeled warm air to different parts of the house. This concept is a precursor to the modern central heating systems we use today.
While Parker’s design was never fully developed or mass-produced during her lifetime, her idea laid the groundwork for modern central heating systems. Her invention was ahead of its time and highlighted the potential of natural gas as a cleaner, more efficient alternative to traditional heating methods.
Parker’s patent is remarkable not only for its technical innovation but also because it was granted at a time when African Americans and women faced severe limitations in accessing patent protections and recognition for their work. Her success as an inventor during this period is a testament to her ingenuity and determination.
Parker’s legacy lives on in numerous awards and grants – most noticeably in the annual Alice H. Parker Women Leaders in Innovation Award. That distinction is given out by the New Jersey Chamber of Commerce to celebrate outstanding women innovators in Parker’s home state.
The details of Parker’s later years are as sketchy as the ones about her early life. The specific date of her death, along with the cause, are also largely unknown.
Activism
2024 in Review: Seven Questions for Frontline Doulas
California Black Media (CBM) spoke with Frontline Doulas’ co-founder Khefri Riley. She reflected on Frontline’s accomplishments this year and the organization’s goals moving forward.
By Edward Henderson, California Black Media
Frontline Doulas provides African American families non-medical professional perinatal services at no cost.
This includes physical, emotional, informational, psychosocial and advocacy support during the pregnancy, childbirth and postpartum period. Women of all ages — with all forms of insurance — are accepted and encouraged to apply for services.
California Black Media (CBM) spoke with co-founder Khefri Riley. She reflected on Frontline’s accomplishments this year and the organization’s goals moving forward.
Responses have been edited for clarity and length.
Looking back at 2024, what stands out to you as your most important achievement and why?
In 2024, we are humbled to have been awarded the contract for the Los Angeles County Medical Doula Hub, which means that we are charged with creating a hub of connectivity and support for generating training and helping to create the new doula workforce for the medical doula benefit that went live in California on Jan. 1, 2023.
How did your leadership and investments contribute to improving the lives of Black Californians?
We believe that the revolution begins in the womb. What we mean by that is we have the potential and the ability to create intentional generational healing from the moment before a child was conceived, when a child was conceived, during this gestational time, and when a child is born.
And there’s a traditional saying in Indigenous communities that what we do now affects future generations going forward. So, the work that we do with birthing families, in particular Black birthing families, is to create powerful and healthy outcomes for the new generation so that we don’t have to replicate pain, fear, discrimination, or racism.
What frustrated you the most over the last year?
Working in reproductive justice often creates a heavy burden on the organization and the caregivers who deliver the services most needed to the communities. So, oftentimes, we’re advocating for those whose voices are silenced and erased, and you really have to be a warrior to stand strong and firm.
What inspired you the most over the last year?
My great-grandmother. My father was his grandmother’s midwife assistant when he was a young boy. I grew up with their medicine stories — the ways that they healed the community and were present to the community, even amidst Jim Crow.
What is one lesson you learned in 2024 that will inform your decision-making next year?
I find that you have to reach for your highest vision, and you have to stand firm in your value. You have to raise your voice, speak up and demand, and know your intrinsic value.
In a word, what is the biggest challenge Black Californians face?
Amplification. We cannot allow our voices to be silent.
What is the goal you want to achieve most in 2025?
I really would like to see a reduction in infant mortality and maternal mortality within our communities and witness this new birth worker force be supported and integrated into systems. So, that way, we fulfill our goal of healthy, unlimited birth in the Black community and indeed in all birthing communities in Los Angeles and California.
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