Cisco boosts tech weighting on Dow Jones


Cisco boosts tech weighting on Dow Jones

Warwick Ashford

Network equipment maker Cisco Systems and US insurer Travelers are to replace recession hit Citigroup and General Motors on the Dow Jones Industrial Average US stock market barometer.

The changes, which take effect next week, come after GM filed for bankruptcy and Citigroup was given a $45bn US taxpayer bailout, according to the Financial Times.

GM yesterday struck a $33bn rescue deal with the US and Canadian governments and worker bodies.

The vehicle manufacturer will now begin a 60 to 90-day restructuring programme that could involve job cuts, some affecting IT workers.

Cisco joins Microsoft, Intel, IBM and Hewlett-Packard in the Dow's technology category, tipping the balance away from the industrial sector for the first time.

News of Cisco's inclusion in the Dow boosted shares by 5.4% in trading yesterday, and Travelers closed up 3.15%.

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