Cisco Systems on the Dow: In a major boost to Silicon Valley' prestige and a symbolic sea-change for Corporate America, Dow Jones today said it will remove General Motors from its storied stock index and replace the bankrupt automaker with San Jose-based Cisco Systems on June 8.
Cisco's addition to the Dow Jones Industrial Average reflects the increasing importance of information technology in the U.S. economy. IBM was added to the list in 1979. It was followed by Hewlett-Packard in 1997, then Intel and Microsoft in 1999.
"The parlous state of GM has left us with no choice but to remove it from The Dow. A bankruptcy filing immediately disqualifies a stock regardless of a company's history or its role as a cultural icon," said Robert Thomson, managing editor of The Wall Street Journal and editor-in-chief for all of Dow Jones.
He added that Cisco is a fitting addition "because its communications and computer-networking products are vital to an economy and culture still adapting to the Information Age - just as automobiles were essential to America in the 20th Century."
Cisco will continue to be listed on the Nasdaq stock exchange. The Dow Jones Industrial Average index includes companies listed both Nasdaq and the New York Stock Exchange.
Cisco's stock rose $1 or more than 5 percent to $19.50 in regular trading today.