Why Apple Replacing AT&T Is 'Perfect Symbolic Moment For Where We Are In The Evolution Of American Technology'

Apple Inc. (NASDAQ: AAPL) shares opened up on Friday amid the announcement by McGraw Hill Financial that the company would be replacing cellular giant AT&T Inc. (NYSE: T) in the Dow Jones Industrial Average after trading closes on March 18.

Manhattan Venture Partners Chief Economist, Max Wolff, was on CNBC Friday to discuss the impact of this move.

Perfect Symbolism

"It was about time it was added," Wolff said.

He elaborated, "Largest market cap in the U.S., certainly the largest brand in consumer electronics in the U.S. (probably in the world) and for many reasons culturally dominant. So, it more than fills all the categories we are supposed to have for the leadership Dow companies, has for a long time. I think it belongs there."

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"I think it's probably good for the index and I couldn't possibly think the symbolism is more clear about the new digital future, seeing the AT&T be replaced by Apple, which is a kind of perfect symbolic moment for where we are in the evolution of American technology."

Making Dow ‘Modern'

Wolff was asked what effect Apple's addition to Dow Jones Industrial Average will will have on the index. He replied, "Well certainly it will make the index more likely to follow what Apple is doing. And I think it will make the index a little bit more useful in terms of it'll show you a little more of what the new economy is up to."

"So, we have seen a lot of critique of the Dow and this actually occurs about every 15 to 20 years in modern American history, but certainly recently too, that the new economy weight in the Dow is not high enough and the old economy or industrial weight is a little bit overly high. And part of what putting Apple in there does is say, ‘okay, the Dow is a little more modern, a little more tech heavy just like the U.S. economy," he concluded.