Apple's Stock Drop Is 3-times Worse For The Dow Than GE's Stock Rally Is Good

By Tomi Kilgore Markets MarketWatch Pulse

Apple Inc.'s stock is falling less than General Electric Co.'s stock is rising, but the negative effect it's having on the Dow Jones Industrial Average is three-times worse than the positive effect GE's stock is having. Apple shares are shedding $3.12, or 2.1%, in premarket trade Monday after a downgrade at Mizuho, which would shave about 21 points off the price of the Dow. Meanwhile, GE's stock rallied $1.03, or 3.7%, ahead of the open, after announcing CEO Jeffrey Immelt was retiring, but that would only add about 7 points to the Dow's price. The Dow is price-weighted index, and since GE's stock is the lowest priced among its components, it has the least influence on the Dow's price. Apple's stock is the 8th-highest price.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.