A pair of high-profile
stocks began trading at split-adjusted prices today: Apple and Tesla. Investors
gobbled up their new, lower-price shares.
The electric-vehicle
maker split 5-for-1, while the iPhone maker completed a 4-for-1 split.
Tesla stock soared 12.6% today, to $498.32 a
share. That pushed its market value to over $464 billion, making it the
seventh-most valuable U.S. company—just ahead of Visa. Tesla's
market value surpassed Johnson &
Johnson last
week. It's now behind only the big five technology companies and Warren Buffett's
Berkshire Hathaway.
Apple shares, meanwhile, added 3.4% today, to close at $129.04. It
extended its lead as most valuable company around, at more than $2.2 trillion
in market capitalization.
But Apple's lower share
price means that its influence on the Dow
Jones Industrial Average is less than it used to be. That's because
the index is weighted based on price, not market capitalization like the S&P 500.
Apple's gain
added about 28 points to the Dow today—still the largest
contributor—but the index closed down 224 points. Had Apple's split and other changes to the Dow not taken place
today, it would have lost only 153 points.
Also effective today, Amgen, Honeywell, and Salesforce.com joined the index, while Exxon
Mobil, Pfizer, and Raytheon Technologies fell out.
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