And The Winners Are...

General Motors will be replaced in the Dow Jones Industrial Average with Cisco (CSCO) on January 8th.

General Motors will be replaced in the S&P 500 by Devry (DV) tomorrow.

Devry is already up over 5% after hours on the news.

As noted here and here we had a few ideas, but we were dead wrong on this one. We expected to be dead wrong on the Dow pick because our goal was to make a logical addition, but the Dow has a history of adding something that is performing well. No need to take into account the various sector weightings, let's add more tech!

Many on the street seemed to be pushing for Cisco to get the nod, whether that had any influence who knows. Hopefully the Dow didn't top tick the recent run in tech like they did by adding Microsoft and Intel back in '99. They added Bank of America (BAC) to the Dow in February of 2008 - that worked out well!

Citigroup (C) was also removed (replaced by Travelers [TRV] a financial) which was a brilliant idea. It will be interesting to see how TRV and C compare going forward, being removed from the Dow could actually be a positive for Citigroup.