Yesterday we were thinking that with GM shares getting so low, even big swings didn’t have much of an impac ton the Dow. MarketBeat spells out how insonsquential it’s become
The Dow industrials had a lackluster session, falling 73 points. Leading the way in terms of percentage was General Motors, which fell 23%, accounting for a whopping nine points of the decline. Earlier in the day Deutsche Bank put a $0 price target on the automaker, and the stock has approached the point where such a decline would barely cause a blip in the Dow 30. Were it to give up its remaining $3.36 a share, the drop would account for 26 points of negative drag on the Dow.
The post notes that at it’s $3+ share price, it’s already well below the level where other stocks have been taken out of the index. Bailout or no, that seems just a matter of time.
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