Bank of America, HP, Alcoa Getting the Boot from the DJIA and 3 More Hot Stocks
Bank of America (NYSE:BAC): Bank of America, Hewlett-Packard (NYSE:HPQ), and Alcoa (NYSE:AA) are being given the boot from the Dow Jones Industrial Average. They’ll be replaced with Goldman Sachs, Nike, and Visa. ”We had to think about it, but the arithmetic doesn’t work,” S&P’s David Blitzer, commenting on the conspicuous lack of Apple or Google among the new parties. The DJIA is currently price-weighted, meaning the share price is more important to a company’s weight in the index rather than market cap, Seeking Alpha explains.
Petroleo Brasileiro S.A. (NYSE:PBR): PetroBras maintains that its computer networks are safeguarded against spying in response to reports indicating that the company was an alleged target of the U.S. National Security Agency. Brazil’s biggest TV network reported over the weekend that leaked U.S. documents revealed a secret training demonstration that showed how to hack private computer networks belonging to PetroBras and Google, Seeking Alpha reported, adding that Brazilian President Dilma Rousseff – who was understandably upset — said if the allegations are confirmed, the motive for the spying was not “safety and combating terrorism, but economic and strategic interests.”
Time Warner Inc. (NYSE:TWX): Time Inc. is reportedly in late-stage talks to acquire five magazines including Travel + Leisure and Food & Wine from American Express Publishing Group, though initial financial terms haven’t been disclosed. The AmEx titles have contracted with Time Inc. for the past 20 years to perform a host of back-office operations such as circulation and marketing. AmEx Publishing, meanwhile, oversaw the editorial and advertising portions, the New York Post says.
Cisco Systems Inc. (NASDAQ:CSCO): On the heels of Western Digital’s solid-state drive purchase on Monday, Cisco announced that it intends to acquire the privately held Whiptail, also a provider of solid-state memory systems, for $415 million. Cisco points out that Whiptail’s technology allows organizations ”to simplify data center and virtualized environments, and process more data in less time.”