GM will be delisted and replaced in the DOW, likely by AAPL or GS. This alone could send the DOW up a couple hundred points or more.
Removing GM from the DOW will not impact on the index. Generally speaking, Dow Jones tweaks the formula it uses to calculate the Dow so substitutions won't change the value of the index, which is based on the stock prices of its components.
why would simply replacing GM send the DOW up a few hundred points? GM was due to be replaced anyway. Mutual funds and what not will have to take a hit, and people's long term accounts will be wiped out tomorrow holding onto a blue chip like GM.
I know the news is better than the wait, but big money will sell off shortly. They set up the market to rally up Friday so they can dump on you and short against you.
Plus Obama will be speaking around 11am and we all know everytime some figurehead speaks it is never good for the market.
I can just see the market selling off hard tomorrow. Most likely V or MA will be added.
You seem to be uneducated as to how the index assigns values and points to its member stocks.
Adding anyone, no matter who it is, is not going to bump, raise, jolt, or otherwise the index. It will be assigne a neutral value. From that point forward, it will be 1 stock among 30 and its affect will be minimal.
I think gm is replaced with a tech industrial of some sort, not a financial. And in the next two weeks we are going to crash. Mark this post! Double digit inflation is the headline. If the bond markets had not become as bad as they are then I would say equities would run more, no longer the case starting this week.