🚨 IBM warned on revenue and margins today. The stock dropped roughly $69.
That single move is slicing about 425 points off the Dow Jones Industrial Average.
Here's why: the Dow is price-weighted, not market-cap weighted. A stock's influence depends on its share price, not the size of the company. IBM has one of the highest share prices in the index, so a big dollar move in IBM moves the Dow more than an equivalent percentage move in a far larger company.