Apple gives credibility to the Dow: Analyst

Nasdaq congratulates Apple for joining the Dow Jones industrial average.
Nasdaq congratulates Apple for joining the Dow Jones industrial average.

Apple moving to the Dow Jones industrial average will give the 30-company index more credibility, an analyst from BTIG said.

"The Dow is just not a big index fund anymore, so I think Apple is providing more credibility for the Dow, than the Dow giving credibility to some company that's being added to it," Walter Piecyk told CNBC's "Power Lunch" on Friday.

The tech giant is moving to the blue-chip index, effective March 19—replacing AT&T. Apple's stock was up about 0.50 percent in Friday afternoon trading, while the telecommunications company's shares were down 1.5 percent.

Read MoreApple to replace AT&T in the Dow Jones Industrial Average

Piecyk added the move says volumes about AT&T and its sector. "Telecom is diminishing in the grand scheme of things," he said. "Verizon is distancing itself from AT&T. AT&T is moving on to Latin America and Verizon is doubling down in the U.S."

U.S. stocks were down midafternoon Friday, with blue-chip shares shedding more than 250 points.

Disclosure: Neither Piecyk, nor his family nor his firm, own stock in any of the companies mentioned.