A Few Big Changes Are Coming to the S&P 500
S&P Dow Jones Indices has announced a few changes to its constituents as it shuffles the cards for the S&P 500.
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S&P Dow Jones Indices has announced a few changes to its constituents as it shuffles the cards for the S&P 500. Perhaps the largest change taking place is that Yahoo! Inc. (NASDAQ: YHOO) is being removed from the S&P 500, followed by J.C. Penney Co. Inc. (NYSE: JCP) being demoted to the SmallCap index.
Apart from this, IHS Market Ltd. (NASDAQ: INFO) will replace Tegna Inc. (NYSE: TGNA) in the S&P 500. At the same time Tegna and Cars.com Inc. (NYSE: CARS) will replace J.C. Penney and Time Inc. (NYSE: TIME) in the S&P MidCap 400. And finally J.C. Penney and Time will replace Tuesday Morning Corp. (NASDAQ: TUES) and Hornbeck Offshore Services Inc. (NYSE: HOS) in the S&P SmallCap 600. Note that these changes will take place prior to the market open on Friday June 2.
Separately, Independence Realty Trust Inc. (NYSEMKT: IRT) will replace Ultratech Inc. (NASDAQ: UTEK) in the S&P SmallCap 600, effective prior to the open on May 30. This is the result of Veeco Instruments Inc. (NASDAQ: VECO) acquiring Ultratech.
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As for Yahoo leaving the index, the S&P Dow Jones Indices detailed in a release:
S&P 500 constituent Yahoo! is expected to convert to a publicly traded, non-diversified, closed-end management investment company under the Investment Company Act of 1940, following the expected sale of its operational business to S&P 100 & 500 constituent Verizon Communications Inc. (VZ) in mid-June. Yahoo! will therefore be ineligible for continued inclusion in the S&P 500 following the sale. To take advantage of the expected increased liquidity surrounding the quarterly rebalance, S&P Dow Jones Indices will remove Yahoo! from the S&P 500 effective at the open on Monday, June 19 to coincide with the June 2017 rebalance. A replacement candidate will be announced at a later date with sufficient notice to clients.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
