DOW JONES NEWSWIRES
Standard & Poor's announced a number of changes to its indexes, including adding Cablevision Systems Corp. (CVC) and Netflix Inc. (NFLX) to its S&P 500 index, in moves that it says better reflect the market value of the companies.
F5 Networks Inc. (FFIV) and Newfield Exploration Co. (NFX) were also added to the S&P 500 index, in changes that will take place after the close of trading on Dec. 17.
Cablevision is replacing King Pharmaceuticals Inc. (KG), which is set to be acquired by Pfizer Inc. (PFE). The other three are replacing The New York Times Co. (NYT), Office Depot Inc. (ODP) and Eastman Kodak Co. (EK). Those companies will likewise be placed in the S&P MidCap 400 index.
S&P said the companies moving to the S&P 500 all have market capitalizations above $7 billion, while the companies moving to the S&P MidCap 400 were valued between $1 billion and $3.5 billion.
Additionally, S&P SmallCap 600 companies SM Energy Co. (SM), Concur Technologies Inc. (CNQR) and East West Bancorp Inc. (EWBC) will join the S&P MidCap 400, swapping places with Corinthian Colleges Inc. (COCO), Wilmington Trust Corp. (WL) and Coldwater Creek Inc. (CWTR).
Shares for the four companies moving into the S&P 500 index all rose in after-hours trading, as they often do when such moves are announced. That is because many portfolio managers try to track the index and to do that, they must buy shares of the companies that become part of it.
-By John Kell, Dow Jones Newswires; 212-416-2480; firstname.lastname@example.org