S&P 500 will hit 5,000 by end of 2022: Katz
UBS managing director and senior portfolio manager Jason Katz shares his market predictions.
Match Group Inc. will become the newest member of the S&P 500 index, according to S&P Dow Jones Indices.
Shares of the Dallas-based Match Group, which owns dating services including Tinder, Match.com, Hinge and OK Cupid, climbed by as much as 9.76% to $162.65 apiece before paring their gains.
Other companies set to join the benchmark index include software company Ceridian HCM Holding Inc. and insurer Brown & Brown Inc.
|MTCH||MATCH GROUP, INC.||159.38||+11.19||+7.55%|
|BRO||BROWN & BROWN, INC.||58.29||-0.66||-1.12%|
They will replace private label drugmaker Perrigo Co., insurer Unum Group and oil and gas equipment provider NOV Inc.
|PRGO||PERRIGO CO. PLC||41.79||-0.06||-0.14%|
The changes to the index will take place before the opening bell on Sept. 20.
Companies that are being added to the S&P 500 typically see their stock price spike because funds that track the index must buy shares in order to rebalance their holdings.
S&P Dow Jones Indices makes quarterly changes to the index.
In order to be eligible to be included in the S&P 500 index a company must be U.S.-based, have a market capitalization of at least $11.8 billion, be highly liquid, have a public float of at least 10% and its most recent quarter’s earnings and the sum of its trailing four consecutive quarters’ earnings must be positive.
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The last major addition to the index was Tesla Inc. when the electric-car maker was added in December 2020. Tesla shares gained 22% in the three days following the announcement of their inclusion, but slid 6.49% in their debut.
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