DOW JONES NEWSWIRES
Standard & Poor's said it would add heavy-duty mining
equipment maker Joy Global Inc. (JOYG) to its S&P 500 index,
replacing Allegheny Energy Inc. (AYE), which is set to be acquired
by FirstEnergy Corp. (FE).
As a result of that move, S&P SmallCap 600 constituent
Cypress Semiconductor Corp. (CY) will replace Joy Global in the
S&P MidCap 400, and automated-teller-machine operator
Cardtronics Inc. (CATM) will replace Cypress in the SmallCap 600.
The date of the changes hasn't been determined.
Shares of Joy Global climbed 2.7% to $99.51 in after-hours
trading. The shares of companies joining the S&P 500 often rise
because many portfolio managers try to track the index. To do that,
they must buy shares of the companies that become part of it.
Meanwhile, S&P said food maker B&G Foods Inc. (BGS) will
replace network-storage company Compellent Technologies Inc. (CML)
in the S&P SmallCap 600 after the close of trading on Feb. 22,
as Compellent is being acquired by Dell Inc. (DELL) in a
transaction expected to be completed on or about that date.
S&P also updated the market capitalization guidelines for
its U.S. indexes. Effective Wednesday, a value of $4 billion or
greater is considered for the S&P 500, while companies valued
between $1 billion to $4.4 billion are for the S&P MidCap 400
and those between $300 million to $1.4 billion are for the SmallCap
600.
David Blitzer, managing director and chairman of the index
committee, said the new ranges are based on S&P's review of
"recent market activity, comments from index users and the current
U.S. market cap distribution."
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com