Shares of Uber Technologies Inc. and Jabil Inc. surged in the extended session Friday after S&P Dow Jones Indices announced the stocks will join the S&P 500 index in a little over 2 weeks.
Ride-hailing company Uber
UBER, +1.72%
and electronics manufacturer Jabil, along with shares of the building-materials producer Builders FirstSource Inc.
BLDR, +3.86%will move to the S&P 500 SPX from the S&P MidCap 400 index MID. They replace Sealed Air Corp.
SEE, +2.04%Alaska Air Group Inc.
ALK, +5.08%
and SolarEdge Technologies Inc.
SEDG, +3.91%
shares in the index.
A place in the S&P 500 index is highly coveted by companies. It opens up their shares to a wider range of investors, as well as passive funds and actively managed funds that may have restrictions to where they can invest.
S&P Dow Jones stated that the changes, part of a regular rebalance, will take effect at market open on Monday, Dec. 18. The tweaks “ensure each index is more representative of its market-capitalization range,” the index provider said.
Jabil earlier this week lowered its quarterly and fiscal 2024 earnings outlook, stating demand for its products and services has softened. Uber last month reported third-quarter earnings above Wall Street expectations.
Friday’s changes also included Houlihan Lokey Inc.
HLI, +2.05%
and Equitable Holdings Inc.
EQH, +1.86%
moving to the midcap index, replacing Topgolf Callaway Brands Corp.
MODG, +6.61%
and Vestis Corp.
VSTS, +2.08 %Topgolf and Vestis will move to the S&P SmallCap 600 index SML.
