Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

GAUGING THE SEAT GRAB IN INDEX MUSICAL CHAIRS

It's relatively early in the second quarter, but given that it can be a busy one for index turnover, Stephens analyst Melissa Roberts looked at potential candidates for inclusion into the S&P 500 .SPX in a research note.

Roberts points out that to be added to an index a stock needs to meet eligibility criteria, but this does not guarantee a spot as committee members then get to weigh in and will ultimately decide which stocks become members.

New arrivals can be admitted due to M&A, but also when the committee makes a discretionary decision, usually during a quarterly rebalance. In the last five years, discretionary S&P 1500 .SPSUP turnover was highest in the second quarter at 1.4% on average, according to the analyst.

That said, with markets being volatile and 21 index members as acquisition targets, including Capital One's COF.N pending purchase of Discover Financial Services DFS.N, the committee may not need to make such aggressive changes this time around, she wrote.

The COF/DFS deal may lead to the next SPX add, according to Roberts who sees a replacement most likely from financial, communications services, consumer discretionary, or energy sectors, which are underweight relative to the broader market. And she notes that no S&P 400 .SP400 stocks are eligible.

But listing some potential candidates, the analyst notes that 10 out of 22 eligible companies are financials.

Roberts' list of those companies meeting requirements included Coinbase COIN.O, Ares Management ARES.K, Robinhood Markets HOOD.O, Block Inc XYZ.N, Tradeweb market TW.O, Blue Owl OWL.N, LPL Financial LPLA.O, First Citizen FCNCA.O, Markel Group MKL.N and Toast TOST.K.

But she sees ARES, TW, OWL and MKL as the less-likely near-term adds from that group.

The analyst also points to several other potential eligible additions including Trade Desk TTD.O, Flutter Entertainment FLUT.K, Carvana co CVNA.K and Cheniere LNG.N.

And she estimated that heath sector company Charles River Laboratories CRL.N is at greatest risk for a discretionary drop, and that Veeva Systems VEEV.K could be a suitable replacement.

Roberts also says Corcept Therapeutics CORT.O could be moved to the S&P 400 from the S&P 600 .SPCY.

(Sinéad Carew)

*****

EARLIER ON LIVE MARKETS:

LOOK BEYOND UK BLUE CHIPS! CLICK HERE

WALL STREET DIPS AS U.S. ECONOMY CONTRACTS CLICK HERE

BENCHMARK TREASURY YIELD TRYING TO SNAP 6-DAY STREAK OF DECLINES CLICK HERE

CTAS: A TURNAROUND IN SIGHT? CLICK HERE

WHAT TO OWN IN A FRAGMENTED WORLD CLICK HERE

EUROPEAN EARNINGS BEAT THE BLUES CLICK HERE

STOXX INCHES HIGHER ON HEAVY EARNINGS DAY CLICK HERE

EUROPE BEFORE THE BELL: FUTURES STRUGGLING FOR DIRECTION CLICK HERE

DATA DELUGE ROUNDS OFF TURBULENT APRIL CLICK HERE