LIVE MARKETS-LPL Financial now among possible S&P 500 additions

Reuters
02/03
LIVE MARKETS-LPL Financial now among possible S&P 500 additions 

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LPL FINANCIAL NOW AMONG POSSIBLE S&P 500 ADDITIONS

The pool of possible stocks that could soon join the S&P 500 .SPX is growing, as LPL Financial LPLA.O has now cleared the financial viability requirement, according to Stephens analyst Melissa Roberts.

Roberts said LPL is competing with SoFi SOFI.O as a potential add among financials, "which seems less likely near-term due to M&A-driven sector growth."

The first quarter rebalance on March 20 is the next chance for changes to the benchmark S&P index, or the acquisition of S&P 500 industrials .SPLRCI component Dayforce DAY.N, which had its acquisition by Thoma Bravo approved by shareholders on November 12.

Roberts sees the addition of an industrials company as highly likely, with Vertiv Holdings VRT.N and Ferguson Enterprises FERG.N the largest eligible, "with our bias for VRT, the largest-overall eligible add," said Roberts.

The index committee announces any rebalance changes on March 6, according to Roberts, and will likely migrate outsized S&P 400 tech .SPMDCT sector stocks Ciena CIEN.N and Coherent COHR.N, making it less likely a tech name will be added.

Among other eligible additions to the S&P 500, Roberts favors near-term odds for Reddit RDDT.N with higher odds for a healthcare name such as Alnylam Pharma ALNY.O or Veeva Systems VEEV.N when Hologic HOLX.O is acquired.

(Chuck Mikolajczak)

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EARLIER ON LIVE MARKETS:

"RUN IT HOT" TAKES A DETOUR TO ENSURE IT REACHES ITS DESTINATION - MS - CLICK HERE

US STOCKS EDGE UP IN EARLY TRADE BUT COMMODITY WEAKNESS CONTINUES - CLICK HERE

DIVIDENDS BOLT OUT OF THE GATE, WHILE GROWTH IS THE GLUE - CLICK HERE

DRIVERS BEHIND GOLD RALLY STILL POWERFUL DESPITE PULLBACK - BARCLAYS CLICK HERE

WHY A FED UNDER WARSH MAY BE TOO HAWKISH CLICK HERE

EUROPEAN SOFTWARE: WHEN FEAR CLOUDS FUNDAMENTALS CLICK HERE

DEFENSIVES HELP STOXX LIMIT THE DAMAGE CLICK HERE

BEFORE THE BELL: FUTURES FALL AS METAL ROUT HITS MINERS CLICK HERE

METALS GET A LOT LESS PRECIOUS AS POSITIONS SQUEEZED CLICK HERE

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