LIVE MARKETS-Who's on deck for S&P 500 inclusion?

Reuters
Jul 08
LIVE MARKETS-Who's on deck for S&P 500 inclusion?

Main US indexes red; Dow down most, off ~0.8%

All 11 S&P sectors lower; Cons Disc weakest

Euro STOXX 600 index up ~0.4%

Dollar rallies; crude up ~1%; gold, bitcoin dip

US 10-Year Treasury yield rises up to ~4.38%

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WHO'S ON DECK FOR S&P INCLUSION?With S&P recently updating its market capitalization requirements for eligibility at the start of July, Melissa Roberts, analyst at Stephens Inc in New York, looks at which companies may be eligible for inclusion.

Roberts notes that new additions to the indexes outperformed on average by 6% to 9% on the following day after the announcement and the "23 S&P 150 stocks that are M&A targets will drive index changes."

For the S&P 500 .SPX, Roberts said that financials .SPSY are the most underweight sector relative to the broad market, which may lead to the migration of Interactive Brokers IBKR.O.

While Roberts sees nine financials among 20 possible additions to the S&P 500, she said that may be unlikely given the recent addition of Coinbase Global COIN.O in May and the possibility of IBKR migrating.

Other additions Roberts sees as possible in underweight sectors include Trade Desk TTD.O, Reddit RDDT.N and Pinterest PINS.N in communication services .SPLRCL, Carvana CVNA.N and Flutter Entertainment FLTRF.L in consumer discretionary .SPLRCD and Cheniere LNG.N in energy .SPNY.

(Chuck Mikolajczak)

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EARLIER ON LIVE MARKETS:

US STOCKS SLUGGISH TO START THE TRADING WEEK CLICK HERE

DOW INDUSTRIALS: POISED TO LEAP OVER THE VELVET ROPE? CLICK HERE

TARIFF KAYFABE? CLICK HERE

AFTER WALL ST'S "UNHEALTHY' RALLY", ROTATION IS COMING CLICK HERE

STAY LONG GILTS SAY UBS CLICK HERE

A SLOW START CLICK HERE

EUROPE BEFORE THE BELL, LOTS OF NEWS BUT WHAT TO DO? CLICK HERE

MORNING BID EUROPE: CHAGRIN AS TRUMP PLAYS THREE-CARD TRICK ON TRADE CLICK HERE

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