Match stock and Tandem stock jumped on news that they will enter the S&P 500 index and S&P MidCap 400 index, respectively.
Late Friday, S&P Dow Jones Indices announced that Match Group (MTCH) will join the S&P 500 index. Match owns the Tinder dating app. And Ceridian (CDAY) and Brown & Brown (BRO) get promoted from the S&P MidCap 400 to the S&P 500 as part of a quarterly rebalancing.
Among other notable index changes, Tandem Diabetes (TNDM) will be added to the S&P MidCap 400. And Unum Group (UNUM), NOV (NOV) and Perrigo Group (PRGO) move from the S&P 500 to the S&P MidCap 400. Meanwhile, Healthcare Services Group (HCSG) will replace Microstrategy (MSTR) in the S&P SmallCap 600. UniQure (QURE) also joins the small-cap index, while WW International (WW), formerly Weight Watchers, gets demoted from the mid-cap to the small-cap index.
Match Stock, Tandem Stock
Shares of Match Group jumped 11% to 164 early on the stock market today. Match stock is consolidating around the 50-day line with a 174.78 buy point, according to MarketSmith chart analysis. But investors could use 168.31 as an entry for MTCH stock.
Tandem stock popped 8% in Tuesday’s premarket. TNDM had closed Friday at 114.28, just above a 113.58 buy point.
UniQure stock leaped 10%, HCSG stock climbed 6% and WW added 3%. MicroStrategy stock fell 1% early.
The full list of index changes can be found here.
The quarterly index rebalancing or reshuffling is done to ensure each index is more representative of its market capitalization range, index provider S&P Dow Jones Indices said.
The changes take effect prior to the open of trading on Sept. 20. The event compels fund managers to align their holdings with the reconstituted indexes, with savvy investors in turn bidding up certain stocks ahead of time.
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