Shares of Uber Technologies Inc. and Jabil Inc. rose in the extended session Friday after S&P Dow Jones Indices said the stocks will join the S&P 500 index in a little over two weeks.
Shares of ride-hailing company Uber UBER, +1.72% and components maker Jabil, as well as shares of the building-materials manufacturer 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 a coveted spot for companies. It brings their shares to a much broader range of investors, as well as to passive funds and actively managed funds that may have limitations to where they can invest.
S&P Dow Jones said that the changes, part of a routine rebalance, will be effective 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 revenue outlook, saying 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.