Advanced Micro Devices (AMD) and science-related engineering firm SAIC Inc. (SAI) are being dropped from the S&P 500 Index and added to the S&P MidCap 400 Index in a swap involving a biotech firm and an electronic instrument maker that will move out of the midcap index and join the S&P 500. All the moves are meant to align each firm’s market value with the proper index.
The two companies ascending into the world’s most well-known equities index are Vertex Pharmaceuticals (VRTX) and Ametek Inc. (AME), S&P Dow Jones Indices said in a press release, noting both the firms joining the S&P 500 have market values of about $10 billion.
“Advanced Micro Devices is ranked #500 in the S&P 500 and has a market capitalization more representative of the midcap market space,” S&P Dow Jones Indices said in a press release about the microchip maker. The indexing firm noted that SAIC will be splitting into two companies in a transaction expected to be completed before month’s end.
The changes are effective after the close of trading on Friday, Sept. 20, the indexing company said.
Another upcoming change is Capstead Mortgage Corp. (CMO) replacing Rue 21 Inc. (RUE) in the S&P SmallCap 600 after the close of trading on Thursday, Sept. 19. Apax Partners is acquiring Rue 21 in a deal expected to be completed on or about that date, pending final approvals, S&P Dow Jones said.