Investing.com reported that Ferguson Enterprises Inc. (NYSE:FERG) saw its shares jump 8% in after‑hours trading on Friday following an announcement by S&P Dow Jones Indices that the company will be added to the S&P 500 index. The inclusion will take effect prior to the opening of trading on Wednesday, August 5, and will see Ferguson replace Electronic Arts Inc. (NASDAQ:EA) in the benchmark. S&P Dow Jones noted that EA is being acquired by an investor consortium comprising the Public Investment Fund, Silver Lake and Affinity Partners, with the transaction expected to close soon pending final conditions. The article also detailed that the addition of a new constituent typically generates buying pressure from index‑tracking funds and ETFs that must purchase shares of the newly added company. Ferguson operates in the Industrials sector under the Global Industry Classification Standard.
In a related index update, S&P Dow Jones Indices announced that ADI Global Distribution Inc. (NYSE:ADIG) will be added to the S&P SmallCap 600, effective before the market opens on Tuesday, August 4. ADI Global Distribution is being spun off from its current parent, Resideo Technologies Inc. (NYSE:REZI), with the spin‑off transaction slated for completion on August 4. ADI will replace Hertz Global Holdings Inc. (NASDAQ:HTZ) in the SmallCap 600, with the replacement effective prior to the opening of trading on Wednesday, August 5. S&P Dow Jones indicated that Hertz no longer represents the small‑cap market space.
Market ticker movements accompanying the news showed the S&P 500 index up 0.70%, EA up 0.14%, the S&P SmallCap 600 down 1.35%, REZI down 1.25%, FERG up 3.54% and HTZ down 4.23%.
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