Uber Stock Joins S&P 500. Who Else Did—and Who Was Removed.

The Uber addition isn’t a surprise. At $116 billion, the ride-share company is the largest U.S. company ranked by market capitalization that wasn’t in the S&P 500.

Uber qualified for inclusion in the S&P 500 after its third-quarter earnings report showed profitability over the prior four quarters based on generally accepted accounting principles.

Stocks often advance on the news of company additions to the S&P 500 as investors buy ahead of index-related purchases on the addition date, hoping to profit from potential gains from the announcement to addition date. That was the case with Uber stock, which has gained 4.5% on Monday, but not the other two additions. While Jabil was up 3.1% and Builders FirstSource was up 2.3% in after-hours trading on Friday, they were off 1.1% and 0.9%, respectively, on Monday.

The additions of the three companies will coincide with the index’s quarterly rebalancing. S&P Dow Jones Indices often makes changes to the S&P 500 and other key indexes around the time of the quarterly rebalances.

S&P shook up its mid- and small-cap indexes too.

In the
S&P MidCap 400,
Rambus and
Comfort Systems USA
will replace Jabil and Builders FirstSource, respectively. Also,
Houlihan Lokey
and
Equitable Holdings
will replace
Topgolf Callaway Brands
and Vestis.

In the
S&P SmallCap 600,
Sealed Air, Alaska Air, and SolarEdge will replace
Orthofix Medical,
Rambus, and Comfort Systems. Topgolf and Vestis will replace Clearfield and
OneSpan,
respectively.
Alkermes,
Amrstrong World Industries,
National HealthCare,
and
PJT Partners
will replace
Community Health Systems,

Invesco Mortgage Capital,

Avid Bioservices,
and
James River Group Holdings,
respectively, in the small-cap index.

Write to Andrew Bary at [email protected]