S&P Dow Jones Indices said Friday that Bloom Energy, Illumina and Everpure will join the S&P 500 as part of the latest quarterly rebalance, with the changes taking effect before trading starts on Sept. 21. Molson Coors Beverage, Trade Desk and Builders FirstSource will exit the index.
The additions sparked a quick after-hours bump: Bloom Energy climbed 6%, Illumina rose 1.7% and Everpure added 2.2%. Bloom Energy, which makes fuel cells that generate electricity from natural gas, has seen strong data center demand. In July it delivered earnings more than double forecasts and raised its full-year outlook for a second straight quarter.
Illumina, a life sciences company, also lifted full-year total revenue guidance above estimates in July. Everpure, a computer storage firm, posted results that topped expectations.
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Passive money keeps getting bigger, so sliding into the S&P 500 can boost demand for a stock. Recent moves show the churn: Reddit Inc. joined in August in an off-cycle swap with AvalonBay Communities Inc., and in June Marvell Technology Inc. and Flex Ltd. entered while Pool Corp. and Campbell's Co. left. If you hold these names through index funds, reshuffles like this can nudge how much money is heading in or out of them.
