Five Companies Added to S&P 500

Five companies are being added to the prestigious S&P 500 Index beginning next Wednesday. The companies are MGM Resorts, ResMed, Packaging Corporation of America, A.O. Smith and Duke Realty.

S&P Dow Jones Indices announced it will make the following changes to the S&P 500 and S&P MidCap 400 indices effective prior to the open of trading on Wednesday, July 26:

  • MGM Resorts Int’l. (NYSE: MGM) will replace Reynolds American Inc. (NYSE: RAI) in the S&P 500. British American Tobacco plc (NYSE MKT:BTI) is acquiring Reynolds American in a deal expected to be completed on July 25, pending final conditions.
  • S&P MidCap 400 constituents ResMed Inc. (NYSE: RMD), Packaging Corporation of America (NYSE: PKG), A.O. Smith Corp. (NYSE: AOS) and Duke Realty Corp. (NYSE: DRE) will replace Mallinckrodt plc (NYSE: MNK), Murphy Oil Corp. (NYSE: MUR), Bed Bath & Beyond Inc. (NASD:BBBY) and Transocean Ltd. (NYSE: RIG) respectively, in the S&P 500. Mallinckrodt, Murphy Oil, Bed Bath & Beyond and Transocean will replace ResMed, Packaging Corporation of America, A.O. Smith and Duke Realty, respectively in the S&P MidCap 400. All stocks moving to the S&P 500 have total market capitalizations above $10 billion making them more representative of the large-cap market space. All stocks moving to the S&P MidCap 400 have total market capitalizations below $4.5 billion making them more representative of the mid-cap market space.

MGM Resorts owns and operates casino resorts including the Borgata in Atlantic City as well as the Bellagio, MGM Grand and Mandalay Bay in Las Vegas. Headquartered in Las Vegas, NV, the company will be added to the S&P 500 GICS (Global Industry Classification Standard) Casinos & Gaming Sub-Industry index.

ResMed designs, manufactures, distributes, and markets medical devices and cloud-based software applications. Headquartered in San Diego, CA, the company will be added to the S&P 500 GICS Health Care Equipment Sub-Industry index.

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products. Headquartered in Lake Forest, IL, the company will be added to the S&P 500 GICS Paper Packaging Sub-Industry index.

A.O. Smith manufactures and markets residential and commercial gas, gas tankless, electric water heaters, and water treatment products. Headquartered in Milwaukee, WI, the company will be added to the S&P 500 GICS Building Products Sub-Industry index.

Duke Realty, a real estate investment trust (REIT), specializes in the ownership, management and development of industrial and medical office properties. Headquartered in Indianapolis, IN, the company will be added to the S&P 500 GICS Industrial REITs Sub-Industry index.

Mallinckrodt develops, manufactures, markets and distributes specialty pharmaceutical products and therapies. Headquartered in United Kingdom, the company will be added to the S&P MidCap 400 GICS Pharmaceuticals Sub-Industry index.

Murphy Oil operates as an oil and gas exploration and production company. Headquartered in El Dorado AR, the company will be added to the S&P MidCap 400 GICS Oil & Gas Exploration & Production Sub-Industry index.

Bed Bath & Beyond operates a chain of retail stores. Headquartered in Union, NJ, the company will be added to the S&P MidCap 400 GICS Homefurnishing Retail Sub-Industry index.

Transocean provides offshore contract drilling services for oil and gas wells. Headquartered in Switzerland, the company will be added to the S&P MidCap 400 GICS Oil & Gas Drilling Sub-Industry index.

Following is a summary of the changes:

S&P 500 INDEX – July 26, 2017

COMPANY

GICS ECONOMIC SECTOR

GICS SUB-INDUSTRY

ADDED

MGM Resorts

Consumer Discretionary

Casinos & Gaming

ResMed

Health Care

Health Care Equipment

Packaging Corporation of America

Materials

Paper Packaging

A.O. Smith

Industrials

Building Products

Duke Realty

Real Estate

Industrial REITs

DELETED

Reynolds American

Consumer Staples

Tobacco

Mallinckrodt

Health Care

Pharmaceuticals

Murphy Oil

Energy

Oil & Gas Exploration & Production

Bed Bath & Beyond

Consumer Discretionary

Homefurnishing Retail

Transocean

Energy

Oil & Gas Drilling

S&P MIDCAP 400 INDEX – July 26, 2017

COMPANY

GICS ECONOMIC SECTOR

GICS SUB-INDUSTRY

ADDED

Mallinckrodt

Health Care

Pharmaceuticals

Murphy Oil

Energy

Oil & Gas Exploration & Production

Bed Bath & Beyond

Consumer Discretionary

Homefurnishing Retail

Transocean

Energy

Oil & Gas Drilling

DELETED

ResMed

Health Care

Health Care Equipment

Packaging Corporation of America

Materials

Paper Packaging

A.O. Smith

Industrials

Building Products

Duke Realty

Real Estate

Industrial REITs