S&P adding Visa, 4 others to 500 index

AP News
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Posted: Dec 12, 2009 11:56 AM

Standard & Poor's will add Mead Johnson Nutrition Co., Visa Inc., Ross Stores Inc., Cliffs Natural Resources Inc. and SAIC Inc., to the S&P 500 index.

S&P said Friday it is making the changes effective after the close of trading Dec. 18 because several companies currently in the index are no longer representative of the market indicator.

Infant formula maker Mead Johnson, which is splitting from Bristol-Myers Squibb Co. will replace insurer and investment management company MBIA Corp. It said MBIA is ranked last in the S&P 500 and is no longer representative of the indicator's market capitalization range.

Payments processor Visa will replace telecommunications and network equipment company Ciena Corp.

Meanwhile, the retailer Ross Stores, the mining company Cliffs Natural Resources and technical services provider SAIC will replace power company Dynegy Inc., the homebuilder KB Home Inc. and outsourcing provider Convergys Corp. in the S&P 500.

S&P said the companies moving to the index all have market capitalizations above $5 billion, making them more representative of the market cap range.