NEW YORK, July 20 (Reuters) - Standard & Poor's said on Monday it will remove CIT Group Inc from its flagship S&P 500 stock index and replace it with software company Red Hat Inc after the close of trading on July 24.
CIT, the struggling New York-based lender to small- and mid-sized businesses, is being removed after its market value fell below $275 million, ranking 500th in the index.
Red Hat is the world's largest provider of Linux software, and is based in Raleigh, North Carolina.
Shares of companies joining the S&P 500 often rise because many portfolio managers try to track the index, and must buy shares of companies that enter it.
Red Hat shares closed Monday up $1.72 at $22.32 ahead of the announcement. CIT shares closed up 55 cents at $1.25.
(Reporting by Jonathan Stempel) Keywords: SP500 CHANGES/CITGROUP (jon.stempel@thomsonreuters.com; + 1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
CIT, the struggling New York-based lender to small- and mid-sized businesses, is being removed after its market value fell below $275 million, ranking 500th in the index.
Red Hat is the world's largest provider of Linux software, and is based in Raleigh, North Carolina.
Shares of companies joining the S&P 500 often rise because many portfolio managers try to track the index, and must buy shares of companies that enter it.
Red Hat shares closed Monday up $1.72 at $22.32 ahead of the announcement. CIT shares closed up 55 cents at $1.25.
(Reporting by Jonathan Stempel) Keywords: SP500 CHANGES/CITGROUP (jon.stempel@thomsonreuters.com; + 1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.