Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Macy's to drop from S&P 500 to small-cap index

Published 03/31/2020, 07:16 PM
Updated 03/31/2020, 07:30 PM
© Reuters. FILE PHOTO: A shuttered Macy's store and empty parking lot are seen at the closed Palisades Center shopping mall during the coronavirus outbreak in West Nyack
US500
-
DJI
-
GAP
-
RTN
-
RTX
-
M
-

(Reuters) - Macy's Inc (N:M) will be removed from the benchmark S&P 500 stock index (SPX), the S&P Dow Jones Indices said on Tuesday, as coronavirus-induced store closures compound the retail sector's struggles with a shift to online shopping.

The company's shares have plunged more than 70% so far this year, leaving Macy's with a market value of $1.52 billion as of Tuesday's close, according to Refinitiv IBES data.

"Macy's has a market capitalization more representative of the small-cap market space," S&P said, adding that the company would become part of the S&P small-cap 600 index, effective April 6.

The pandemic has forced U.S. brick-and-mortar retailers, including Macy's Inc (N:M) and Gap Inc (N:GPS), to shut stores, furlough employees, withdraw forecasts and suspend dividends.

Macy's will be replaced in the S&P 500 by air conditioning company Carrier Global Corp .

Carrier was spun out last month by United Technologies (NYSE:UTX) in a bid to shed assets to complete its merger with Raytheon Co (N:RTN).

That deal is expected to close on April 3.

Raytheon will be replaced in the S&P 500 by United Technologies' elevator unit Otis Worldwide Corp , according to a statement from the S&P Dow Jones Indices.

© Reuters. FILE PHOTO: A shuttered Macy's store and empty parking lot are seen at the closed Palisades Center shopping mall during the coronavirus outbreak in West Nyack

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.