Calpine Booted From S&P 500

Calpine (CPN Quote) learned that it's getting taken out of the S&P 500 just hours after Peter Cartwright, the company's founder and chief executive, and Robert D. Kelly, its chief financial officer, were taken off the payroll.

After the close of trading Tuesday Calpine had a market capitalization of about $307 million, putting it 500th in the index.

Genworth Financial (GNW Quote), the insurance company split off from GE (GE Quote) in 2004, will replace Calpine after trading wraps up Thursday.

Calpine ended regular trading at a 52-week low of 54 cents, down 71 cents, or 57% on volume that was 13 times heavier than normal. The company's removal from the index likely means its battered stock will face even more selling pressure as money managers whose holdings mimic the S&P 500 move to unload the shares.

The opposite may well be true for Genworth. Often shares rise when a company is added to the S&P because portfolio managers have to acquire the stock.

Calpine has been a consistent money-loser in recent years, and the power company has been pummeled by rising energy costs and borrowing fees. In particular, the increase in natural gas prices has hurt Calpine because that's what runs most of its plants.