Stocks in Motion: Index Additions
Several stocks moved after Standard & Poor's announced changes to its indices Tuesday night, including the addition of Whole Foods (WFMI), which will replace Visteon (VC) in the S&P 500. Whole Foods was recently up 5.3% to $79.45, reflecting demand anticipated when index-fund managers add the stock to their portfolio. Visteon, which was kicked out for having too low a market cap, lost 5.4% to $6.49.
Other movers included Affymetrix (AFFX), which will enter the S&P MidCap 400, and Blue Coat (BCSI), which will enter the S&P 600 along with Digitas (DTAS). Affymetrix was recently up 7.8% to $47.12, and Blue Coat rose 5.2% to $45.78.
Celgene (CELG) jumped after the Food and Drug Administration cleared its Revlimid to treat transfusion-dependent anemia. Initial shipments are expected to begin early next year. Celgene also split its stock 2-for-1 and said its CEO, John Jackson, will retire on June 1. The shares were recently up 4.7% to $60.19.
Shares of Linens N Things (LIN) took off after the company said it expects to meet two conditions of a private equity buyout and scheduled a shareholders' vote on the transaction. Linens N Things agreed last month to be acquired by Apollo Management for $28 a share. Before completing the deal, Apollo insisted that the company's fourth-quarter same-store sales decline be no more than 6%, and that the company produce earnings before interest, taxes, depreciation and amortization of $140 million this year. It expects to do both. In recent trading, Linens N Things rose 10.3% to $26.35.Riviera Holdings (RIV) soared after a group of investors filed with the Securities and Exchange Commission to say they are cooperating on a possible $15-a-share bid for the Las Vegas hotel and casino operator. The group, which includes former Starwood (HOT) chairman Barry Sternlicht, hired Bear Stearns as financial advisers. Shares of Riviera were up 14.3% to $16.50. Calmine (CALM) shot up after reporting a narrowed second-quarter loss and saying revenue rose 52% from a year ago. The Jackson, Miss., company said sales for the second quarter ended Nov. 26 rose to $138.3 million from $90.7 million last year. Cal-Maine lost $685,000, or 3 cents a share, compared with a loss of $5.3 million, or 23 cents a share, in the year-ago period. "Egg demand, sales volume, and egg prices started slow in the second quarter but finished on a very strong note, with robust sales and improved egg prices during the three weeks leading up to Thanksgiving," the company said in a press release. Shares of Cal-Maine were up 8.8% to $7.
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