NEW YORK ( TheStreet) -- Urban Outfitter ( URBN) has nabbed a spot on the S&P 500 index, replacing Affiliated Computer Services ( ACS), Standard & Poor's announced on Friday.

The move comes as Affiliated Computer Services is in the process of being acquired by Xerox ( XRX).

Shares of Urban Outfitters are up 2.3% to $32.30 in early morning trading Monday.

The contemporary apparel retailer was also upgraded on Friday by FBR Capital Markets to outperform from market perform.

Urban Outfitter's strong holiday sales may foreshadow how sales will fare in 2010, analyst Adrienne Tennant wrote in a note.

Urban Outfitter's holiday sales increased 5%, its first increase in over a year.

-- Reported by Jeanine Poggi in New York.

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