Financial services provider

First Tennessee National

(FTN)

was climbing in premarket trading on news that it would replace

Compaq

(CPQ)

in the

S&P 500

after Compaq completes its merger with

Hewlett-Packard

(HWP)

.

First Tennessee National is a component of the S&P MidCap 400, but it is expected to replace Compaq in the S&P 500 after Compaq's merger closes today. Beverage maker

Constellation Brands

(STZ) - Get Report

will replace First Tennessee on the S&P MidCap 400.

Shares of companies added to the S&P 500 index often rise as fund managers who track the index add shares.

First Tennessee was up about 5% to $40.30 on the Instinet platform after closing at $38.54 Thursday before the news.