Financial services provider
First Tennessee National
was climbing in premarket trading on news that it would replace
after Compaq completes its merger with
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
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.