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Cablevision to join S&P 500

Cablevision offices

Cablevision offices Credit: Bloomberg

Cablevision Systems Corp.'s stock will become part of the Standard & Poor's 500 index, a move that tends to lead to higher share prices because listed stocks are routinely bought by investment funds tracking the index.

Bethpage-based Cablevision, which owns Newsday, will replace King Pharmaceuticals Inc. Pfizer Inc. is buying King, so it will no longer trade as an independent stock.

The New York Times Co., Office Depot Inc. and Eastman Kodak Co. were also bumped from the list.

They will be replaced on the S&P 500 by Netflix Inc., the info tech company F5 Networks Inc. and the gas and oil industry’s Newfield Exploration Co.

Shares of Cablevision, Netflix and F5 rose on the news Friday.

The S&P 500 list is maintained by a team of Standard & Poor's economists and analysts who meet regularly and make decisions when needed. There is no regular schedule for adds and drops.

When adding, they look for U.S.-based companies with a minimum of $3.5 billion in market capitalization, a reasonable stock price and adequate float of at least 50 percent of a company's stock in active trade on the Nasdaq or New York Stock Exchange. The committee also seeks a representative balance of leading U.S. industries, and looks for at least four straight quarters of positive earnings.

Their goal is to make sure the index remains a leading indicator of the stock market, "reflecting the risk and return characteristics of the broader large cap universe,” S&P says. “Companies in the S&P 500 are considered leading companies in leading industries.”

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