S&P 500 index to add Cablevision

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 for companies because listed stocks are routinely bought by investment funds tracking the index.

Bethpage-based Cablevision, which owns Newsday, will replace King Pharmaceuticals Inc., which has been purchased by Pfizer Inc.

The New York Times Co., Office Depot Inc. and Eastman Kodak Co. were also bumped from the list. They were replaced by Netflix Inc.; F5 Networks Inc., an info tech company; and Newfield Exploration, a gas and oil company.

Shares of Cablevision, Netflix and F5 all closed higher on the news Friday. Cablevision was up $1.36 to close at $34.72.

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 additions 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."