Carvana and two other companies will jointhe S&P 500 in about two weeks, S&P Dow Jones Indices said late Friday
-- dashing the hopes of those investors who expected bigger tech names or a
crypto giant to get the honors this time around.
Joining the online used-car retailer on thepremier U.S. stock-market index are building-materials maker $CRH PLC (CRH.US)$
as well as $Comfort Systems USA (FIX.US)$, which provides mechanical and
electrical services for commercial and industrial buildings. Shares of CRH and
Comfort Systems rose 7% and 1%, respectively, in Friday's extended session.
The changes are scheduled to be in placebefore the market open on Monday, Dec. 22, S&P Dow Jones Indices said. A
place in the S&P 500 is a coveted spot for companies as it exposes their
shares to a much broader range of investors, including passive funds that track
the equity benchmark and actively managed funds that may have restrictions on
where they can invest.
The moves are part of a regularly scheduledquarterly rebalance for the index. Contenders for joining the S&P 500
included bitcoin-treasury company $Strategy (MSTR.US)$, chipmaker $Marvell
Technology (MRVL.US)$ and social-media platform $Reddit (RDDT.US)$.
It ws another snub for Strategy, thesoftware company formerly known as MicroStrategy that has become a play on
$Bitcoin (BTC.CC)$.
Last week, S&P Dow Jones Indicesannounced that $SanDisk Corp (SNDK.US)$, a maker of computer-storage devices,
was moving to the S&P 500. That change took place days after the
announcement.
The index provider has discretion inchoosing when and how to make any changes, or even to forgo changes, besides
the regularly scheduled rebalances.
Other changes announced Friday includedflooring-materials maker $Mohawk Industries (MHK.US)$ joining the S&P Small
Cap 600 index and social-media company $Pinterest (PINS.US)$ moving up to the
S&P MidCap 400 index.
Carvana's stock has doubled this year, andthe company is viewed as a "true disruptor" of the auto-retailing
industry, with room to grow market share in a fragmented sector. Competition
from the likes of $Amazon (AMZN.US)$'s Amazon Autos is viewed as being far off
in the future, if it all.