The S&P 500 is an exclusive club of the 500 biggest companies by market cap on the NYSE or Nasdaq, and the inclusion Friday of three new companies to replace three that are outgoing was a big deal–particularly because EV darling Tesla (NASDAQ:TSLA) wasn’t among those chosen for onboarding.
Because Tesla was given the cold S&P 500 shoulder, its stock is taking a beating.
The market-defying stock is down from $502.8 on September 1st to $354.67 at the time of writing on September 8th. That’s a major culling on a snub that no one expected from the S&P 500 club.
The club booted H&R Block, Kohl’s and Coty, and replaced them with Etsy, Teradyne and Catalent.
Investors will be forgiven for their confusion.
They will also be forgiven for not having ever heard of Teradyne, an industrial automation and robotics company, and Catalent, a pharmaceuticals developer.
And the surprise that a crafting marketplace such as ETSY has been admitted into the club over the Tesla giant is also easy to understand.
For anyone waiting for an explanation, there won’t be one. The S&P 500 doesn’t explain itself.
That said, the club has to decide whether it’s going to go along with market sentiment or beware the hype when it adds new members….CLICK for complete article