SAN FRANCISCO – Google Inc.’s stock will be added to the Standard & Poor’s 500 index, a long-anticipated rite of passage that lifted the online search engine leader’s recently sagging shares. Standard &Poor’s announced the forthcoming change after the stock market closed Thursday. Google will replace Burlington Resources Inc. in the closely watched barometer March 31. Burlington Resources, a major oil producer based in Houston, is being acquired by ConocoPhillips Inc. in a deal worth about $35.6 billion. Google’s shares gained $1.67 to close at $341.89 on the Nasdaq Stock Market, then soared $30.82, or 9 percent, in extended trading. Before Thursday’s announcement, Google’s market value had dropped by nearly 20 percent so far this year, wiping out about $20 billion in shareholder wealth amid concerns about slowing earnings growth and questions about its often cryptic communications with Wall Street. The inclusion into the S&P 500 provides Google’s stock with an immediate catalyst because so many large mutual funds are based on the index’s composition. Once a stock is added to the index, money managers typically must buy shares as they readjust their portfolios. What’s more, some conservatively managed funds are permitted to invest only in companies that belong to the S&P 500, so Thursday’s move should make Google’s stock available to a larger pool of investors, said David Garrity, director of research for Hapoalim Securities. Now that Google will be in the S&P 500, Garrity said some investors who couldn’t buy Google’s shares before might decide to sell some of their stock in Yahoo Inc. – another Internet icon that is already in the index. “Some of the benefit that Google gets from being in the S&P could come at Yahoo’s expense,” Garrity said. Thursday gave no inkling of that happening. Yahoo’s shares gained $1.08 to close at $31.83 on the Nasdaq, then added another 60 cents, or 1.9 percent, in extended trading. Google’s entrance into the elite club had been considered a foregone conclusion by many investors because its market value had already surpassed many of the nation’s best-known companies. AD Quality Auto 360p 720p 1080p Top articles1/5READ MORE‘Mame,’ ‘Hello, Dolly!’ composer Jerry Herman dies at 88160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!
Powered By Impressive Business WordPress Theme