What You Need To Know About 2 New S&P 500 Members
Activision Blizzard and United Continental are being added to the S&P 500. They're replacing two buyouts: Pall Corp. is being acquired by Danaher, and Hospira is being acquired by Pfizer. Here's what you need to know about the two new additions: Activision Blizzard earns a 95 IBD Composite Rating. Earlier this month the video game publisher reported better-than-expected second quarter sales and earnings, which shot up 117%. Its big-name games include Call of Duty, World of Warcraft and Guitar Hero. Electronic Arts and Take-Two Interactive are two of its peers. EA is a fellow S&P 500 component. Activision shares gapped up in giant volume, shaking off the sell-off and hitting a new all-time high of 30 intraday. The stock has risen about 47% so far this year. United Continental has an 85 IBD Composite Rating. The carrier met analyst expectations when it reported earnings about a month ago. The airline industry group has come under pressure lately amid a Justice Department investigation into airfare price collusion. Peers Delta Air Lines, American Airlines and Southwest Airlines are already members of the S&P 500. United shares popped in fast turnover, retaking their 50-day moving average. But the stock is still trading below its 200-day line and is more than 20% below its late January peak. Activision is set to join the index after the close Friday, while United Continental will be added after the close next Wednesday.