NEW YORK: The most significant changes to Wall Street’s broad industry sectors since 1999 will take effect Monday, reclassifying many of the hot growth companies that have been nearly synonymous with the “tech” rally that has fueled the stock bull market.While any immediate market impact will be hard to gauge, investors are preparing for volatility in stocks being moved from one industry to another when some investors readjust portfolios.It may affect how mutual fund managers chose stocks and force passively-managed sector exchange traded funds (ETFs) to reallocate billions of dollars.WHAT ARE THE MOST IMPORTANT CHANGES?S&P Dow Jones Indices is reorganizing the Global Industry Classification Standard (GICS).It means so-called FANG stocks – Facebook Inc , Amazon.com Inc , Netflix Inc and Google parent Alphabet Inc – will leave the S&P’s information technology sector .Facebook , and Alphabet will join an expanded S&P telecom group, renamed communications services, along with Twitter Inc . They will accompany AT&T Inc , Verizon Communications Inc and CenturyLink Inc , which made up the old telecommunications services sector .Apple Inc , part of the extended FAANG group, will stay in the S&P technology index. It will account for 20 percent of the index’s market capitalization, up… Read full this story
- UK shuns Moscow Stock Exchange in fresh blow to pariah Putin
- Britain slaps sanctions on Russia’s biggest bank
- Netflix’s share price tanks after it unveils plan for advertising
What sector overhaul means for tech stocks, Wall Street have 240 words, post on www.channelnewsasia.com at September 20, 2018. This is cached page on Vietnam Dance. If you want remove this page, please contact us.