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Standard & Poor's Announces Index Changes

Strategic Insights

— 1 min read

The S&P 500 Index will undergo changes following the merging of First Chicago Corp. and NBD Bancorp Inc. into First Chicago NBD Corp., which will be listed on the index alongside Humana Inc. This update is set to be implemented after the close of trading on November 30, 1995, marking a significant shift in the composition of the widely followed stock market benchmark.

Key Takeaways:

  • Standard & Poor's will replace First Chicago Corp. and NBD Bancorp Inc. with First Chicago NBD Corp. and Humana Inc. in the S&P 500 Index.
  • The merger of First Chicago and NBD Corp. to form First Chicago NBD Corp. is expected to close on November 30, 1995.
  • First Chicago NBD Corp. will be headquartered in Chicago and added to the S&P 500 Money Center Banks industry group.
  • Humana Inc. will be added to the S&P 500 Health Care (HMOs) industry group, and the company is a provider of managed healthcare products through HMOs and PPOs.
  • The S&P 500 Index is widely considered a key barometer of stock market activity and performance benchmark for professional money managers, with over $300 billion currently indexed to it.
  • First Chicago Corp. and NBD Bancorp Inc. will be removed from the index, and First Chicago NBD Corp. will maintain the previous scores and rankings.
  • Humana Inc. will bring its managed healthcare expertise to the S&P 500 Health Care (HMOs) industry group, further diversifying the index's offerings.

Statistics:

  • The S&P 500 Index will undergo changes on November 30, 1995, following the merger of First Chicago and NBD Corp.
  • First Chicago NBD Corp. will be listed on the index, and the company provides banking services.
  • Humana Inc. will bring its managed healthcare presence to the S&P 500 Health Care (HMOs) industry group.
  • The S&P 500 Index has over $300 billion indexed to it, making it a significant benchmark for investors and analysts.
  • The index changes do not reflect opinions on the investment merits of the companies involved.

Sources:

  • "Standard & Poor's will replace First Chicago Corp. (FNB) and NBD Bancorp Inc. (NBD) in the S&P 500 Index" - Business Wire, November 21, 1995
  • "Elliott Shurgin, 212/208-8709 or Albert Neubert, 212/208-8716" - Standard & Poor's
  • The Equity Services Group of Standard & Poor's, a division of the Financial Information Services Group of The McGraw-Hill Companies.

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