Index provider ‘baffled’ at how to add a company of Tesla’s size to the S&P 500, says Cramer

first_imgDuring early trading on Tuesday Tesla jumped more than 9%, pushing its market capitalization to $415 billion. This places it among the top ten most valuable companies in the S&P 500.S&P Dow Jones Indices is well aware of the challenge of adding such a large company, and on Monday night said it was considering adding Tesla to the index in two tranches. In a departure from custom, the index provider did not announce who Tesla will be replacing.Tesla’s addition to the benchmark index further concentrates the S&P 500 among just a handful of names, which Cramer said will not sit well young investors.- Advertisement – – Advertisement – Tesla is joining the S&P 500 in December, but given the electric vehicle company’s size, adding it to the index is no easy feat, said CNBC’s Jim Cramer.“I think they’re baffled,” he said Tuesday of the index provider S&P Dow Jones Indices. “I really don’t think they know how to handle this … they can’t knock out the smallest [company from the index], it doesn’t do anything. When they balance this … they almost seem to have to make everything smaller,” he said on “Squawk on the Street.”- Advertisement – – Advertisement – “The S&P 500 is old fashioned to these people,” he said of young investors. He noted that young retail investors, who are more involved in the market than ever before, favor buying individual names that they believe will outperform. “You see a lot of these younger investors say ‘you know what I’m going to pick the best of the best, and this index doesn’t necessarily represent what I want, which is a piece of America,’” he said. “I think the younger people are not fooled … they do like ETFs, but they like to buy individual stocks that they think are going to be right, and that’s been their pattern.”Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.last_img read more

Live Feed: Wellington Regional Tennis… Sumner County football…

first_img Close Forgot password? Please put in your email: Send me my password! Close message Login This blog post All blog posts Subscribe to this blog post’s comments through… RSS Feed Subscribe via email Subscribe Subscribe to this blog’s comments through… RSS Feed Subscribe via email Subscribe Follow the discussion Comments Logging you in… Close Login to IntenseDebate Or create an account Username or Email: Password: Forgot login? Cancel Login Close WordPress.com Username or Email: Password: Lost your password? Cancel Login Dashboard | Edit profile | Logout Logged in as Admin Options Disable comments for this page Save Settings You are about to flag this comment as being inappropriate. Please explain why you are flagging this comment in the text box below and submit your report. The blog admin will be notified. Thank you for your input. There are no comments posted yet. Be the first one! Post a new comment Enter text right here! Comment as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Submit Comment Subscribe to None Replies All new comments Comments by IntenseDebate Enter text right here! Reply as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Cancel Submit Comment Subscribe to None Replies All new comments Follow us on Twitter.last_img read more

Iowa egg producers who euthanized hens can get disposal aid

first_imgDES MOINES, Iowa (AP) – Iowa egg producers who euthanized hens as a result of plummeting demand caused by the coronavirus will be eligible for government payments to cover disposal costs, a state agency announced Monday.The Iowa Disposal Assistance Program has been paying pork producers $40 for each market-ready hog they have been forced to euthanize as a result of supply chain disruptions.Thousands of hogs were killed statewide as processing plants slowed production in April and May due to coronavirus outbreaks.On Monday, the Iowa Department of Agriculture and Land Stewardship said the program would be extended for another round of funding and expanded to benefit egg producers.The department said 70 percent of Iowa egg-laying hen flocks produce for the liquid egg market, which serves restaurants and schools. Demand plummeted as a result of closures that began in March, and the price of liquid eggs dropped by 68 percent. Producers responded by reducing the size of their flocks.Egg producers will be eligible for 25 cents for each hen that they euthanized and disposed of between April 1 and July 20. They must provide proof of disposal and other documentation when they apply beginning Aug. 6.Pork producers will be eligible for payments for hogs and pigs disposed of through July 20.last_img read more