S&P 500 Drops J.C. Penney After Staggering Losses

J.C. Penney (NYSE: JCP) is being dropped from the Standard & Poor's 500 Index after its plummeting value made it "more representative of the mid cap market," Standard & Poor said in a statement. The retailer is being replaced by Allegion Plc, a soon-to-be-public spinoff of Ingersoll-Rand Plc (NYSE:IR), which provides security for homes and businesses.

JCP had been an original member of the S&P 500 since it was constructed in 1957 as an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors.

Effective Nov. 29, J.C. Penney will join the S&P MidCap 400, replacing struggling teen retailer Aeropostale (NYSE: ARO), which will move to the S&P SmallCap 600.

Last week, J.C. Penney reported another quarterly loss due to tumbling sales, continuing the company's downward spiral that began during an ill-fated transformation under former CEO Ron Johnson, who was fired in April.

Shares of J.C. Penney, which have already plummeted 55 percent so far this year, initially shed another 1 percent Monday morning on the news.

For more see:
This Wall Street Journal article
This Bloomberg article

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