Keurig Green Mountain Pops on S&P 500 Invite

By Matt Egan Stocks FOXBusiness


Shares of Keurig Green Mountain (GMCR) cruised 3% higher Monday morning  as Wall Street cheers the company’s invitation to join the S&P 500.

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Late Friday, McGraw Hill Financial’s (MHFI) S&P Dow Jones Indices said the coffee company will replace oil and gas exploration and production company WPX Energy (WPX) in the prestigious index.

The move will take effect after the close of trading on March 21 and will likely force portfolio managers who track the S&P 500 to buy shares of Waterbury, Vt.-based Keurig Green Mountain.

Last week,Keurig Green Mountain announced plans to expand its lineup of Starbucks (SBUX) single-serve products in return for ending the coffeehouse chain’s exclusivity deal.

The changes come after Coca-Cola (KO) acquired a 10% stake in Green Mountain for $1.25 billion in February and announced plans to market a new at-home beverage system created by the coffee roaster.

Keurig Green Mountain shares rallied 3.31% to $117.00 in premarket trading Monday morning, putting them on track to extend their 2014 surge of 50%.

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S&P also announced biotech company Biogen Idec (BIIB) is replacing utility  provider American Electric Power (AEP) in the S&P 100.

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