Here's what is happening: The S&P 500 is getting rid of its Telecoms sector designation and replacing it with a new Communications Services sector. The title is more accurate to how these companies operate in the 21st century. Also, many firms once grouped together in the Information Technology sector, such as Google parent company Alphabet, Facebook and Twitter, join the new communications class.
For years Netflix, Disney, and Comcast were thought of as consumer discretionary companies. The shuffling now puts them in the same communications sector, making it the fifth largest stock sector in the S&P 500 Index. By contrast, the deleted Telecom sector was the smallest.
The changes may not mean much for the overall market, but for investors using sector exchange traded or mutual funds, they reorganize their portfolios.
Tom Hudson hosts "The Sunshine Economy" on WLRN-FM; @HudsonsView.
Tom Hudson hosts "The Sunshine Economy" on WLRN-FM in Miami.
Commissioner pay, mayoral term limits among issues that will be on Miami Beach ballot
By Allyson Waller
Miami Beach commissioners voted to place six questions before voters in November, including measures on raising commissioners' pay, lengthening the mayor's term limits and naming a new park "Pride Park."
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