Macy's Downgraded From S&P 500 To SmallCap 600 Index As Company's Market Cap Shrinks To $1.5B

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Retailer Macy's Inc. (NYSE: M) will be removed from the S&P 500 Index later this week, S&P Dow Jones Indices announced late Tuesday.

What Happened

The Cincinnati-based company will instead become a part of the S&P SmallCap 600 Index on Friday.

"Macy's has a market capitalization more representative of the small-cap market space," S&P Dow Jones Indices said in a statement. The retailer's stock is down 70.6% year-till-date and has been reduced to a market cap of $1.5 billion.

United Technologies Corp. (NYSE: UTX), which is merging with Raytheon Co. (NYSE: RTN) to form a new entity Raytheon Technologies Corp. (NYSE: RTX), will remain a part of both S&P 500 and S&P 100 under its new name.

The conglomerate's spinoffs Carrier Global Corp. (NYSE: CARR) and Otis Worldwide Corp. (NYSE: OTIS) will both become a part of the S&P 500 index as well, replacing Macy's and Raytheon Co.

The novel coronavirus (COVID-19) pandemic has significantly impacted the business of retailers, including Macy's. The company on Monday announced it would furlough a majority of its employees as its stores across the United States remain shut, and sales have dropped drastically.

Price Action

Macy's shares closed 8.57% lower at $4.91 on Tuesday and traded another 1.43% lower at $4.84 in the after-hours market.

Photo Credit: Paulo JC Nogueira via Wikimedia.

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