The S&P 500 Index is moving department store giant Macy’s to a lower level.
The company, which has been struggling amid competition from discounters and online retailers like Amazon, will be removed from the benchmark S&P 500 and shifted to the S&P SmallCap 600 as of Monday. The retailer is being replaced on the larger index by Carrier Global, which is being spun off from industrial conglomerate United Technologies as part of that company's pending merger with Raytheon. Carrier, based in Palm Beach Gardens, Florida, makes refrigeration and fire and security products.
Macy’s had a rough 2019, slipping 42% as the broader market surged. The stock has lost more than 70% of its value so far in 2020 as the virus pandemic shuts down stores and all but halts sales for many retailers. The New York company announced this week it would furlough the majority of its 125,000 employees.
A electronic billboard displays advice on how to cope with the coronavirus in front of a closed Macy's department store in Santa Ana, Calif., Monday, March 30, 2020. Macy's announced Monday is furloughing most of its 125,000 employees because coronavirus-fueled store closures have caused its sales to all but disappear. (AP PhotoChris Carlson)
In midday trading Wednesday, shares traded at $4.68, giving Macy's a market cap of about $1.45 billion.