American Airlines Group will rejoin the S&P 500 on Friday, Dow Jones announced after the market closed yesterday.
The Fort Worth-based carrier, which trades under the ticker AAL on the Nasdaq exchange, will be replacing Allergan Inc. Allergan is being acquired by Actavis.
Shareholders reacted positively to the news, as shares of AAL rose almost 6 percent by midday, trading around $53.20 a share.
J.P. Morgan analyst Jamie Baker told investors he expected American being added to the S&P 500 will drive “close to 80 million shares of incremental demand.”
“American has not been shy over the past year in repeatedly emphasizing its candidacy for inclusion in the S&P 500,” Baker wrote in a research note. “The 1Q15 timing is likely to exceed most expectations, in our view.”