Russell Indices Rebalance Today

As if the "well-contained subprime mortage" issue wasn’t adding enough volatility, today is the Russell Indices rebalancing.

Newly re-constructed Russell indices (Global, 1000, 2000, 3000 and Microcap) will take effect after the the NYSE close at 4pm. Based on preliminary Russell information, 154 NYSE-stocks will be added or deleted to the indices.

This tends to play a little havoc with prices, above and beyond today’s volatility.

We most recently looked at the S&P500 trivia on the occasion of their 50th anniversary. Here is some Russell trivia:

• The Russell 3000 (combined market cap) reflects about 98% of the investable U.S. equity universe, increased more than $3 trillion (from $15.3 to $18.5 trillion).

• The Russell Global Index includes more than 10,700 stocks from 63 countries.

• Countries with the largest number of additional companies joining the index include Australia (109), the United Kingdom (93), Hong Kong (92), Canada (90) and India (66).

• There are 277 "additions" for the Russell 3000 — more than last year’s 237 additions, but far less than the 10-year average of 405.

• A third of this year’s additions are in two sectors: financial services (57) and health care (48).

• Sector changes (weighting):
    -Energy services sector will increase (3.9% to 4.6%)
    -Health care sector will decline (12.1% to 11.9%).
    -Financial services (22.4%) and Consumer discretionary (13.4%) are the largest sectors.

• Turnover is between 2% and 2.5%,

• A total of 128 IPOs will join the Russell 3000 this year; In 2006 new IPO adds = 122; In 2003, it was = 28.

•  Of the 310 companies going into the Russell Microcap Index, 67 are dropping into the index from the Russell 3000.

• 184 companies will completely leave the Russell’s index universe entirely.

The final membership lists for the Russell 3000, Russell 2000 and Russell 1000® will be posted June 25.

UPDATE: June 24, 2007 7:11am

Paul points to this ITG chart, showing a very modest number of adds and deletes for the Russell 2000:

Chart_hist_add_del

>

Source:
Russell Set to Restock U.S. and Global Indexes
Tacoma, WA — June 11, 2007
http://www.russell.com/News/Press_Releases/PR20070611_US.asp

Category: Index/ETFs, Investing, Trading

Asset Manangement/Research Website Design

Category: Investing, Trading, Web/Tech

LEIs: Is the Economy Poised to Expand?

Category: Data Analysis, Economy, Employment, Psychology

Updating the Blog (again)

Category: Weblogs

How Might Subprime Issues Unravel?

Category: Derivatives, Hedge Funds, Psychology, Real Estate

Agflation !

Category: Commodities, Economy, Federal Reserve, Inflation

Crude Remains Strong Despite Inventory Build

Category: Commodities, Energy, Index/ETFs, Psychology, War/Defense

Home Depot has Money for Buybacks, but not Service?

Category: Corporate Management, Retail

Inflation Consensus?

Category: Commodities, Federal Reserve, Fixed Income/Interest Rates, Inflation, Psychology

Rocco DeLuca & The Burden

I_trust_you_to_kill_me
Rocco DeLuca & The Burden
have put out the most interesting new rock album I’ve heard in some time: I Trust You To Kill Me.

Their sound is original — jangly roots-rock romp laced with bluegrass
and countrified leanings.

I agree with the reviewer who wrote that their bluesy debut album "fairly vibrates on DeLuca’s Dobro steel guitar and throaty wail."

DeLuca careens from influence to influence, paying homage to his predecessors and then going a step further.

The music is flavored with dollops of Jeff Buckley, Coldplay and
most of all, Bron Y-Aur Stomp Led Zeppelin.

I Trust You To Kill Me is one of those rare discs where there in not a single weak cut on the CD.

The band’s Myspace page has four songs to stream.

The band has been opening for the likes of Ben Folds and John Mayer.  The next area show I could find is
Tue Jul 31st 2007, Bowery Ballroom, NY

~~~

Videos below

Read More

Category: Digital Media, Music