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New Carmel company to boot J.C. Penney off S&P 500

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A new Carmel-based company will replace struggling retailer J.C. Penney Co. on the Standard & Poor’s 500 index, according to a statement released Friday by S&P Dow Jones Indices, which runs the benchmark stock index.

J.C. Penney, which is trying to bounce back from its worst sales year in two decades, will be replaced by electronic security company Allegion, which is being spun off by Irish industrial conglomerate Ingersoll-Rand Plc.

Allegion will have its North American headquarters and most of its executive team in Carmel. Shares in the new company will begin regular trading Dec. 2.

J.C. Penney’s market value fell 37 percent this year, to $2.7 billion, making it “more representative of the mid-cap market,” S&P said.

Allegion, which makes residential and commercial door locks, has a market capitalization of $4.2 billion.

The S&P 500 change will take place after the close of trading on Nov. 29, S&P said. The revisions in the benchmark equity index may prompt money managers to shift holdings to match it. About $5.14 trillion was benchmarked to the gauge, according to the S&P website.

J.C. Penney will bump Aeropostale Inc. from the S&P MidCap 400 Index, and Aeropostale will displace Corinthian Colleges Inc. from the S&P SmallCap 600.

Shares of Plano, Texas-based J.C. Penney have fallen 55 percent this year as the retailer reported quarterly losses in each period since mid-2011, including $489 million last quarter. J.C. Penney was up 32 cents Monday afternoon, to $9.19 a share.

J.C. Penney CEO Mike Ullman, who returned as CEO in April to replace Ron Johnson, has restored promotions and popular private-label brands while ending his predecessor’s remodeling plan. He also raised about $4 billion to try to give the company enough cash to complete a turnaround.

Revenue declines slowed in the quarter ended Nov. 2 and the department-store chain said sales and profit margins would improve during the holiday shopping season.
 

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  • Will JCP rise again?
    I have some stock in JCP and my will says my children will share it. I wonder if there will be anything for them to share. What happened? Just a few short years ago my the stock was jumping by leaps and it was so nice.

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

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