- Wall Street Fears Dodd Bill
- Have Loan Losses Peaked for European Banks?
- Dow Industrials at New Highs—But Other Indices Lag
- Risk Trade Is Back On
- HMOs Up Despite Looming House Vote
- What The Street Thinks of The Jobless Report
- Friday It's All About Jobs, Jobs, Jobs
- October Retail Sales—The Good, Bad and Ugly?
- When Good News = Good News
- Retail And Jobs Lift Mood
TRADER TALK RSS FEED
MOST SHARED
- Herbalife Vs. Hedge Funds
- Apple Surpasses Nokia as Top Cellphone Maker by Profits
- AIG CEO Ready to Quit over Pay Constraints: Report
- China Factory Output Leaps to 19-Month Highs
- Toll Brothers: More Contracts Signed, but Sales Down
- Three Things the US Can Do To Stop the Dollar's Decline
- America Is On Sale
- Cramer Jeers J&J, Applauds Abbott
- Beware of 'Trampling Effect' When Market Tops: Manager
- Gold Heading to $1150: Art Hogan
- Starbucks Brews Up Growth
- Farr: An Extended Period—No Fat Lady in Sight
- More Upside if S&P Passes This Number: Market Pro
- Murdoch Lashes Out At Google
- Fighting The Flu Vaccine Critics
- Nov. 10: Unusual Volume Leaders
- Shadow Inventory Dwarfs Loan Mods
More Videos
Trader Talk
Text Size 
Traders are expecting a modest, roughly $4.5 billion buy program near the close. Why?
Anheuser-Busch is coming out of the S&P 500 (bye-bye old friend! It will no longer be traded at the NYSE; InBev trades in Brussels). The market cap of Anheuser-Busch is about $50 billion. Therefore, $50 billion will be disbursed to the shareholders.
Of that, about 11 percent is indexed to the S&P 500. Some of that money will go into medical waste management company Stericycle [SRCL
Loading...
()
] , which is replacing Anheuser-Busch in the S&P 500, but the remainder—roughly $4.5 billion—will be distributed to the other 499 stocks in the S&P 500, the exact amount depending on the market capitalization of each company (the S&P 500 is a market cap weighted index; the higher the market cap, the more the weighting in the index).
That was easy. Here's the hard part: does a buy program necessarily mean the stock market will rise going into the close?
The answer: in calmer markets, it greatly increases the chances that will happen. But in this market, it's quite possible traders will see the extra buyside supply as another good excuse to Sell Into the Rally.
_____________________________
New from CNBC.com:
_____________________________
LATEST FROM TRADER TALK
Questions? Comments?
- Wall Street Fears Dodd Bill
- Have Loan Losses Peaked for European Banks?
- Dow Industrials at New Highs—But Other Indices Lag
- Risk Trade Is Back On
- HMOs Up Despite Looming House Vote
- What The Street Thinks of The Jobless Report
- Friday It's All About Jobs, Jobs, Jobs
- October Retail Sales—The Good, Bad and Ugly?
- When Good News = Good News
- Retail And Jobs Lift Mood
Data is a real-time snapshot *Data is delayed at least 15 minutes