Dollar General to Join S&P 500, Replacing Cooper Industries

   By Nathalie Tadena 
 

Standard & Poor's said it will add discount chain Dollar General Corp. (DG) to its S&P 500 index, replacing Cooper Industries PLC (CBE), after Eaton Corp. (ETN) completes its acquisition of the electrical products maker.

Shares of Dollar General, which is set to join the S&P 500 after the close of trading on Friday, jumped 3.4% to $51 after hours. The shares of companies joining the S&P 500 often rise because many portfolio managers try to track the index. To do that, they must buy shares of the companies that become part of the index.

Dollar General, a retailer of low-cost goods, has shown higher profits in recent quarters due to new stores being opened and better-known brands of merchandise being added to its shelves. The company has also been trying out opening bigger stores and refurbishing old ones.

In September, the company reported its fiscal second-quarter earnings surged 47% as it recorded strong sales across all of its segments, including a double-digit increase in consumables sales.

Shares have climbed 20% so far this year, through the close.

-Write to Nathalie Tadena at [e-mail]

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