Netflix, others to join S&P 500

Once upon a time, you couldn't get more blue-chip than Eastman Kodak (EK) and the New York Times Co. (NYT)

Kodak was in the Dow Jones Industrial Average ($INDU) and the Standard & Poor's 500 Index ($INX). The Times company, parent of The New York Times, was a member of the S&P 500.

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Kodak was pushed out of the Dow in in 2004 after 74 years as a Dow component. After Dec. 17, the company, the Times Co. and office-supplies retailer Office Depot (ODP) will move from the S&P 500 to the Standard & Poor's Midcap-400 Index ($MID.X).

Their sin: They're not growing. They'll be replaced by Netflix (NFLX), F5 Networks (FFIV) and Newfield Exploration (NFX), all members of the S&P midcap index now.

At the same time, Standard & Poor's Corp. said late today that Cablevision (CVC) will replace King Pharmaceuticals (KG) in the S&P 500. King will be acquired by Merck (MRK).

Eastman Kodak has been a member of the S&P 500 since the emergence of its modern form in 1957. The New York Times Co. joined the index in 1984. Office Depot went in in 1999.
 
Since the end of 1999, Eastman's shares are down 91.9%. The company's classic photographic film and supplies were superseded by the emergence of digital photography.

The Times Co.'s shares are down 80% since the end of 1999 as the newspaper business was hit by the Sept. 11, 2001, terror attacks, the 2008-09 recession and the emergence of the Internet as a major source of news and information.

Office Depot's strategy of supplying everything from paper clips to computers and office furniture has struggled from management problems and intense competition, especially from Staples (SPLS).

On the other hand, Netflix shares are up more than 2,200% since the company went public in May 2002 and are up nearly 247% in 2010 alone.

F5 chose a difficult year to go public, 1999, but the shares are up more than 7,000% since as the Internet has become critical to commerce around the globe.

And Newfield Exploration is a play in the huge increase in prices for oil and natural gas. The shares are up 261% since the end of 1999.

Three more sets of changes are due.

Corinthian Colleges (COCO), a for-profit education company, regional bank Wilmington Trust (WL) and retailer Coldwater Creek (CWTR) will move from the S&P Midcap index to the Standard & Poor's SmallCap 600 Index ($SML.X).

They will be replaced by natural-gas producer SM Energy (SM), Concur Technologies (CNQR), which makes management software, and East West Bancorp (EWBC), a banking company in Pasadena, Calif.

For those stocks moving up, there will be new buying as money managers who track indexes adjust. Those moving down will see their shares pressured for the same reason.

Examples: Eastman Kodak and the New York Times Co. shares were off 0.6% to $5.28 and 2.2% to $9.74 after hours today. Netflix and F5 were up 5.5% to $201.50 and 5.2% to $146.10.