CNET News.com: "Google shares jumped 7.9 percent in morning trading Friday, following an announcement by Standard & Poor's that the search engine would be added to the S&P 500 Index.
Google, which has seen its stock more than double in the past year, will join the S&P Index on March 31, after the market's close. Investors are expected to cheer, given that index funds will be snapping up Google shares.
Bear Stearns analyst Robert Peck predicted that Google would rank within the top 30 companies in the index of blue-chip stocks. Joining the S&P 500 will lock up about 7 percent of Google's stock in index capital, 'which we believe could effectively reduce the trading supply of the stock,' Peck wrote in a research note Friday. 'As supply decreases, the equilibrium price should increase.' "
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