Please ensure Javascript is enabled for purposes of website accessibility

After Hours: MarketAxess and Axon Rise Up the S&P Ranks, CrowdStrike CEO Joins HPE's Board

By Eric Volkman - Updated Jun 24, 2019 at 8:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The all-important S&P 500 is about to get a new constituent, and the CEO of a hot tech stock takes a seat.

In contrast to today's standard trading hours, the aftermarket hasn't seen many fresh, stock-moving news items -- which is a big reason why we're not seeing a lot of price leaps for most of the market's significant companies.

Turning to the news that has come in tonight, the S&P 500 index is getting an adjustment, while the CEO of a tech company still new to the market has nabbed a plum outside job. Here's more on both developments.

A miniature bull on top of the return key on a keyboard that says S and P 500.

Image source: Getty Images.

Say hello to the new S&P 500 constituent

Bond market trading platform operator MarketAxess Holdings (MKTX 4.24%) is about to become much more well known. The stock is to be a constituent of the highly influential S&P 500 index, a move announced after market hours today by the S&P 500's parent company, S&P Dow Jones Indices.

MarketAxess is the choice to replace current S&P 500 member L3 Technologies, a communications equipment defense company. Last year, peer company Harris Corp. reached a deal to effectively acquire L3 Technologies in an all-stock arrangement that is expected to close momentarily. Following the absorption of L3 Technologies into Harris, it will cease to be a separately traded stock.

MarketAxess, which is a component of the S&P MidCap 400 index, will ascend to the S&P 500 on July 1. It will be replaced on the S&P MidCap 400 by energy weapons specialist Axon Enterprise (AXON 0.83%), which is a component of the S&P SmallCap 600 index.

For both MarketAxess and Axon, their respective index advancements should garner fresh attention from investors. MarketAxess will also likely attract more interest from the many index funds prowling the market; this effect should be less pronounced in Axon's case. In spite of this, both stocks are trading down slightly in after-hours action.

CrowdStrike's CEO gets a new gig

George Kurtz, co-founder and CEO of rising IT sector star CrowdStrike Holdings (CRWD 4.28%), is now part of a legacy company in the sector. Hewlett Packard Enterprise (HPE -5.85%) said in a press release circulated after market close that Kurtz has taken a seat on its board of directors.

The move comes mere weeks after CrowdStrike's very successful IPO, which saw the cybersecurity solutions provider's stock rocket, surging to nearly twice its IPO price on the close of its first trading day.

Hewlett Packard Enterprise, citing Kurtz's 26 years of experience in the IT business with such companies as McAfee, said that Kurtz's "deep roots in important technology segments including cloud and cybersecurity will bring even stronger market insights to the Board and Company as we continue to further invest in market innovation."

Although joining the board of a famous name in the IT sector confers renown on a person, this doesn't seem to be reflected in CrowdStrike's share price at the moment. Post-market, CrowdStrike stock is trading down by slightly over 1%. The shares of Hewlett Packard Enterprise, meanwhile, are flatlining.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MarketAxess Holdings Inc. Stock Quote
MarketAxess Holdings Inc.
MKTX
$279.31 (4.24%) $11.37
CrowdStrike Holdings, Inc. Stock Quote
CrowdStrike Holdings, Inc.
CRWD
$148.74 (4.28%) $6.10
Axon Enterprise Stock Quote
Axon Enterprise
AXON
$99.40 (0.83%) $0.82
Hewlett Packard Enterprise Company Stock Quote
Hewlett Packard Enterprise Company
HPE
$14.16 (-5.85%) $0.88

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.