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Top Stocks Will See Massive Buying and Selling on S&P Quarterly Rebalance

All indexes rebalance on a quarterly basis as price movement constantly upsets the actual percentage that is supposed to be allocated. With the S&P 500 being the most influential index in terms of what is used by many portfolio managers as a benchmark, the quarterly rebalancing that will happen this Friday often means portfolio rebalancing, especially if they shadow the index to construct their portfolio. Shares will also be rebalanced in the S&P 400 and 600.

A new report from the Quantitative Strategies team at Jefferies says that some of biggest selling action will be in the industrial sector, and the biggest buying in information technology. We screened the Jefferies report for the stocks that will see the most trading on Friday.

Here are some of the top Buys scheduled for Friday:

Facebook Inc. (NASDAQ: FB) will see some gigantic buying on the close Friday. The Jefferies team estimates 19.5 million shares of the social media giant will be bought on the close, totaling $1.808 billion. The shares closed trading on Wednesday at $93.45.

Berkshire Hathaway Inc. (NYSE: BRK-B) is another very high-profile company that will see significant buying. The analysts estimate that a total of 6.6 million shares will be bought on the close for a total dollar amount of $871 million. The shares closed Wednesday at $132.58.

Google Inc. (NASDAQ: GOOGL) is another top technology company that will see significant shares being purchased on the close. The Jefferies team sees a total of 1.2 million shares of the Internet colossus being bought on Friday’s close for a total dollar amount of $732.5 million. The shares closed most recently at $665.52.

Here are some of the top sells scheduled for Friday.

Apple Inc. (NASDAQ: AAPL) has been huge in the news lately with the release of the iPhone 6s, the updated Apple TV and a much larger iPad. The tech giant will see some selling on Friday The Jefferies analysts estimate that 5.7 million shares of the stock will hit the tape. The total dollar amount should be $663.4 million. Apple shares closed at $116.41.

Phillips 66 (NYSE: PSX) is a top energy name that has seen huge insider buying lately. But come Friday the stock will be hitting the sell tape. The Jefferies team expects 7.7 million shares of the stocks to trade at a total dollar amount of $609 million. The shares closed trading Wednesday at $79.19.

US Bancorp (NYSE: USB) is the top financial stock on the list to see big selling. The Jefferies team estimates that 14.1 million shares of the stock will be sold Friday on the close. The total for this sale should come to about $590.1 million. The stock closed trading on Wednesday at $42.36.

We like to remind our readers that these trades are hardly a well-kept secret, and many managers that shadow the index are already putting on trades in front of the action on Friday. However, if you are looking to buy or sell these companies, the added liquidity on Friday’s close could be helpful.

By Lee Jackson


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