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J.C. Penney dropped from S&P 500 index

[November 23, 2013]  NEW YORK (AP) — J.C. Penney is getting booted from the Standard & Poor's 500 index after losing more than half of its market value this year.

The retailer is being replaced by Allegion Plc, a provider of security for homes and businesses, according to a statement released Friday by S&P Dow Jones Indices, which runs the S&P 500 index.

The retailer's downward spiral began during an ill-fated transformation under former CEO Ron Johnson, who was fired in April after 17 months on the job.

The company's stock has rebounded during the last month. There are signs that the retailer's business is stabilizing under Chief Executive Mike Ullman. However, the change isn't enough to keep J.C. Penney in the index.

J.C. Penney's stock has fallen $10.84, or 55 percent, to $8.87 this year.

The stock has advanced 18 percent this month after falling to $6.42 on Oct. 21.

Johnson's plan included getting rid of coupons and most sales in favor of everyday low prices, bringing in hip brands and remaking outdated stores. But the changes that were meant to attract younger, wealthier shoppers, wound up turning off its loyal middle-income, middle-age customers who favor sales and basic merchandise like loose-fitting khakis

J.C. Penney will join the S&P MidCap 400. The change will become effective after the stock market closes on Nov. 29.

[Associated Press; STEVE ROTHWELL, AP Markets Writer]

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