Why Lululemon Stock Is Stretching Higher Monday

Lululemon Athletica Inc. LULU shares are trading higher Monday after it was announced the stock will join the S&P 500.

The Details:

It was announced after the market close on Friday that Lululemon will replace Activision Blizzard Inc. ATVI in the S&P 500 effective prior to the opening of trading on Wednesday. 

Microsoft Corporation MSFT acquired Activision Blizzard in a $69 billion transaction which had been under the intense scrutiny of international antitrust officials for more than a year and finally closed on Friday. 

LULU shares are moving higher on heavy trading volume as investors react to the news of the ticker's inclusion in the S&P 500.  

According to data from Benzinga Pro, more than 4.2 million shares have already been traded in the session, nearly four times the stock's 100-day average volume of 1.235 million shares.

Related News: What's Going On With Lucid Group Stock?

LULU Price Action: According to Benzinga Pro, Lululemon Athletica shares are up 9.5% at $413.89 at the time of publication.

Image: Courtesy of Lululemon Athletica, Inc.