Welcome to Seeking Alpha's Wall Street Lunch.

Our afternoon update on today's market action news and analysis.

Good afternoon.

Today is Tuesday, July 11th, and I'm your host, Kim Kahn. Our top story so far in today's session.

The NASDAQ 100 is conducting a special rebalancing this month after the Mega Cap rally this year has made the go-to growth index even more top-heavy.

Unlike a reconstitution, where stocks are removed or added, rebalancing changes the weights of

an index and their stock component percentages.

The NASDAQ has only conducted one of these special rebalances twice in the past.

In December 1998 and May 2011, it's triggered if the aggregate total of all stocks with

individual weights above 4.5% in the index tops 48%.

The 2023 rebalance was driven by Tesla's rally a week ago, which pushed the constituents, Tesla, Microsoft, Apple, Alphabet, Invidia, and Amazon

above 48% to 55%. Their collective weight will go down to 40% in the rebalancing.

The rebalancing names will be announced on July 14th,

with the rebalancing itself happening on July 21st, ahead of trading Monday, July 24th.

Ahead of that, Wells Fargo says there will be opportunities for

short-term traders as certain stocks are up-sized or down-stized.

Analysts Chris Harvey notes that in 2011, in the 10 days ahead of the effective rebalanced

date, the 10 most upsized stocks returned an average of 3.9 percent, while the 10 most

downside names averaged 0.2 percent compared with the total index return of 2%.

The most downsized stocks will be the mega caps mentioned above.

But what about the stocks getting a waiting boost?

Among them are Starbucks, Gilead Sciences, and analog devices according to Wells Fargo.

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