The S&P 500 Adds 2 Spinoffs to the Index. Here’s Who Is Leaving

The S&P 500 will add two companies spun off from index components. That means two other companies have to go.

Monday, S&P Global announced that Honeywell International spinoff Solstice Advanced Materials will replace CarMax in the S&P 500. DuPont de Nemours spinoff Qnity Electronics will replace Eastman Chemical.

CarMax and Eastman will be replacing USANA Health Services and Caleres in the S&P Small Cap 600.

Both DuPont and Honeywell will remain in the S&P 500.

Having the spun-off entities in the index should reduce some selling pressure on Qnity and Solstice. If they weren’t added to the index funds that track the S&P 500, or use the index as a benchmark, would be more likely to sell.

Shares of CarMax were flat in after hours trading. Shares of Eastman Chemical were down 1.5%. Honeywell and DuPont stocks were flat.

Shares of USANA Health Science were down 4% and shares of Caleres were down 1.5%.

Solstice, CarMax, and USANA changes will happen on Friday, Oct. 31. Qnity, Eastman, and Caleres changes will happen on Tuesday, Nov. 4.

Honeywell shareholders are slated to get one share of Solstice for every four shares of Honeywell held. Solstice, which is trading ”when issued” will trade under the stock symbol “SOLS.”

DuPont shareholders will receive one share of Qnity for every two shares of DuPont held. Qnity, which is also trading on a when-issued basis, will trade under the stock symbol “Q.”