S&P 500 adds Hormel, Ventas; both rise after hours
NEW YORK Feb 24 (Reuters) - Standard & Poor's said on Tuesday it plans to add Hormel Foods Corp (HRL.N) and Ventas Inc (VTR.N) to its flagship S&P 500 stock index .SPX after the close of trading on March 3, replacing American Capital Ltd (ACAS.O) and Jones Apparel Group Inc JNY.N.
Hormel, based in Austin, Minnesota, produces meat and food products including Spam. Ventas, based in Chicago, is a health care real estate investment trust.
American Capital provides financing to businesses, while Jones Apparel owns the Jones New York, Nine West and Anne Klein brands. S&P said the companies rank 499th and 500th in market value among S&P 500 members, with respective market capitalizations of $306 million and $267 million.
Shares of companies often rise when they join the S&P 500 because many portfolio managers try to track the index and are required to buy shares of companies that are included.
In after-hours trading following the announcement, Hormel shares rose 3.3 percent to $33.01, while Ventas shares rose 3.1 percent to $25.02. (Reporting by Jonathan Stempel; editing by Jeffrey Benkoe)