CarMax to leave the S&P 500 to give way to this famous industrial company's spinoff

By Claudia Assis

Another company, also a spinoff, will replace Eastman Chemicals, the index provider says

A CarMax store in Colma, Calif. CarMax no longer represents the large-cap space, S&P Dow Jones said.

Two newcomers that will soon be spun off from a couple of industrial heavyweights are part of the latest wave of change at the S&P 500 index, index provider S&P Dow Jones Indices said late Monday.

Solstice Advance Materials Inc. (SOLSV) will replace CarMax Inc. (KMX) in the S&P 500 SPX before the open on Friday, S&P Dow Jones said. S&P 500 constituent Honeywell International Inc. (HON) is spinning off Solstice in a deal expected to close Oct. 30.

Honeywell will remain in the S&P 500 and S&P 100 after the deal, the index provider said. CarMax no longer represents the large-cap space, it said.

Similarly, Qnity Electronics Inc. will replace Eastman Chemical Co. (EMN) in the S&P 500 before the open on Nov. 4, S&P Indices said. That move is also thanks to a spinoff, this time involving S&P 500 constituent Dupont de Nemours Inc. (DD). That deal expected to close on Nov. 3. And, likewise, the post-spinoff chemicals company Dupont de Nemours will remain in the S&P 500.

A place in the S&P 500 is a sought-after spot for companies, as it exposes their stock to a broad swath of active investors, which may have restrictions on companies too small to invest in, and to countless passive funds that track the benchmark automatically.

Companies need to meet market capitalization threshholds and certain profitability standards. An index committee chooses which companies become members, taking into consideration factors beyond market capitalization.

-Claudia Assis

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(END) Dow Jones Newswires

10-27-25 1806ET