United Continental, Activision to Join S&P 500

By Josh Beckerman 

United Continental Holdings Inc. will join the S&P 500 index, becoming the fourth airline in the benchmark index.

Inclusion in the S&P 500 is typically a boon for a stock as index-tracking funds buy shares. In after-hours trading, United was up 6.6% to $56.88.

Before Delta Air Lines Inc.'s 2013 inclusion, Southwest Airlines Co. was the only airline in the S&P 500.

In March, American Airlines Group Inc. was added to the S&P 500, less than a year and a half after it combined with US Airways and emerged from bankruptcy protection. J.P. Morgan analyst Jamie Baker said at the time that the inclusion was a sign of American's "resurgence" and predicted United would join the index this year.

Airlines have benefited from years of restructuring and consolidation, a tighter focus on profitability and a sharp decline in the price of oil.

S&P Dow Jones Indices also said Activision Blizzard Inc. will join the S&P 500. Earlier this month, the videogame company raised its full-year outlook as digital sales and China expansion contributed to second-quarter revenue growth.

Activision shares rose 6.8% after hours to $29.84.

United will join the index after the close of trading Wednesday, while Activision will be added after the closing of trading Friday. Leaving the index are Pall Corp., which is being sold to Danaher Corp., and Hospira Inc., which is being acquired by Pfizer Inc.

Write to Josh Beckerman at [e-mail]

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(END) Dow Jones Newswires

August 27, 2015 18:57 ET (22:57 GMT)

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