Why Hostess Brands Stock Jumped 10% at the Open Today
Shares of Hostess Brands (NASDAQ: TWNK) rose a quick 10% at the open on Jan. 27. The maker of packaged snacks, like the iconic Twinkies that are referenced in its stock ticker, didn't report any news of note. However, S&P Dow Jones Indices made a change that will have a direct impact on who owns the company's stock.
According to S&P Dow Jones Indices, Hostess Brands will be added to the S&P 600 SmallCap Index on Feb. 1. In the grand scheme of things this isn't a huge deal and it changes absolutely nothing about the company's overall business. However, there's a ripple effect from this announcement with regard to the stock.
Image source: Getty Images.
Source Fool.com