Stocks Start Week at New Highs 02/21 09:24
Stocks are breaking records again Tuesday. Energy companies are rising more
than the rest of the market. Consumer goods giant Kraft Heinz is falling after
it withdrew a $143 billion offer for competition Unilever, but several other
food and household goods makers are rising as investors bet Kraft will make an
offer for one of those companies instead.
NEW YORK (AP) -- Stocks are breaking records again Tuesday. Energy companies
are rising more than the rest of the market. Consumer goods giant Kraft Heinz
is falling after it withdrew a $143 billion offer for competition Unilever, but
several other food and household goods makers are rising as investors bet Kraft
will make an offer for one of those companies instead.
KEEPING SCORE: The Dow Jones industrial average climbed 93 points, or 0.5
percent, to 20,717 as of 10 a.m. Eastern time. The Standard & Poor's 500 index
rose 10 points, or 0.4 percent, to 2,361. The Nasdaq composite gained 24
points, or 0.4 percent, to 5,862. All three indexes are at record highs, and
the S&P 500 and Nasdaq have risen for eight of the last nine days. The Russell
2000 index of smaller companies added 8 points, or 0.6 percent, to 1,408, which
put it in line for a record as well.
U.S. markets were closed Monday for the Presidents Day holiday.
LET'S CALL THE WHOLE THING OFF: Kraft Heinz and Unilever both slumped after
Kraft withdrew a $143 billion offer to buy its food and consumer goods rival.
Unilever said the offer was too low and the companies said Sunday that Kraft
Heinz was giving up its effort. Kraft owns brands including Oscar Mayer, Jell-O
and Velveeta while Unilever sells products such as Hellman's, Lipton and Knorr.
Kraft Heinz gave up $3.74, or 3.9 percent, to $92.91 and Unilever declined
$4.14, or 8.5 percent, to $44.39.
LOOKING FOR LOVE: Big packaged food companies have been trying hard to cut
costs and find new markets, and analysts and investors think Kraft Heinz is
still interested in buying another food or consumer goods company. Oreo maker
Mondelez rose $1.88, or 4.4 percent, to $44.38 while cereal makers Kellogg
added $1.46, or 2 percent, to $74.36 and General Mills gained $1.59, or 2.7
percent, to $60.82. Household goods maker Colgate-Palmolive picked up $1.18, or
1.6 percent, to $73.16.
CRAVING SOME CHICKEN: Restaurant Brands International, the company that owns
the Burger King and Tim Hortons brands, agreed to buy Popeyes Louisiana Kitchen
for $1.8 billion. Shares of Popeyes jumped from about $66 to $70 and then fell
back again as reports about the deal swirled last week. Restaurant Brands
agreed to pay $79 a share, and Popeyes climbed $12.71, or 19.2 percent, to
$78.83. Restaurant Brands stock jumped $3.37, or 6.3 percent, to $57.27.
AMAZON WHO? Wal-Mart jumped $1.89, or 2.7 percent, to $71.26 after the
company said its online business surged in the fourth quarter and it reported
more business in the U.S. during the holiday season. Wal-Mart's profit fell as
it spent more money on its e-commerce operations and its stores, but investors
have been hoping the company's online sales would take off. It reported better
online sales in the third quarter as well, and recently bought web-based
retailers Jet.com and Moosejaw to strengthen its sales.
Online rival Amazon continued to set record highs as it rose $9.63, or 1.1
percent, to $854.70.
ENERGY: Benchmark U.S. crude oil jumped $1.03, or 1.9 percent, to $54.43 per
barrel in New York. Brent crude, used to price international oils, added 88
cents, or 1.6 percent, to $57.06 a barrel in London.
BONDS: Bond prices fell. The yield on the 10-year Treasury note rose to 2.45
percent from 2.42 percent.
CURRENCY: The dollar rose to 113.62 yen from 112.93 yen late Friday. The
euro sank to $1.0543 from $1.0607.
BETTER GROWTH: A survey indicated that the economy of the 19-country
eurozone is growing at its fastest pace in nearly six years. The gauge of the
manufacturing and services sectors for February showed both stronger business
activity as well as better hiring. In Japan, a measure of manufacturing
activity rose to its highest level since 2014. Both surveys showed inflation
pressures growing, a welcome development for markets that have suffered
dangerously low inflation or even falling prices in recent years.
OVERSEAS: Germany's DAX advanced 0.9 percent while the French CAC 40 rose
0.5 percent. In Britain, the FTSE 100 retreated 0.1 percent. Tokyo's Nikkei 225
advanced 0.7 percent and the Hang Seng of Hong Kong retreated 0.8 percent. The
Kospi in South Korea gained 0.9 percent.