Page 24 - aruba-today-20170222

Wednesday 22 February BUSINESS
A24

Deal hunger sends food stocks higher; US indexes at records

All three indexes are at re- to the food industry.
cord highs after rising nine He added that Unilever’s
times in the last 10 days. shareholders might push
The Russell 2000 index of that company to make a
smaller companies added deal as well.
10.48 points, or 0.7 percent, Kraft Heinz, which is mostly
to 1,410.34, also a record. owned by 3G Capital and
U.S. markets were closed Warren Buffett’s Berkshire
Monday for the Presidents Hathaway, has a reputa-
Day holiday. tion for slashing costs to
Kraft Heinz and Unilever make bigger profits.
both slumped after Kraft Mondelez, which was once
withdrew a $143 billion of- part of Kraft, climbed 5.8
fer to buy its rival. Unilever percent and J.M. Smuck-
said the offer was too low er rose 4.4 percent, while
and the companies said cereal makers General
Kraft Heinz was giving up its Mills and Kellogg gained 3
effort. Unilever, the maker percent and 2.5 percent,
of Hellman’s, Lipton and respectively. Household
Knorr, declined $3.66, or goods makers Colgate-Pal-
7.5 percent, to $44.87. Kraft molive, Kimberly-Clark and
Heinz, which owns brands Clorox all jumped.
including Oscar Mayer, Wal-Mart rose $2.08, or 3
Trader Peter Tuchman works on the floor of the New York Stock Exchange. Stocks again broke Jell-O and Velveeta, gave
records Tuesday as investors came back from a long weekend hungry for deals. up $1.78, or 1.8 percent, to percent, to $71.45 after
(AP Photo/Richard Drew) $94.87. the company said its on-
MARLEY JAY take center stage on Wall highest prices of the day. Grundy, the Jefferies ana- line business surged in the
AP Markets Writer Street. But on Tuesday they Income-seeking investors lyst, said the Kraft Heinz- fourth quarter and it report-
NEW YORK (AP) — Stocks did just that, as investors felt also bought shares of real Unilever talks surprised Wall ed more business in the U.S.
again broke records Tues- the failed Kraft Heinz-Unile- estate investment trusts Street because Unilever during the holiday season.
day as investors came ver sale will be replaced by and utilities. gets most of its revenue Wal-Mart recently bought
back from a long week- other deals. Oreo maker The Dow Jones industrial from household products, web-based retailers Jet.
end hungry for deals. While Mondelez and jam maker average climbed 118.95 not food. With the Unile- com and Moosejaw to
Kraft Heinz and Unilever Smucker made the largest points, or 0.6 percent, to ver talks apparently done, strengthen its online sales,
couldn’t complete a pro- gains. 20,743. The Standard & analysts think Kraft Heinz is which have improved over
posed $143 billion mega- “That’s why you saw the Poor’s 500 index rose 14.22 still interested in buying an- the last two quarters.
merger, food and house- (home and personal care points, or 0.6 percent, to other company and they Online rival Amazon contin-
hold goods makers rose products) companies 2,365.38. The Nasdaq com- are wondering if it will pur- ued to set record highs as it
as investors bet that other move up on Friday and posite gained 27.37 points, sue a different consumer rose $11.37, or 1.3 percent,
deals are coming. you’re seeing some of or 0.5 percent, to 5,865.95. products company or stick to $856.44.q
Companies that make them follow through to-
packaged foods, every- day,” said Jefferies & Co. Top 2 CSX execs retiring, railroad lays off 1,000
day household items and analyst Kevin Grundy.
other consumer goods Stocks built on their gains OMAHA, Neb. (AP) — The month. CSX Corp. an- CSX promoted its head
are usually seen as stable over the last two hours of top two CSX executives nounced both moves Tues- of sales and marketing,
investments and rarely trading to close at their will retire this spring, and day as the railroad faces Fredrik Eliasson, to presi-
the railroad plans to lay pressure from a hedge dent. The company says
off roughly 1,000 man- fund seeking to install the that shouldn’t pre-empt
agement employees next executive who led Cana- discussions with Paul Hilal’s
dian Pacific’s turnaround, Mantle Ridge hedge fund
Hunter Harrison. about Harrison becoming
CSX Chairman and CEO CSX’s next CEO.
Michael Ward and Presi- A CSX spokesman says sev-
dent Clarence Gooden will erance packages will be
both retire at the end of offered to laid-off employ-
May. Previously, Ward had ees. Most of the jobs being
planned to work through eliminated are in Jackson-
2019. ville, Florida.q