At the opening bell Wednesday, US stocks experienced a modest lift on news of a merger between Kraft Foods and Heinz Company. If the merger were to go through, the merged company would create the third largest food company. However, these gains could not be contained, as the government released economic data revealing soft economic expansion. The data revealed two areas of concern: the first is that there was unexpectedly weak consumer purchasing of durable goods, and business investment fell for the sixth straight month in February. This new data could cause economists to lower their first quarter US growth estimates and could have an effect on the timing of the Federal Reserve interest rate hikes.
http://www.reuters.com/article/2015/03/25/us-markets-global-idUSKBN0ML01C20150325
3 Comments
Kraft has been struggling recently with a negative public perception of processed goods. This might have to do with the big organic trend that has been sweeping the country. Also according to the Wall Street Journal, neither company chose a Wall Street bulge bracket-bank as their financial advisor, with Lazard advising Heinz and Centerview Partners advising Kraft.
On a positive note, the article mentions that the weaker dollar has helped lift the price of crude oil which the oil companies have desperately needed.
How many non-overlapping themes does this one article have? It sounds like I’d give it a grade of “R/W” (rewrite) or C- or worse (for a lousy paper late in the term, when you all should know better). In reality I ought to be kinder to the reporter: his editor may have mandated that he/she fill another column-inch….and there’s lots of meaningless filler out there.
When an article is BS, at a minimum note that. However that doesn’t even rate being a 2nd-best strategy. What you should do is look for a better article.
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