Market News: Annies, Avon Products, Pinnacle Foods

Market News: Annies, Avon Products, Pinnacle Foods
market news

The stock markets in the United States declined as investors are becoming more concern about the possibility that the Federal Reserve would increase the interest rates earlier than expected.

The Dow Jones Industrial Average (DJIA) dropped 0.56%; the S&P 500 fell $0.65%, and the NASDAQ went down 0.87%.

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In a telephone interview with Bloomberg, John Manley, chief equity strategist at Wells Fargo Funds Management commented, “There are still a number of people who fear the Fed will raise rates too soon, but I don’t think there’s anything to be gained by being early in raising interest rates.”

Manley added that the United States and the world will be dragged to another recession if the Federal Reserve decides to tighten too soon.

The Federal Reserve is monitoring the improvement of the economy. The U.S. gross domestic product (GDP) increased more than anticipated in the second-quarter due to gains in business investment. However, the Department of Labor reported that the economy added fewer jobs than expected in August.  Economists anticipated that the number of people who filed for unemployment benefits this week will be lesser, and the retail sales would be stronger.

Rick Rieder, chief investment officer at BlackRock, Inc. (NYSE:BLK) stated that the improvement of the labor market and inflation could prompt the Federal Reserve to increase the interest rates.

U.S. Markets

  • Dow Jones Industrial Average (DJIA)- 17,014.77 (-0.56%)
  • S&P 500- 1,988.48.81 (-0.65%)
  • NASDAQ- 4,552.29 (-0.87%)
  • Russell 2000- 1,159.05 (-1.13%)

European Markets

  • EURO STOXX 50 Price EUR- 3,245.43 (-0.68%)
  • FTSE 100 Index- 6,829.00 (-0.08%)
  • Deutsche Borse AG German Stock Index DAX- 9,710.70 (-0.49%)

Asia-Pacific Markets

  • Nikkei 225- 15,749.15(+0.28%)
  • Hong Kong Hang Seng Index- 25,190.45 (-0.20%)
  • Shanghai Shenzhen CSI 300 Index- 2,445.22 (-0.16%)

Stocks in Focus

The stock price of Annies Inc (NYSE:BNNY) surged more than 37% to $46.10 per share after General Mills, Inc. (NYSE:GIS) agreed to acquire the natural and organic food company for $820 million. The shares of General Mills closed at $53.17 per share, down by 0.64%.

The shares of Avon Products, Inc. (NYSE:AVP) dropped more than 3% to $13.17 per share after announcing that Kimberly Ross will step down from his position as chief financial officer effective October 2. Ross will join Baker Hughes Incorporated (NYSE:BHI). Analysts at Citigroup Inc (NYSE:C) downgraded their rating for Avon Products to Neutral and lowered their price target to $15 per share.

Pinnacle Foods Inc (NYSE:PF) declined more than 4% to $31.99 per share after disclosing that its shareholders affiliated to The Blackstone Group L.P. (NYSE:BX) plans to sell 15 million shares in the company.

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