The Daily Times Newspaper

Kellogg Rises on Wall Street Recovering After Split


Kellogg was one of the big winners on the stock exchanges in New York on Tuesday with a price gain of 4 percent. The food producer wants to split into three separate listed companies, which focus separately on breakfast cereals, plant-based foods and snacks.


The division of the group should be completed by the end of next year.

Investors also returned from a long weekend in good spirits and went on a bargain hunt. Last week, Wall Street had its worst week on the stock market since the start of the corona crisis due to fears of a recession. The fall followed the sharp rate hike by the Federal Reserve, which indicated that it was accepting an economic contraction and higher unemployment to combat high inflation.

Shortly after opening, the Dow-Jones index was 1.4 percent higher at 30,313 points. The broad S&P 500 climbed 1.9 percent to 3745 points and tech gauge Nasdaq rose 2.3 percent to 11,050 points. On Monday, US markets were closed for Juneteenth, the commemoration of the end of slavery in the United States.

Budget airline Spirit Airlines climbed more than 7 percent after a new increase in the takeover bid by peer JetBlue. JetBlue (minus 0.3 percent) has been trying to thwart the proposed merger between Spirit and Frontier Airlines for some time, but Spirit’s board continues to resist its competitor’s advances.

Twitter rose 1.2 percent. Tesla CEO Elon Musk says there are still several “unsolved issues” surrounding the Twitter takeover. For example, the billionaire stated that he was still waiting for a solution to the number of spam accounts on the social media platform. Musk, who wants to buy Twitter for $44 billion, said it is also questionable whether the debt financing of the deal will come through and whether Twitter shareholders will vote for the acquisition.

Tesla advanced 5.4 percent. Musk, who is attending the Qatar Economic Forum in Doha, also said he plans to cut the electric car maker’s total workforce by 3 percent to 3.5 percent over the next three months. He does expect that the workforce will be higher in a year than it is now.

Google parent company Alphabet was 3 percent higher. The German competition authority Bundeskartellamt is investigating whether Google is unfairly hindering competition with its map services. The regulator says it has indications that Google Maps restricts access to, for example, location data, the search function or Google Street View for other developers of digital maps.

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