PepsiCo Inc. Chief Executive Officer Indra Nooyi has taken over a coconut-water company, acquired a dairy in Russia and spent millions on a philanthropic marketing campaign. Her next big investment has a more familiar name: Pepsi-Cola.
Shareholders in U.S.-listed companies can thank Standard & Poor’s for making them $1 trillion poorer after the rating firm earlier this month lowered the grade on Treasury securities for the first time to AA+ from AAA. Now, some of the most experienced investors say the stock market losses make no sense.
U.S. stocks rallied, almost wiping out this year’s decline in the Standard & Poor’s 500 Index, amid takeover deals, higher-than-estimated earnings at Caterpillar Inc. and progress in talks to tame Europe’s debt crisis.
Meyer Shields says earnings at Warren Buffett’s Berkshire Hathaway Inc. will increase the most since 2006 this year. He’s also telling investors to sell the shares because the economic recovery is weakening.
U.S. stocks rose, capping the market’s biggest two-week rally since November, after New York- area manufacturing expanded and Europe’s efforts to contain its debt crisis bolstered confidence in the global economy.
Metals, crops and fuel beat stocks, bonds and the dollar for a third straight month, the longest stretch since June 2008, as inflation lifted cotton and cocoa and investors speculated violence in the Middle East and northern Africa will restrain energy supplies.
Commodities sank after China told banks to set aside more reserves in an effort to curb inflation, while the euro gained amid prospects for a financial rescue for Ireland. U.S. stocks advanced after Nike Inc. increased its dividend and earnings at technology companies topped estimates.
Stocks climbed, sending the Standard & Poor’s 500 Index higher for 2010, and the dollar weakened after China’s industrial output surged and regulators gave banks as much as eight years to meet capital requirements.