Market Minute: Twinkie Return Could Cost Rival Snack Maker Flowers
Boeing is set to bounce back, and we look at the Twinkie effect on the market.
The major averages all rallied last week, with the Dow Industrials and the S&P 500 ending at record highs. The Nasdaq soared 3.5 percent on the week; it has gained ground in 12 of 13 sessions.
Boeing (BA) could recoup some of Friday's big loss, as an investigation shows the fire aboard a 787 Dreamliner in Great Britain was not related to the lithium ion battery that caused Boeing to ground the fleet earlier this year. However, there's still uncertainty about what did cause this latest mishap. The focus right now is on the lightweight carbon fiber skin of the plane.
Twinkie fans are thrilled about the return of the snack food to store shelves today, but not everyone is celebrating. Flowers Foods (FLO), which makes a Twinkie rival -– Tastykakes –- could suffer. Tastykake sales have jumped almost 20 percent over a year ago, as desperate Twinkie fans sought an alternative.
Citigroup (C) kicks off a huge week for corporate earnings, posting better-than-expected profit and sales. Analysts are especially interested to hear what the company has to say about the economic outlook in Mexico and other emerging markets.
The three entertainment giants that own Hulu have decided not to sell the television streaming site after all. Comcast (CMCSA), Walt Disney (DIS) and 21st Century Fox (NWS) will pump an extra $750 million dollars into Hulu. Among the companies that had been interested in buying it: Time Warner Cable (TWC), Yahoo (YHOO), DirecTV (DTV) and Kohlberg, Kravis Roberts.
And we're seeing more consolidation in the telecom industry. AT&T (T) has agreed to acquire Leap Wireless (LEAP) for $1.2 billion dollars. The per share price represents an 88 percent premium over Leap's closing price. Leap provides prepaid wireless service under the Cricket brand. The deal also gives AT&T more wireless spectrum and access to the low-cost wireless market.
-Produced by Drew Trachtenberg
