August 20, 2018

Pepsi buys SodaStream; Stocks rising; Estee Lauder earnings

1. Pepsi makes a deal: PepsiCo is buying one of the world's top sparkling water brands, SodaStream, for $3.2 billion.

The move -- which was unanimously approved by the boards of both companies -- will boost Pepsi's efforts to shift from its traditional soft drinks business into healthier options.

SodaStream's products are marketed as a healthy alternative to sugary sodas. This fits Pepsi's goal of "making more nutritious products while limiting our environmental footprint," Pepsi CEO Indra Nooyi said in a statement.

2. Global stock market overview: US stock futures were holding steady.

European markets rose in early trading, with mining companies among the top gainers.

Most Asian markets ended the day with gains. The Hang Seng in Hong Kong was a standout performer with a 1.4% rise.

The Dow Jones industrial average jumped 1.4% last week and S&P 500 advanced 0.6%. The Nasdaq dipped 0.3%.

3. Earnings: Estee Lauder will release earnings before the open.

It's a big week for retailers, with earnings reports expected in the coming days from Target, Kohl's, Ross, Gap, Foot Locker and TJ Maxx owner TJX.

Wall Street analysts expect another strong round of corporate earnings, similar to last week. Americans are spending more because of low unemployment and a booming economy.

4. Greece is done with bailouts: After eight years and hundreds of billions in loans, Greece is putting its bailout days behind it.

The country on Monday officially exited the last of three enormous rescue programs that saved it from going bust and abandoning the euro. The bailouts from the International Monetary Fund, the European Central Bank and the European Commission came at a huge cost that will still be felt for years to come.

IMF Managing Director Christine Lagarde cautioned last month that "greater reform efforts remain key to an economic recovery and lasting growth."

She said the Greek government still needs to improve how it collects taxes, do a better job of clearing out unqualified civil servants and urgently revamp its privatization program.

5. Coming this week: Monday — Estee Lauder earnings Tuesday — JM Smucker, Toll Brothers, Kohl's and TJX earnings Wednesday — Target, Lowe's and L Brands earnings Thursday — Alibaba, HP, Ross Stores and Gap earnings, US tariffs on 279 Chinese products take effect Friday — Foot Locker earnings, Federal Reserve chairman Jerome Powell speaks at the Economic Policy Symposium in Jackson Hole

Free E-Newsletters

Sign up now for our daily and weekly
e-newsletters! Click Here

Today's Poll Who will be Connecticut’s next governor?<>
Most Popular on Facebook
Copyright 2017 New England Business Media