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Shares dipped slightly on Wednesday morning, with Nvidia rebounding 2.5% in premarket trading after a four-day losing streak. The Dow Jones Industrial Average rose 0.3% ahead of a Federal Reserve interest rate decision, while notable stocks like Amazon and Apple reached new highs. IBM and BlackRock are nearing key buy points, while Tesla faced a decline after recent gains.
Dow futures remained stable as traders anticipated the Federal Reserve's interest rate decision following a nine-day losing streak for the index, its longest since 1978. With a 95% chance of a quarter-point rate cut, investors are also focused on Fed Chair Jerome Powell's press conference for future guidance. Market performance on Fed days has been notably weaker under Powell compared to previous chairs, with most sectors closing in the red, except for consumer discretionary, which gained 0.28%.
A lawsuit filed in Philadelphia accuses Coca-Cola, Mondelez, and Nestle of intentionally marketing ultra-processed foods to children, leading to chronic health issues like type 2 diabetes. The plaintiff, Bryce Martinez, claims these companies' practices mirror those of the tobacco industry, seeking accountability for their alleged harmful tactics. The case includes multiple food giants and demands monetary compensation for the damages caused.
Major U.S. food companies, including Coca-Cola and General Mills, face a lawsuit alleging they have created addictive "ultra-processed" foods that contribute to chronic illnesses in children. The plaintiff, Brass Martinez, claims these companies knowingly designed harmful products, seeking compensatory and punitive damages for their actions. The case highlights growing concerns over the health impacts of highly processed foods and the industry's responsibility in addressing these issues.
The global salty snacks market is projected to grow at approximately 7% from 2022 to 2028, driven by rising demand for convenient, low-sugar, high-protein snacks and innovative product offerings. Potato chips are expected to lead in growth, particularly in emerging economies, while retail channels will dominate sales due to increased e-commerce and consumer preferences. The Asia Pacific region is anticipated to hold a significant market share, fueled by rising disposable incomes and a growing appetite for flavored snacks.
General Mills Inc. is set to engage with federal regulators regarding potential restrictions on food dyes used in its cereals, following calls from Robert F. Kennedy Jr., the nominee for the Department of Health and Human Services, to eliminate these additives. The company emphasized its commitment to collaborating with policymakers as the situation evolves, indicating readiness to discuss any proposed changes.
Jim Cramer expressed skepticism about the potential impact of Robert F. Kennedy Jr.'s nomination as head of the Department of Health and Human Services on the drug and junk food industries. Despite Kennedy's vaccine skepticism and opposition to processed foods, Cramer believes that government staff and lobbyists will resist significant changes, and that the industries are resilient. He cautioned investors against buying stocks in these sectors, particularly those related to vaccines, during a rate-cutting cycle.
Processed food stocks plummeted as investors reacted to President-elect Trump’s nomination of Robert F. Kennedy Jr. for Health and Human Services Secretary, raising concerns over increased scrutiny of major food brands. PepsiCo, Coca-Cola, General Mills, and others saw significant declines, with Kennedy's focus on reforming the FDA and his criticism of current regulations fueling fears of tighter oversight on popular snack and beverage products.
General Mills Inc. has acquired the North American unit of Whitebridge Pet Brands for $1.45 billion, marking its fifth acquisition in the pet food sector since 2018. This division, which includes the Tiki Pets and Cloud Star brands, generated approximately $325 million in US sales over the past year.
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