UPDATE: The morning after the Dow's 1,000-point dive Monday, stocks have rebounded, with many in the food and beverage industry up between one-half and two percentage points shortly after the opening bell. The market continues to flucutate following Monday's significant drop.
Dive Brief:
- On a day when the stock market — influenced by the Chinese economy — fell sharply in the morning, recovered around lunchtime, and fell again by closing, food and beverage companies in particular mostly saw stocks drop one to several percentage points. Whole Foods Market and Syngenta AG, however, saw upticks.
- The Dow saw declines Monday following a 1,000-point drop around the opening bell. It closed down more than 580 points, or around 3.5%.
- Corn prices ticked up, as in turn did wheat prices. Soybean prices hit a close to six-year low, with futures for September delivery hitting the lowest closing price since October 2009 at 1.4%.
Dive Insight:
The industry has seen one of the busiest merger and acquisition years — $80.2 billion in deal value in the first half of 2015 alone — but a continued lack of investor confidence suggests this may not stay the norm.
That being said, one company whose stock rose Monday was Syngenta, which suggests investors are in favor of Monsanto's latest offer to buy the company, which Bloomberg reported.
Meanwhile, Coca-Cola recently announced $4 billion in Chinese investment plans. The company's shares dipped 9.5% in value in early trading Monday, not making as strong a comeback as others, down 3.75% in value at closing.
Groupe Danone SA, which actually saw a slight increase earlier but remained flat, a win for the day, all things considered. Also notable is PepsiCo's more significant decline, with its stock settling at around a 4.59% drop, making it one of the day's biggest losers in the food industry.
"The movements we've seen have been so fast and so large," Peter Costa, the president of the trading firm Empire Executions, told CNBC. "You're talking about 75, 100-point moves in two minutes. It's been extremely fast, and it's happened very, very quickly."
