Shares of WK Kellogg, a maker of cereals including Froot Loops, Special K and Corn Flakes, vaulted 30.6 per cent after Italian candy maker and maker of Nutella, Ferrero, agreed to acquire Kellogg in a deal valued at roughly $US3.1 billion ($4.7 billion). The transaction includes the manufacturing, marketing and distribution of WK Kellogg Co.’s portfolio of breakfast cereals across the United States, Canada and the Caribbean.
Sentiment received a boost from Delta Air Lines kicking off U.S. earnings season with a solid outlook for the rest of 2025, spurring an airline stock rally.
Delta surged 12 per cent, bringing other airlines along with it, after beating Wall Street’s revenue and profit targets. The Atlanta airline also gave a more optimistic view for the remaining summer travel season than it had just a couple of months ago.
A rise to Delta Air Lines has boosted shares across the industry. Credit: Bloomberg
The airline and other major U.S. carriers had pulled or slashed their forecasts in the spring, citing macroeconomic uncertainty amid President Donald Trump’s tariff rollouts, which have consumers feeling uneasy about spending on travel.
“Companies are becoming more confident in the range of outcomes for tariffs,” said Michael Antonelli, market strategist at Baird. “Companies are starting to understand what the playing field looks like a little bit better, even though we continue to have these kind of tariff announcements that get bounced back and forth.”
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The market has been steadying following a downbeat start to the week as the Trump administration renewed its push to use threats of higher tariffs on goods imported into the U.S. in hopes of securing new trade agreements with countries around the globe.
Wednesday had been initially set as a deadline by Trump for countries to make deals with the U.S. or face heavy increases in tariffs. But with just two trade deals announced since April, one with the United Kingdom and one with Vietnam, the window for negotiations has now been extended to August 1. That’s given Wall Street a breather just in time for the start of corporate earnings season.
Wall Street analysts predict that companies in the S&P 500 will deliver 5 per cent growth in second-quarter earnings, according to FactSet. That would mark the lowest rate since the fourth quarter of 2023.
