Diamonds and Dogs
Pepsi (PEP) trading up 3% to a new 52 week high. The beverage maker reported better than expected earnings and sales as an advertising and marketing push helped drive sales of its snacks, sparkling waters and low-sugar sodas globally. Core sales grew at the fastest pace in more than three years. The new CEO, Ramon Laguarta who took over months ago has spent more on advertising, raised production capacity, while tweaking its supply chain to focus more on healthier snacks and beverages.
Sprint Corp. (S) and T-Mobile US (TMUS) merger may be in trouble. Both Sprint and T-Mobile are down over 2% after a published report suggested the Justice Department won't approve their merger as currently structured. Justice Department officials are balking at approving the $26.5 billion acquisition of Sprint by T-Mobile over antitrust concerns, The Wall Street Journal reported, citing unnamed sources. In a meeting earlier this month, Justice Department staff members laid out their concerns with the all-stock deal and questioned the companies' arguments that the combination would produce important efficiencies for the merged company.