Hershey Stock Simmers as Mondelez Weighs Takeover

Major U.S. equities indexes moved lower at the onset of a new trading week that will see the release of several key economic data points. In particular, Wednesday’s Consumer Price Index (CPI) report could have implications for Federal Reserve officials as they weigh whether to cut interest at the final policy meeting in 2024, scheduled for Dec. 17-18.

The S&P 500 and the Nasdaq both closed Monday’s session down around 0.6%, retreating from record levels notched last week. The Dow lost 0.5%.

Advertising agency Omnicom (OMC) announced an agreement to acquire rival firm Interpublic Group (IPG). If the all-stock takeover comes to fruition, the combined entity would be the world’s largest ad conglomerate. Omnicom’s chief executive said the deal would expand opportunities to benefit from new technologies and ongoing changes in the advertising industry. However, Omnicom shares tumbled 10.3% after the announcement, losing the most of any S&P 500 stock on Monday. Interpublic Group shares added 3.6%.

Comcast (CMCSA) shares dropped 9.5% after the internet and cable provider said it expects to shed more than 100,000 broadband subscribers in the fourth quarter, mirroring negative trends from the first half of the year. Comcast’s CEO pointed to a tough competitive environment in the broadband business, especially among consumers concerned about reining in spending. Shares of fellow cable provider Charter Communications (CHTR) lost 9.2%.

Shares of nuclear power generators, which have posted outsized gains in 2024 on optimism around opportunities to power artificial intelligence (AI) data centers, moved lower Monday. A co-chair of the U.S. Congressional Task Force on AI reportedly asked regulators to support the “co-location” of data centers adjacent to nuclear facilities. Last month, the Federal Energy Regulatory Commission (FERC) ruled against a proposed Amazon (AMZN) data center at a Talen Energy (TLN) nuclear site. Vistra (VST) shares fell 9.3%.

Shares of Axon Enterprise (AXON), maker of Taser devices and other law enforcement equipment, slipped 6.6%. Axon stock tore higher in November after the company posted stronger-than-expected quarterly profits, with a boost from AI offerings and premium product packages. Analysts have also suggested Axon could benefit under the incoming presidential administration. Monday’s drop marked a retreat from all-time highs after the stock notched an intraday record just below $700 on Friday.

Hershey (HSY) shares skyrocketed 10.9%, gaining the most of any S&P 500 stock, following reports that snack food giant Mondelez International (MDLZ) is evaluating a potential acquisition of the Pennsylvania-based chocolate maker. Combining Hershey with Mondelez, already the parent company of Cadbury, would create one of the largest confectionary companies worldwide. Mondelez shares slipped 2.3%.

Enphase Energy (ENPH) shares advanced 6.8% after the solar technology firm announced a partnership with Netherlands-based power provider NextEnergy. The new collaboration will help owners of Enphase’s solar and battery storage systems to maximize energy savings and profitability as they participate in the Netherlands’ grid imbalance energy markets.

Shares of Albemarle (ALB), the world’s largest lithium miner, jumped 4.5%. Albemarle stock dropped in the opening days of December as analysts predicted lithium prices would remain under pressure in 2025 as elevated supply levels persist. However, shares changed course in recent days and recouped the majority of those losses.