Stocks hit new records as an appetite for deals sends food companies up

Stocks again broke records Tuesday as investors came back from a long weekend hungry for deals. Although Kraft Heinz and Unilever couldn’t agree to a proposed $143-billion mega-merger, food and household goods makers rose as investors bet that other deals are coming.

Companies that make packaged foods, everyday household items and other consumer goods are usually seen as stable investments and rarely take center stage on Wall Street. But Tuesday they did just that, because investors believe that the failed Kraft Heinz-Unilever deal will be replaced by other deals. Oreo maker Mondelez and jam maker Smucker made the largest gains.

“That’s why you saw the [home and personal care products] companies move up on Friday and you’re seeing some of them follow through today,” Jefferies & Co. analyst Kevin Grundy said.

Stocks built on their gains over the…

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