Consumer companies rose amid deal activity.

Closely held global food processing giant Mars agreed to buy rival Kellanova, the Pop-Tart maker formerly owned by Kellogg, for almost $30 billion. Analysts said the deal could be the first in a series of mergers in the consumer-products sector.

Strategists said there were mixed signals for consumer spending in the inflation data. "While inflationary pressures in general eased in July, the cost of housing rose. "After surprising to the upside earlier this year, recent inflation prints suggest disinflation is back on track, helping to pave the way for Fed rate cuts later this year," said economists at brokerage Bank of America Global Research.

Still, "continued firmness in shelter implies a slower pace of disinflation. It will offset some of the good news we see from July PPI data on medical care services inflation when it comes to the PCE inflation report later this month," the economists warned.

Shares of lingerie giant Victoria's Secret rallied after it tapped Hillary Super, chief executive officer of competitor Savage X Fenty, to be its next CEO.

Starbucks shares hung onto gains, as investors expressed near unanimous approval for the hiring of Chipotle Mexican Grill leader Brian Niccol.

Elliott Investment Management unveiled plans to launch a proxy fight at Southwest Airlines, as the activist turns the heat up in its campaign at the Dallas-based carrier.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

08-14-24 1745ET