Stocks spent the week treading water as fears intensified that the Federal Reserve is clamping down too hard on an economy that is losing its zip.
Locally, shares of Kraft Foods Inc., the world’s second-largest food company, advanced in the wake of a favorable decision involving parent Altria Group Inc., the maker of Philip Morris cigarettes.
The ruling, handed down in mid-August, said that tobacco companies deceived smokers about the health hazards of their products. But it rejected demands that they pony up another $14 billion in penalties.
More Top Picks Why Do My Eyes Hurt After A Day At The Screen
The decision may pave the way for Northfield-based Kraft to become an independent company. Its stock finished at $32.87, a gain of 20 percent from a 52-week low of $27.44.
On the downside, the stock of McDonald’s Corp. slipped after a top management shakeup resulted in the unexpected departure of Michael Roberts as president and chief operating officer. He had been considered the logical successor to CEO Jim Skinner.
Ralph Alvarez was named to replace Roberts in the No. 2 job at the Oak Brook-based fast-fooder.
McDonald’s shares ended at $35.23, off 4 percent from a recent high of $36.75.
Weakness in the housing industry helped to hammer down shares of Caterpillar Inc., whose heavy-duty construction equipment is critical in carving out subdivisions.
The huge Peoria-based company also settled a dispute with Warrenville-based Navistar Inc. over the making of diesel engines. That won accolades on Wall Street, where one analyst said lengthy litigation “would be a drain on resources.”
The two companies also agreed to new long-term contracts for Caterpillar to supply truck engines, fuel injectors and parts-rebuilding services.
Caterpillar’s stock finished at $65.99, down 20 percent from a 52-week high of $82.03.
The stock of CBOT Holdings Inc., parent of the Chicago Board of Trade, declined as it filed a lawsuit against the Chicago Board Options Exchange after merger talks collapsed.
The suit seeks to enforce the rights of the CBOT’s full members to participate in CBOE’s planned conversion into a public company.
Earlier in the week, the Board of Trade said it will boost fees by as much as 50 percent for non-members trading futures and options tied to Treasuries, the exchange’s most active contracts.
Shares of CBOT ended at $111.37, off 17 percent from a recent high of $134.50.
———-