Full Steam Ahead for Kansas City Southern; Tobacco Stocks Fall on Regulation Fears
Tuesday was not a good day for stock market investors, as major market benchmarks were broadly lower on the day. Even as COVID-19 vaccination efforts continue in the U.S., nervousness about a huge spike in case counts in India and elsewhere internationally have some market participants questioning the bullish thesis for a full global economic recovery. As of 3:45 p.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 273 points to 33,805. The S&P 500 (SNPINDEX: ^GSPC) dropped 27 points to 4,136, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gave up 122 points to 13,793.
Even on a down day, Kansas City Southern (NYSE: KSU) chugged steadily higher on news that a second railroad acquirer might be interested in purchasing the company. Meanwhile, Altria (NYSE: MO), British American Tobacco (NYSE: BTI), and some other tobacco stocks fell on news of potential regulation that could hurt their businesses.
Shares of Kansas City Southern soared more than 15% on Tuesday morning. Just when investors had thought that the railroad company's merger with Canadian Pacific (NYSE: CP) might go through as planned, another rival north of the U.S. border stepped in to shake things up.
Source Fool.com
