Stock Rally Takes a Breather
On the upside
PepsiCo (NYSE: PEP) announced plans to buy its two biggest bottlers, Pepsi Bottling Group and PepsiAmericas, for $7.8 billion in half stock and half cash.
Casino operator MGM Mirage (NYSE: MGM) posted a 2nd quarter loss, but was able to reduce long-term debt.
Caterpillar (NYSE: CAT) told analysts of its long-term profitability plans.
On the downside
Toyota Motors (NYSE: TM) posted a smaller than expected quarterly loss. The Japanese auto maker also raised its guidance for the year which remained subject to volatile economic conditions.
Energy and utility holding company PPL Corp. (NYSE: PPL) reported a 2nd quarter loss, maintained its full-year outlook, but cut 2010 profit targets due to margin pressures.
Shares of Stec (Nasdaq: STEC) fell after the memory chip maker posted solid results and news that its CEO and COO were selling stock.
In the broad market, declining issues outpaced advancers by a margin of more than 2 to 1 on the NYSE and by a margin of nearly 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks slipped 3 points to 562.
