In recent months, the economy has been marked by a series of apparent contradictions. To combat surging inflation, the FED has raised interest rates, which should, in theory, have a slowing-down effect on the stock market.
Despite this, stocks have been surging with major benchmark indices such as the S&P 500 reaching record highs, and yet, the crisis not visible when it comes to investing is more than present in the pressure facing regular people from ever-rising prices of everyday goods and relative wage stagnation – not to mention from the tens of thousands of layoffs planned for 2024.
One man has, however, apparently brought the many facets of the economy together – and shone a new light on how disjointed they can be – the millionaire CEO of Kellogg’s (NYSE: K) – the company best-known for inventing cornflakes – Gary Pilnick.
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In a February 21 appearance on CNBC, Pilnick opined that people should switch to eating cereal for dinner in the context of the ongoing cost-of-living crisis as a savvy way of putting food on the table while not overspending.
Kellogg’s faces pushback over dinner recommendation
While Kellogg’s CEO remained confident that the recommendation to eat cereal for dinner is appropriate for the times – and while Kellogg’shas been marketing the idea since 2022 when the costs started skyrocketing – it led to significant pushback from different corners of the internet.
Many on social media platforms like TikTok found the comments tone-deaf and particularly took issue due to the fact that the advice was coming from someone making no less than $1 million each year.
Given the impact the public outrage had in the wake of an ill-conceived marketing campaign in 2023 on the shares of Anheuser-Busch InBev (NYSE: BUD) – better known as Bud Light – and the effects of ongoing boycotts linked to the Gaza war, Kellogg’s stock might soon face formidable headwinds.
Indeed, the food processing company has already suffered from two significant 1-day stock market drops in the wake of CEO Pilnick’s comments.
Kellogg’s stock price chart
Despite its efforts to introduce dinner cereal, Kellogg’s has been on a decisive downturn in the last 52 weeks, and its stock declined 10.09% in the period.
Additionally, following the CEO’s appearance, the shares of the company have been trading with significant volatility, first falling from $56.89 to $55.80 on February 21, then recovering toward $57 before again falling to $55.63 by the market’s close on Tuesday, February 27.
Overall, Kellogg’s shares are 1.24% in the red in the week that passed since the firm’s CEO appeared on CNBC.
Still, it remains to be seen whether there will be a greater fallout to the dinner recommendation as the food processing company has been trading with volatility throughout 2024, recording a significant decline in the first weeks of January and two brief upturns toward the end of the same month and in mid-February.
Year-to-date (YTD), Kellogg’s stock is down 3.69%.
Kellogg’s stock technical analysis
Technical analysis (TA) based on Kellogg’s stock market performance in the week since the company’s CEO recommended cereal for dinner and retrieved from TradingView also seemingly does not favor the food processor.
Kellogg’s shares are overall rated as a “sell,” with oscillators being generally neutral but moving averages ranking it as a “sell.”
Technical analysis based on the last 30 days is even more bearish, with oscillators turning to “sell” and moving averages to “strong sell” though if only the latest 24 hours are analyzed, Kellogg’s becomes an overall buy despite closing in the red on Tuesday.
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