It was a week when major stock averages hit a 4 1/2-year high before the market ran into crosscurrents, mainly concerns over interest rates.
Leading the way higher was the stock of Archer Daniels Midland Co., after Energy Secretary Samuel Bodman said the federal government wants to make $160 million available for the construction of three biorefineries. He said using material fed through such facilities could help displace 30 percent of current gasoline use by 2030. He made the comments at ADM’s headquarters in Decatur, Ill.
“Our aim is to assist industry in demonstrating a commercial biorefinery that will operate profitably once construction is completed over the next three or four years,” he said.
Shares of ADM, the nation’s largest producer of ethanol, ended the week at $30.96, up 77 percent from a 52-week low of $17.50.
The stock of Kraft Foods Inc. headed higher after Chief Executive Roger Deromedi told a conference of food industry analysts that the company is making a push to get consumers to trade up to premium brands and products that focus on health and wellness.
He cited the South Beach Diets line, which in 10 months has racked up $170 million in sales for the nation’s largest food company. Northfield-based Kraft also has closed 19 plants and eliminated 5,500 jobs. Shares of Kraft ended at $30.29, up 10 percent from a 52-week low of $27.44.
On the downside
The stock of Sears Holdings Corp. crept lower after the Hoffman Estates-based retailer said it will abandon its new Sears Essentials format, retaining its larger Sears Grand outlets.
About 50 Kmart stores were converted to Sears Essentials, which provided wider aisles, bigger signs, a brighter layout and a different mix of goods. But consumers were unimpressed, and sales lagged.
Gone from the revamped stores was the Martha Stewart line, blue-light specials and other deep discounts.
The stock of Sears Holdings ended at $120.33, down 26 percent from a 52-week high of $163.50.
Shares of Illinois Tool Works Inc. suffered a setback even though the company earlier this month affirmed its earnings guidance. The Glenview-based diversified manufacturer reported operating revenue growth of 8 percent for the three months ended Jan. 31.
Shares of ITW finished at $86.58, off 8.5 percent from a 52-week high of $94.64.
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wsluis@tribune.com
