Thursday October 7, 2021

// October 7th, 2021 // Comments Off on Thursday October 7, 2021 // Daily News

MARKETS

Stocks rally on hopes Congress will avert government shutdown, Dow rises 300 points

Stocks jumped on Thursday, continuing Wednesday’s midday comeback, as Congress appeared to near a deal that would raise the debt limit in the short term and avoid a disastrous government default.

The Dow Jones Industrial Average rose 350 points, or 1%. The S&P 500 gained 0.9% and the Nasdaq Composite jumped 1%.

A broad range of stocks were higher in premarket trading. Tech shares Twitter, Nvidia and AMD were more than 1% higher. GM and Southwest Airlines also rose. Costco shares added 1% after reporting better-than-expected September sales. Facebook gained after JPMorgan said it was time to buy the recent dip on the stock.

On Tuesday, Treasury Secretary Janet Yellen had warned that they U.S. should “fully expect” a recession if Congress couldn’t reach an agreement on the debt ceiling, leading to an unprecedented government default. Then during the trading day Wednesday, Senate Minority Leader Mitch McConnell offered a short-term suspension proposal to Senate Democrats. They were likely to accept the deal that would raise the debt ceiling by a specific amount and allow the government to keep operating until some point in December.

“A temporary deal should help reduce debt ceiling related market volatility over the next few weeks as attention shifts towards December,” wrote Mark Haefele, chief investment officer of global wealth management at UBS.

Following the news on Wednesday, the Dow reversed and ended more than 100 points higher. The S&P advanced 0.4%, after falling as much as 1.27%. The Nasdaq Composite rose 0.5%, after dropping as much as 1.2%.

“While we believe a debt ceiling deal will get done, politicians may need some market ‘motivation.’ This could keep near-term volatility elevated,” said Christopher Harvey, senior equity analyst at Wells Fargo Securities. “We view yesterday’s offer from Senate GOP leadership not as a durable solution, but rather as an invitation to stave off a potentially immediate disaster — a small positive.”

Weekly jobless claims fell sharply last week as the enhanced unemployment benefits ended, the Labor Department reported Thursday. Initial filings for unemployment benefits totaled 326,000 for the week ended Oct. 2, below the 345,000 Dow Jones estimate and a drop from the previous week’s 364,000.

Tuesday October 5, 2021

// October 5th, 2021 // Comments Off on Tuesday October 5, 2021 // Daily News

Remember, Pepsi didnt tell their employees they ” were too white” like Coke did

everything woke turns to S&^T

Pepsi earnings top estimates despite higher supply chain costs, company raises revenue forecast

PUBLISHED TUE, OCT 5 20216:08 AM EDTUPDATED 2 HOURS AGOAmelia Lucas@THXAMELIANSHAREShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via EmailKEY POINTS

• PepsiCo raised its full-year forecast after its quarterly earnings and revenue topped analysts’ expectations.
• The company’s organic revenue climbed 9% in the quarter.
• But growth of Pepsi’s North American beverage unit moderated during the quarter.

PepsiCo on Tuesday raised its full-year forecast after its quarterly earnings and revenue topped analysts’ expectations, despite higher costs and snarls in the supply chain.

Pepsi shares rose less than 1% in premarket trading.

Executives said supply chain disruptions and inflationary pressure for labor, commodities and transportation weighed on its fiscal third-quarter results.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $1.79 adjusted vs. $1.73 expected
• Revenue: $20.19 billion vs. $19.39 billion expected

For the quarter ended Sept. 4, net income fell to $2.22 billion, or $1.60 per share, from $2.29 billion, or $1.65 per share, a year earlier.

Excluding items, the food and beverage giant earned $1.79 per share, topping the $1.73 per share expected by analysts surveyed by Refinitiv.

Net sales rose 11.6% to $20.19 billion, beating expectations of $19.39 billion. The company’s organic revenue, which strips out the impact of acquisitions and divestitures, climbed 9% in the quarter.

Pepsi’s North American beverage business reported organic revenue growth of 7% for the quarter. While the unit’s organic sales have risen 10% on a two-year basis, growth has moderated since bouncing back 21% in the prior quarter. The company said that it saw double-digit net revenue growth for its food service business, which includes sales to restaurants, stadiums and college campuses.

Frito-Lay saw its organic revenue increase by 5% as consumers maintained many of their pandemic snacking habits. Pepsi said that it gained market share in the salty and savory snack categories during the quarter.

Quaker Foods North America, which has been the most challenged of Pepsi’s business units, saw its organic revenue increase by 1%. It was the only segment to report shrinking volume, which excludes the impact of price changes, and reported the largest drop in operating profit.

For the full year, Pepsi said it expects its organic revenue to increase by 8%, up from its prior forecast of 6% growth. The company reiterated its forecast for core constant currency earnings per share of 11% growth. Analysts were forecasting full-year earnings growth of 13% and a revenue increase of 9.5%.