Stock market today: S&P 500, Nasdaq climb as oil prices retreat
10/08/2024 21:18
The focus is back on the ongoing debate over the economy and interest rates as headwinds ease.
US stocks opened higher on Tuesday as investors welcomed a pullback in surging oil prices, putting focus back on the ongoing debate over the economy and interest rates.
The benchmark S&P 500 (^GSPC) stepped up around 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) also rose about 0.5% as tech megacaps began to recoup some of the previous session's losses. The Dow Jones Industrial Average (^DJI) edged up roughly 0.3%.
Stocks are set to pick up on the winning trend of recent months as Monday's headwinds ease, with oil prices retreating as Mideast tensions cool somewhat.
Some "Magnificent Seven" stocks were starting to regain ground lost amid negative headlines, with Amazon (AMZN), Apple (AAPL), and Alphabet (GOOG, GOOGL) all nudging slightly higher. Meanwhile, Nvidia (NVDA) built on a closing gain as the chip heavyweight's partner Hon Hai pointed to "crazy" AI demand.
But the market is still grappling with busted hopes for jumbo interest rate cuts while lingering recession worries got a boost as China failed to deliver an expected big stimulus on Tuesday. Stocks in Hong Kong (^HSI) slumped over 9%, as a roaring stimulus-fueled rally in Chinese stocks fizzled out.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
On that theme, Federal Reserve policy is "well positioned" to nail a "soft landing" for the economy, New York Fed president John Williams told the Financial Times. Meanwhile, Fed governor Adriana Kugler said data will continue to drive rate decisions.
Those comments sharpened investors' focus on the CPI inflation report due Thursday, which will provide further clues on the path forward for interest rates.
In corporates, PepsiCo (PEP) got the ball rolling on earnings season, posting a surprise drop in quarterly revenue and lowering its forecast for 2024 sales growth. Shares of the snack and drinks giant slipped in early trading.
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Stocks open higher, oil retreats
US stocks opened higher on Tuesday after all three major indexes closed Monday's session in the red.
The benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each climbed around 0.5%, while the Dow Jones Industrial Average (^DJI) edged up roughly 0.3%.
Oil prices, which have surged amid Middle East tensions, retreated early Tuesday. Crude oil (CL=F) fell about 3% to trade just below $75 a barrel.
PepsiCo cuts 2024 sales outlook as snack business lags
PepsiCo (PEP) lowered its sales outlook for the year, forecasting organic revenue growth in the low single digits below the previously expected 4% growth. As Yahoo Finance's Brooke DiPalma reports, PepsiCo's third-quarter revenue trailed behind Wall Street's estimates, coming in at $23.3 billion, versus the $23.8 billion expected.
CEO Ramon Laguarta said in the release that Pepsi's performance was impacted by "subdued category performance trends in North America," the impact of recalls at Quaker Foods North America, and business disruptions from "rising geopolitical tensions in certain international markets." In a phone interview with Yahoo Finance, Laguarta said consumers are "very challenged" and they are making a "lot of trade-offs" when it comes to food. Those tradeoffs are weighing on the snacks business most acutely, Laguarta explained.
PepsiCo shares dipped nearly 1% in pre-market trading. Read the full story here.
