PepsiCo Outperforms as Dow Is Poised for Early Losses

LONDON -- Stock index futures at 7 a.m. EST indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open 0.45% lower this morning, while the S&P 500 (SNPINDEX: ^GSPC  ) may open 0.4% lower. CNN's Fear & Greed Index remains in "extreme greed" territory after closing at 88 yesterday.

Today's weekly jobless-claims data, due at 8:30 a.m. EST, is expected to show a slight improvement on the previous week, with claims falling from 366,000 to 360,000. However, any improvement here could be overshadowed by news that both Europe and Japan remain in recession. Eurozone GDP fell by 0.6% in the final quarter of 2012, while in Japan, GDP fell by 0.1% over the same period.

Corporate earnings may provide some good news, with several big names due to report this morning. PepsiCo (NYSE: PEP  ) made a strong start, reporting 5% growth in organic revenue for 2012 and earnings per share of $1.09, beating expectations for earnings of $1.05 per share. Other big names expected to release quarterly earnings before the opening bell include General Motors, Discovery Communications, DirecTV, Molson Coors Brewing, BorgWarner, Waste Management, and Apache.

Stocks that could be actively traded this morning include Cisco Systems, which was down 2% in premarket trading after updating its third-quarter revenue guidance, and Applied Materials, which was nearly 3% higher in premarket trading after forecasting a pick-up in equipment sales.

European markets
Markets moved firmly lower in Europe this morning as the details of the disappointing GDP figures became clear. In the final quarter of 2012, eurozone GDP fell by 0.6%, exceeding expectations for a 0.4% drop and confirming the eurozone's ongoing recession. In individual countries, GDP fell 0.9% in Italy, 1.8% in Portugal, 6% in Greece, 0.6% in Germany, and 0.3% in France. Figures for Spain were not published today, while in the U.K., GDP fell by 0.3% in the final quarter of last year.

At 7 a.m. EST, the DAX was down 1.1%, the CAC 40 was down 0.8%, the FTSE MIB was down 1%, and the IBEX 35 was down 1.6%. In London, the FTSE 100 (FTSEINDICES: ^FTSE  ) was down 0.8%, with oil services and engineering firm AMEC the biggest faller, down 6.1% after it downgraded its guidance for the year ahead despite beating expectations in its full-year results. Pharmaceutical firm Shire was 3.5% lower, cruise ship giant Carnival was down 2.9%, and miner Eurasian Natural Resources was down 2.6%, probably due to profit-taking following its recent strong gains.

If you're looking for shares that can outperform the wider market, you need to look beyond the news headlines. This free Motley Fool report, "The Top Growth Share For 2013," highlights a share that gained 38% in 2012, during which time the wider market rose just 6%. The company is a household name, and its earnings per share have risen by 44% since 2009 -- so click here now to download your free copy of this report while it is still available.


Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2255109, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:17:33 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,228.88 134.05 0.74%
S&P 500 2,160.10 14.00 0.65%
NASD 5,297.90 40.41 0.77%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 1:02 PM
^DJI $18228.68 Up +133.85 +0.74%
^FTSE $6807.67 Down -10.37 -0.15%
FTSE 100 CAPS Rating: No stars
^GSPC $2159.89 Up +13.79 +0.64%
S&P 500 INDEX CAPS Rating: No stars
PEP $107.78 Up +0.75 +0.70%
PepsiCo CAPS Rating: ****