Investor focus was back on trade on Friday, as positive signs for a deal with China lifted the market. Trade-sensitive industrial stocks helped the Dow Jones Industrial Average (DJINDICES:^DJI) gain over 400 points, and the broader-based S&P 500 (SNPINDEX:^GSPC) closed up as well.

Today's stock market

Index Percentage Change Point Change
Dow 1.74% 443.86
S&P 500 1.09% 29.87

Data source: Yahoo! Finance.

Bank stocks participated in the rally today, and a rise in crude oil lifted the energy sector. The SPDR S&P Bank ETF (NYSEMKT:KBE) climbed 2.3% and the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) jumped 2.7%. 

As for individual stocks, investors liked PepsiCo's (NASDAQ:PEP) outlook, and NVIDIA (NASDAQ:NVDA) met lowered expectations and offered an optimistic view of the upcoming year.

Hand drawing an upward graph.

Image source: Getty Images.

Investors like Pepsi's future

A major soft drink company reported fourth-quarter results that met expectations but gave guidance for 2019 that was below what analysts were expecting. That was the headline yesterday that sent Coca-Cola shares down 8%, but the same story for PepsiCo today propelled its stock up 3%.

PepsiCo's revenue was flat at $19.5 billion and core earnings per share came in at $1.49, up 17% excluding currency effects and right on target with expectations. Organic revenue, excluding currency and one-time events, grew 4.6% in the quarter and 3.7% for the year.

Coke and Pepsi both forecast 4% organic revenue growth in 2019, but for Pepsi, that's an improvement of 30 basis points, while it is a decline of 100 basis points for Coke. Investors seem to buy into plans that incoming Pepsi CEO Ramon Laguarta has for stimulating growth and making technology investments to generate $1 billion in annual savings through 2023.

A few days of share-price movements never tell the full story, and despite their different performances this week, Coca-Cola still sells for a slightly higher valuation relative to 2019 earnings guidance than Pepsi does.

NVIDIA foresees a big turnaround after next quarter

Revenue and profit at NVIDIA plunged in the fourth quarter, but cheery guidance for a big sales rebound later this year lifted shares 1.8%. Revenue fell 24% to $2.21 billion and earnings per share dropped 48% to $0.92. NVIDIA had updated its guidance last month, so the results were not much of a surprise.

Sales in NVIDIA's gaming segment continue to suffer from the collapse of cryptocurrency mining, which resulted in a huge amount of unsold inventory. The company also blamed "recent deteriorating end-market conditions," particularly in China, for low end-user demand.

Looking forward, NVIDIA guided to Q1 sales of $2.2 billion, well below the $2.4 billion analysts have been expecting, but full-year revenue of "flat to slightly down" from last year's $11.7 billion implied guidance above the $11.4 billion analyst consensus.

That turnaround suggests a huge second half for the chipmaker, which had the bulls and bears locked in debate about the likelihood of that today.