Pepsi Earnings Put Consumer Trends in Focus 09/07/2026

 HOT stories for today

Market wrap:

• U.S. stocks finished mixed Wednesday as higher oil prices and renewed tensions in the Middle East weighed on sentiment, while strength in semiconductor stocks helped lift the Nasdaq. The Dow Jones Industrial Average fell 576.76 points, or 1.1%, while the S&P 500 slipped 0.28%, pressured by a surge in energy prices. The Nasdaq Composite edged 0.2% higher as Nvidia and other chipmakers rebounded. Investors grew increasingly concerned that rising oil prices could reignite inflation and delay the Federal Reserve’s path toward lower interest rates. Those concerns were reinforced by the minutes from the Fed’s June meeting, which showed policymakers remained divided and were reluctant to cut rates until inflation shows more convincing signs of easing. Geopolitical tensions also intensified after U.S. Central Command confirmed fresh strikes on Iran in response to attacks on commercial vessels near the Strait of Hormuz.
• West Texas Intermediate crude remained higher as traders priced in increased supply risks. Earlier in the day, President Donald Trump signaled he was no longer interested in negotiating with Iran and said the ceasefire between the two countries was effectively over following the latest escalation. In Asia, China's June inflation data painted a mixed picture, with consumer price growth remaining subdued while producer price inflation accelerated to its highest level in nearly four years. Investors now turn to Thursday's economic calendar, with weekly jobless claims and existing home sales due before attention shifts to PepsiCo's quarterly earnings ahead of the opening bell.

Fed Minutes Reveal Split on Rate Outlook

• Federal Reserve officials remained divided over the future path of interest rates at their June meeting, highlighting continued uncertainty over inflation and the outlook for monetary policy. Minutes from Chair Kevin Warsh’s first Federal Open Market Committee meeting showed policymakers unanimously agreed to keep the benchmark interest rate unchanged at 3.5%–3.75%, but differed sharply on what should come next. Some officials saw inflation easing enough to justify lower rates later this year, while others argued persistent price pressures could require additional tightening. Unlike previous Fed meetings, the minutes offered limited forward guidance, reflecting Warsh’s preference to let incoming economic data, rather than predefined policy signals, drive future decisions.
• Policymakers acknowledged that inflation is expected to remain elevated in the near term before gradually easing as the effects of tariffs, higher energy prices and supply disruptions fade. However, they also warned that inflation risks remain tilted to the upside, with strong demand for AI infrastructure expected to keep pressure on technology and electricity prices. Markets showed little immediate reaction to the release, as investors continue to weigh incoming economic data for clues on the Fed’s next move. The minutes reinforced that policymakers remain highly data-dependent, leaving the outlook for interest rates wide open.

Stocks on the move:

• Energy stocks: Energy names gained as U.S. oil prices surged after President Donald Trump said the ceasefire with Iran was over. Diamondback Energy (FANG) rose more than 3%, while APA Corporation (APA) and Occidental Petroleum (OXY) gained more than 2.5%. Chevron (CVX) climbed more than 2%, and Exxon Mobil (XOM) added 1.5%.
• Cruise lines and airlines: Fuel-sensitive travel stocks fell as oil prices moved higher. Carnival Corporation (CCL) dropped 3.5%, Norwegian Cruise Line (NCLH) lost 3%, United Airlines (UAL) declined 3%, and Delta Air Lines (DAL) slipped nearly 2%.
• Flutter Entertainment (FLUT): Shares climbed 3% after Michael Burry disclosed new stakes in sports-betting names.
• SELLAS Life Sciences (SLS): Shares rose 1% after the CEO defended the maturity of data from the company’s REGAL trial.
• Moderna (MRNA): Shares fell 7% after analysts warned that upside from the company’s cancer-vaccine pipeline may already be priced in.

Watchlist: PEP, NVDA, DKNG, FLUT, SPCX, MRNA, CVX, MU, AMAT

Key Economic Events Today:

EST time

08:30 am: USD Unemployment Claims
09:00 am: USD FOMC Member Williams Spakes
10:00 am: USD Existing Home Sales



Earnings

BMO (Before Market Open): Pepsico (PEP), The Simply Good Foods (SMPL), Byrna Technologies (BYRN)

AMC (After Market Close): WD-40 Company (WDFC)


The TEFS Analyst team wishes you a successful day!