US Stock Market Overview – Stocks Rise Led by Materials; Technology LagsBank earnings season kicks off on Tuesday
US stock prices whipsawed on Monday with the Nasdaq hitting fresh highs and then closing on the lows down 2%. Sectors in the S&P 500 index were mixed, led by materials and financials, technology lagged. Tomorrow earnings season will kick-off led by financial results from JP Morgan. The VIX continued to remain elevated despite the S&P 500 index moving into positive territory for the year. The current reading on the VIX is 29, which is above the 200-day moving average and well above the 2019 average of 15. Pepsi reported earnings that beat expectations, as snack foods continue to help drive results. The dollar continued to head south which is helping large-cap stocks that have an international presence.
Bank Financial Results Kick off the Earnings Season
Bank earning kick off the season on Tuesday led off by JP Morgan Chase. Investors should focus on this more than usual because their dividends are potentially at stake. New Federal Reserve rules will limit third-quarter payouts to the average level of profits a bank made over the prior four quarters
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Pepsi Financial Results Show Strong Growth in Food Items
Pepsi, which is one of the large drink and snack food companies in the world report on Monday that net sales dropped 3.1% to $15.95 billion, which was better than expected. Despite the decline in revenue which was driven by declines in sales to large venues such as stadiums and arenas, the company reports strong growth in its food items. Quaker Foods North America reported revenue growth of 23% as consumers bought more oatmeal for breakfast and baking products. Frito-Lay, another Pepsi product saw North America saw sales growth of 6% year over year.