Dow Jones Ends Lower as Fed Fears Overshadowing Pepsi Pop By Investing.com

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© Reuters.

By Yasin Ebrahim

Investing.com — The Dow fell on Wednesday as September minutes from the Federal Reserve signaling a longer-term rate hike eclipsed a rise in Pepsi after better-than-expected quarterly results.

The 0.1% drop or 28 points, the 0.1% drop and the 0.3% drop.

Federal Reserve policymakers continued to reiterate the need to push monetary policy into restrictive territory and keep rates high until there was “compelling evidence” that was on track to slow toward the Fed’s 2% target.

“Without noticeable decline [in the FOMC minutes] Against the current pace of rate hikes, we believe the FOMC is on track for another 75 basis point hike in November,” Morgan Stanley said in a note.

The minutes came as investors fret over an inflation report due Thursday that economists expect to show, which excludes food and energy prices, continues to heat up.

Adding to these concerns, Tuesday’s release showed pricing pressures for businesses grew at a faster pace than expected in September.

Energy, however, helped keep the broader market above the fixed line despite falling oil prices as Valero Energy Corporation (NYSE:) and Coterra Energy Inc (NYSE:) and Phillips 66 (NYSE:) piled up gains.

Consumer staples were pulled higher by PepsiCo (NASDAQ:) after the company raised its full-year guidance and reported better-than-expected earnings, buoyed by price increases. Its shares jumped 4%.

The snacks and beverages giant’s ability to pass on rising costs to consumers has caught the eye of investors looking to weather the current market volatility amid economic uncertainty and bullishness.

“If you want to weather that volatility, until we answer the question of a shallow recession or not, Pepsi is the type of company we would consider because it has positive cash flow, good structures earnings going forward, and they’ve been “investing in their own future growth,” said Brian Mulberry, client portfolio manager at Zacks ahead of Pepsi’s quarterly results in a recent interview with Investing.com.

Technology remained under pressure as gains by Alphabet (NASDAQ:) and Microsoft (NASDAQ:) were offset by weak chip stocks.

In other news, Modern (NASDAQ:) jumped 8% after announcing it would partner with Merck & Company Inc (NYSE:) to develop and sell a cancer drug.

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