PepsiCo Kicks Off Earnings Season on a Positive Note but Markets Sell Off

Tom Gentile

Posted in
Big Picture

By: Tom Gentile
July 12th, 2022

2 mins read

If anyone was thinking supply chain concerns, inflation, and more rate hikes to come was going to put a damper on companies’ earnings reports for Q2, PepsiCo (NYSE: PEP) is one company that disproves that.

PEP announced reported a better-than-expected quarterly profit and revenue and they also say they are raising their revenue outlook for the year.

Though his could be deemed by many great news, many analysts are saying that the concerns expressed in the opening paragraph to this piece are still there and the impact of those concerns are likely to be reflected in the third quarter earnings. I guess to those saying that is take the Q2 numbers with a grain of salt? Maybe, but all that is being expressed here is what the numbers are now.

JP Morgan Chase & Co and Delta Airlines are a couple of big names out this week and they are companies in two industries that are sensitive to interest rates and inflation concerns so the eps reports are to be focused on to see the market reaction to their numbers and their guidance.

Lack of a Catalyst

An article out from CNBC.com has info from an analyst at Truist and here is the paragraph that caught our attention.

“There’s a lack of a catalyst, a lack of a leadership right now,” said Truist’s Keith Lerner. “Growth is slowing, and global central banks are still in tightening mode, and I think that’s concerning the markets.”

We can’t argue that opinion and so it may take the CPI report due out tomorrow to be that catalyst. Or maybe we need a week or two of earnings and reports and guidance from major companies to be the catalyst for a move in either direction.

Boeing Jumps Today

Boeing shares climbed 8.8% as deliveries hit their highest monthly level since March 2019.

American Airlines said today it expects total revenue in the second quarter to top 2019 levels and their shares soared 11%.

The key is to keep an eye out for not only a company’s earnings and revenue, but their guidance as well, because even though the markets reversed in a bearish fashion this last hour or so of trade today, a good news story can provide a catalyst for a specific company to move higher on the day regardless of what the overall market is doing.

App: Toms Option Tools

Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.

Other times I will have other charts may work to amplify my educational points. 

Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.

Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.


Disclaimers

Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.

Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.

This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.

You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.

Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.

Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.

A full disclaimer can be found here:  http://www.tomgentile.com/legal_disclaimers.html.

Sign Up Now for Free Education!