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Daily Market Review – 06 July 2015

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Daily Market Review – 06 July 2015

Jul 06 2015, 09.30am GMT



Pepsi Earnings – What to Expect


It is that time again as the earnings season kicks off this week. In the spotlight is PepsiCo Inc. (NYSE: PEP) which is scheduled to report on its second quarter results on Thursday, 09 July. According to consensus estimates, Pepsi is expected to report earnings per share of $1.24, on revenue of $15.81 billion. The beverages giant is currently testing out an entire new brand of products which Pepsi is calling the ‘Stubborn Soda’ lineup. The concept is to shift towards more craft sodas and beers and to capitalize on this growing trend within the soft drink business. At the close of trading on Thursday, the shares of Pepsi were trading at $94.66 while interestingly; the consensus price target is $106.15 a share. Also, Pepsi stock has a 52 week trading range of between $87.46 and $100.76.

STOCK.com   Indices

Greece held a referendum on the 5th of July and its citizens voted to reject the terms of its current bailout agreement. As a result, stock index futures in the U.S. were lower early on Monday, with a sharp decline also seen in the Asian markets. Approximately ten hours prior to the U.S. markets opening on Monday, the futures for the S&P 500 index (SPX, -0.03%) and the eMini Nasdaq 100 futures were both already down 1.2 percent. Also, the CBT eMini Dow Jones Industrial Average (DJIA) futures were also 1.1 percent weaker before the start of trade. All 3 future indices saw a big decline after the Greek referendum results were released and while they are all currently above their earlier lows, this could change considerably ahead of the start of trade in New York, especially after the markets in Europe open first. Despite these declines, the top Asian stock benchmarks traded a lot lower than the U.S. futures. In Japan, the Nikkei Average (NIK, -2.22%) was down 1.8 percent while in Hong Kong, the Hang Seng Index (HSI, -3.18%) dropped 3.1 percent. Meanwhile on Friday, the S&P 500 index (SPX) ended little changed, the tech heavy Nasdaq Composite index (COMP) declined 0.1 percent while the Dow industrials (DJIA) ended the trading day down 0.2 percent.

STOCK.com   Currencies.

In currency trading on Monday, the euro (EUR) declined sharply in early Asian trade. This came after the results of the Greek referendum showed that voters in the country had rejected the proposed bailout terms from international creditors. As a result, the question now remains as to whether Greece will continue to be a member of the euro zone or if we can expect to see an exit. According to the vote results, over 60% of the voters in Greece rejected the bailout terms and Alexis Tsipras, the Greek Prime Minister has stated that he is ready to continue negotiating with a plan of reforms. As a result, the EUR/USD traded down 0.80% at 1.1022. Also, the AUD/USD traded down 0.31% at 0.7493 while the USD/JPY also declined 0.36 percent to trade at 122.34. The U.S. dollar index traded at 96.62, up 0.25%.

STOCK.com   Commodities

On Monday, crude oil prices took a sharp decline in early Asian trade. This came in response to the 'No' vote by Greece over the weekend which has now set the stage for volatility in the financial markets. WTI crude oil for delivery in August traded at $54.84 a barrel, down 1.22%, in electronic trading on the NYMEX. Friday saw no floor trading as a result of the Independence Day holiday in the U.S. Meanwhile, on Friday last week, oil prices declined in thin trade. This came in response to an increase in the rig count in the U.S. which prompted investor concerns regarding the global supply glut. According to the report by Bakes Hughes on Thursday, the number of oil drilling rigs in the U.S. increased to 640 last week, up 12 rigs. This marked a break in the 29 straight weeks of declines. Meanwhile on Friday, Brent crude oil for August delivery traded at $60.56 a barrel, down 2.44 percent, on the ICE Futures Exchange in London. For the week, the contract lost 4.65 percent.

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