Beat the street: US stocks ‘melt up’ looks set to continue; PepsiCo rare sales decline; hot cocoa
US stocks indicated higher after the S&P 500 breached the 5,000-mark for the first time. PepsiCo’s results show that customers are beginning to push back on its price hikes.
Plus, global cocoa prices hit fresh record highs as dry weather hurts crops in West Africa.
(AI Video Summary)
S&P 500 breaks 5,000 mark milestone
In today's edition of "Beat the Street", Angeline Ong brings you the latest news in the financial markets. The S&P 500, which is an index that measures the performance of the 500 largest companies in the US, has reached a milestone by breaking the 5,000 mark for the first time. This is a big deal for investors and traders because it shows that the market is doing well and companies are making good profits. However, there are some concerns that the market may be getting tired and could start to slow down.
Dow Jones remains at high level
On the other hand, the Dow Jones, another important index that tracks the performance of 30 major US companies, is showing cautious movement but still at a high level. An IG expert named Axel Rudolph has analysed the technical details of the Dow and believes that as long as certain levels are maintained, the trend will continue to be positive. He even predicts that it could potentially reach the 40,000 mark, which is a number that many traders and investors consider to be significant.
PepsiCo's Q4 earnings and sales decline
Moving on to earnings, let's take a look at PepsiCo. They recently announced their fourth quarter numbers and they were quite good. However, the company also experienced a decline in sales for the first time in four years. This is because they have increased their prices and it seems that consumers are not willing to pay those higher prices anymore. This has caused a drop in revenue for the company and is expected to lead to a drop in their stock price.
Catalent sales below expectations
Another company, Catalent, which operates in the weight loss drug industry, also reported sales below what was expected. They have been facing challenges in meeting the increasing demand for certain drugs, which has impacted their sales. This is happening despite their recent merger and a positive outlook for the company.
Cocoa prices reach new record high
Lastly, cocoa prices have reached a new record high due to dry weather in West Africa, where cocoa crops are grown. This is causing some problems for major chocolate makers, like Hershey, as it is expected to limit their earnings growth. This is particularly concerning because Valentine's Day, which is a significant time for the chocolate industry, is just around the corner.
Overall, the market is looking positive with the Dow Jones and S&P 500 continuing to go up. It is hoped that the year of the dragon will bring prosperity to businesses and markets.
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