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PepsiCo, oil help extend Wall Street rally; S&P at four-month high

Reuters 

By Amy Caren Daniel

(Reuters) - U.S. stocks rose on Tuesday, with the 500 at a four-month high, as got a boost from higher crude prices and strong results from signaled a solid start to the earnings season.

PepsiCo's shares surged 3.9 percent and were poised for their biggest one-day jump in nearly seven years after the company's quarterly results topped estimates on strong sales of snacks.

The company also reaffirmed its full-year forecast amid signs of a gradual recovery in its soda business.

drove a 0.82 percent gain in the consumer staples index, with rising 1 percent.

The rose 0.62 percent as crude prices gained on growing supply disruptions in and Libya, but gains were pared after the said it would consider requests for waivers from Iranian

Shares of and were up around 1 percent each.

"The market is in a very optimistic mood. The economic data is very strong and the labor markets are strong, and companies are making a lot of money," said Randy Frederick, for in

Overall, 500 companies are expected to post second-quarter profit growth of around 21 percent, slightly higher than what was forecast in April, according to data.

However, investors and analysts will parse quarterly reports to gauge the impact of an escalating trade dispute between and the on company earnings.

"In the end eventually the trade war could impact things but right now the economic data and other things are too strong that they are overshadowing the trade war," Frederick said.

Wall Street rose for a fourth straight session. At 12:45 p.m. EDT, the 500 was up 8.24 points, or 0.30 percent, at 2,792.45. The index reached a peak of 2,795.58, its highest since March 13.

The was up 137.75 points, or 0.56 percent, at 24,914.34 and the was up 10.56 points, or 0.14 percent, at 7,766.76.

Ten of the 11 S&P sectors were higher, led by a 1.20 percent gain in the The lone laggard were financials, off 0.39 percent after a 2.3 percent surge on Monday.

JPMorgan Chase, and are scheduled to report results on Friday. Their shares fell between 0.3 and 1.3 percent.

dropped 4.5 percent, the most on the S&P, after the issued a bleak sales forecast for the rest of 2018.

was the second-biggest loser on the S&P, falling 4.3 percent after Evercore ISI downgraded the stock to "underperform".

Declining issues outnumbered advancers for a 1-to-1 ratio on the NYSE and a 1.37-to-1 ratio on the Nasdaq.

The S&P index recorded 28 new 52-week highs and no new lows, while the Nasdaq recorded 88 new highs and 18 new lows.

(Reporting by in Bengaluru; Editing by Anil D'Silva)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 22:45 IST
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