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Wall Street set to gain as Pepsi results add to earnings optimism

Reuters 

By Amy Caren Daniel

(Reuters) - Wall Street was set to open higher on Tuesday as PepsiCo's quarterly report signaled a strong start to the U.S. corporate earnings season, overshadowing concerns over a possible escalation in trade wars.

PepsiCo's shares rose 2.4 percent in premarket trading after the company's quarterly revenue and profit topped analysts' estimates on strong sales in its unit.

"The first major earnings report came out, and PepsiCo's earnings beat expectations and that's a good start for the market," said Peter Cardillo, at in

"The trade conflict is far from over and could eventually have a very negative impact on equities, but for now it is taking a back seat only because we are entering into the earnings season."

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

Wall Street has gained for three straight days on strong U.S. jobs data, mild inflation numbers and earnings optimism.

But, investors and analysts will parse quarterly reports to gauge the impact of China's tariffs, which are expected to hit a range of U.S. industrial sectors.

On Tuesday, China's commerce ministry raised "anti-dumping tariff rates" for some U.S.-made products, effective July 11.

The U.S. small confidence index fell 0.6 points to 107.2 in June, according to the National Federation of Independent Cardillo said the "disappointing" report is another sign that the trade dispute is worrisome for corporate

At 8:50 a.m. ET, Dow were up 61 points, or 0.25 percent. were up 4 points, or 0.14 percent and were up 9 points, or 0.12 percent.

Also helping the market was a jump in due to growing supply outages. shut one oilfield due to a workers' strike and said its output had more than halved. [O/R]

rose 2.3 percent. The U.S. automaker signed agreements to open a plant in with an annual capacity of 500,000 cars, reported.

Shares of Alliance dropped 1 percent after Evercore ISI cut its rating on the stock to "in line" from "outperform."

Rating downgrades on eBay, and also pulled shares of the three components down between 1.4 percent and 2.1 percent.

(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. 18:44 IST
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