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News
Friday, July 10, 2026
What’s happening: Shares of PepsiCo fell on Thursday after the company released its results for the second quarter.
What happened: The snack and beverage giant reported upbeat sales for the latest quarter, while earnings fell short of expectations.
PepsiCo’s sales growth being fuelled by international markets, with US volumes remaining flat, weighed on the stock.
How were the results: The Purchase, New York-based company reported single-digit sales growth for the second quarter.
Why it matters: PepsiCo and other packaged food firms have been impacted by low customer spend and are trying to trigger sales by lowering prices and announcing significant investments in healthier offerings.
The company had slashed prices in North America on Lay’s and Doritos by up to 15% to bring back consumers, who seem to be moving towards cheaper options amid inflation concerns.
Also, food and beverage firms faced higher packaging and logistics costs with rising fuel prices amid the US-Iran war.
While revenues from the PepsiCo Foods North America segment contracted by 2%, the Beverages North America generated 7% growth.
Meanwhile, international organic revenues surged 7% during the quarter, recording at least mid-single-digit growth for the 21st straight quarter.
Global organic volumes rose 3% for convenient foods and 2% for beverages. The company’s operating profits jumped 125% to $4.02 billion, while operating margins expanded by 875 basis points to 16.6%.
PepsiCo maintained its fiscal 2026 sales and adjusted earnings guidance at $97.68-$99.56 billion and $8.55-$8.71 per share, respectively.
Management also warned of higher commodity costs during the second half of the year.
How shares responded: PepsiCo’s shares declined 3.3% to close at $137.86 on Thursday following the release of quarterly results. The stock has gained around 3% over the past year.
What to watch: Investors will keep an eye on the company’s upcoming offerings and further price cut announcements. Markets will also watch consumer trends and inflation figures.
Context: The Japanese yen rose against the US dollar this morning amid weakness in the greenback.
Details: Data released this morning showed that Japan’s producer prices surged 7.1% year-over-year in June, accelerating from the previous month’s 6.6%. The figure also came in higher than market estimates of 6.8%.
The latest reading signalled the fastest annual growth since March 2023, amid continuous cost pressures driven by rising energy prices due to supply chain concerns related to the US-Iran war.
On a monthly basis, producer prices in Japan rose 0.4%, compared to a 1.1% surge in May. This marked the slowest monthly rise in four months.
Meanwhile, the US dollar index recorded losses for the third consecutive session amid news of continuing peace talks between Washington and Tehran, despite the recent escalation in tensions between the two countries.
Lower prices of crude oil also helped ease inflation worries and investors scaled back speculations of monetary policy tightening by the Federal Reserve, exerting pressure on the US dollar.
Weakness in the US dollar lent support to the Japanese yen this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.3% to 100.62.
The USD/JPY forex pair fell around 0.5% to 161.55 this morning, while the Nikkei 225 index rose 1.7% to trade at 68,894.25.
What to watch: Investors will keep an eye on further developments in the US-Iran negotiations.
Data on capacity utilisation and industrial production from Japan will be released on Tuesday. The capacity utilisation index, which fell 0.8% in April, is expected to rise by 0.9% in May. Analysts expect industrial production to decline 1.7% year-over-year in May following 2% growth in the previous month.
Other Markets: US trading indices closed higher on Thursday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 0.27%, 0.81% and 1.62%, respectively.
Russia hit an ammunition warehouse during its recent attack on Ukraine’s Kyiv region. The news sent the USD/RUB pair lower in forex trading this morning.
Indonesia’s new car sales surged 12.0% year-over-year to 77,550 units in June, after a 14.0% gain the previous month. New car sales growing for the third straight month exerted pressure on the USD/IDR forex pair.
Sri Lanka’s foreign tourist arrivals declined by 9.9% year-over-year to 124,551 in June, following a 9.6% gain in the previous month, which sent the USD/LKR pair slightly higher in forex trading this morning.
Peru’s Central Reserve Bank left its benchmark interest rate unchanged at 4.25% during its recent meeting, in-line with market estimates, which exerted pressure on the USD/PEN forex pair.
Mexico’s annual inflation rate slowed to 3.37% in June from 3.94% in the previous month. This being the lowest reading since December 2020 and coming in better than market estimates of 3.52% sent the USD/MXN pair lower in forex trading this morning.
Italy’s industrial production (1200 UAE Time), India’s bank loan growth (1530 UAE Time), deposit growth (1530 UAE Time) and foreign exchange reserves (1530 UAE Time), Brazil’s inflation rate (1600 UAE Time), Mexico’s industrial production (1600 UAE Time), Canada’s unemployment rate (1630 UAE Time), employment change (1630 UAE Time), participation rate (1630 UAE Time), average hourly wages (1630 UAE Time) and building permits (1630 UAE Time), Russia’s inflation rate (2000 UAE Time) as well as US WASDE report (2000 UAE Time), Baker Hughes oil rig count (2100 UAE Time) and Baker Hughes total rigs count (2100 UAE Time).
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