We wake to a new trading day looking at the relatively minor economic report (compared to the PPI and especially CPI, due out over the next couple of days) on the National Federation of Independent Businesses (NFIB) Business Optimism Index for September. The headline number of 90.8 is the lowest registered in the past four months, and lower than the 91.4 analysts were expecting.
Independent owners — generally referring to small businesses — believe inflation is the biggest headwind to growth going forward, or at least a plurality of them (23%) do. Owners reportedly still pessimistic about future business conditions. Small business growth has already notably slowed. This all said, today’s 90.8 is still well above where we were in April and May, sub-90.
PepsiCo PEP kicks off Q3 earnings season for the nondurable consumer discretionary space. Predictably, the company beat estimates on its bottom line as it always does, with earnings of $2.25 per share outpacing the $2.17 expected, for a +3.7% positive surprise. Revenues of $23.45 billion in the quarter slightly outperformed the Zacks consensus by +0.32%. PEP shares are up +1.5% in today’s pre-market on the news, though still down nearly -10% year to date, even as the company also raised Q4 profit guidance. For more on PEP’s earnings, click here.
Pre-market indices are slightly positive at this hour — all but the small-cap Russell 2000, which has underperformed the other main indices over the past week, month and year to date. Otherwise, we’re off last week’s near-term lows, which we hadn’t encountered since just after Memorial Day. Late 2021 all-time highs are still a ways off — as well as any idea whether catalysts to push these indices higher are in the cards — but compared to the doldrums we’d been facing prior to last week’s jobs numbers, and with 10-year bond yields remaining historically lofty, we’re not doing too badly.
Wholesale Inventories are out after today’s opening bell, and the Producer Price Index (PPI) hits the tape tomorrow morning. Thursday morning brings us the all-important Consumer Price Index (CPI) report, along with Q3 earnings releases from Delta Air Lines DAL, Walgreens Boots Alliance WBA and Domino’s Pizza DPZ, among others. Friday morning brings us Q3 results from the first of the big Wall Street banks.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Domino's Pizza Inc (DPZ) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report
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