PepsiCo Rises After Profits Surprise Analysts

Defense stocks give back some of their gains
By Newser Editors and Wire Services
Posted Oct 10, 2023 3:33 PM CDT
Stocks Rise as Pressure From Bond Market Eases
Specialist Dilip Patel works at his post on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew)

Stocks closed higher Tuesday as pressure relaxed on Wall Street from the bond market.

  • The S&P 500 rose 22.58 points, or 0.5%, to 4,358.24.
  • The Dow Jones Industrial Average rose 134.65 points, or 0.4%, to 33,739.30.
  • The Nasdaq composite rose 78.60 points, or 0.6%, to 13,562.84.
Treasury yields eased considerably after trading resumed following a holiday on Monday. It was the first opportunity for yields to move since the weekend's surprise attack by Hamas on Israel and since Federal Reserve officials gave speeches that suggested the Fed may not hike rates again.

Treasury yields had jumped last week to their highest levels in more than a decade, following the lead of the Fed's main interest rate, which is at heights unseen since 2001. They've been the main reason for the stock market's stumbles since the summer, as worries rise that the Fed will keep its federal funds rate at a high level for longer than Wall Street hopes. High rates and longer-term yields knock down prices for stocks and other investments, while slowing the economy in hopes of undercutting high inflation. But the swift rise in the 10-year Treasury yield has helped pull the average long-term mortgage rate up to its highest level since 2000, and Fed officials have intimated that such moves may help contain high inflation on their own, the AP reports.

On Wall Street, some of Monday's big stock moves also retraced themselves. Stocks of defense contractors that make weapons gave back some of their big gains, and Northrop Grumman slipped 1.4%. L3Harris Technologies fell 1.5%, though both are still up more than 8% for the week. Airline stocks also clawed back some of their losses. They have already suspended flights into and out of Israel, and they count fuel among their highest costs. Delta Air Lines rose 1.6%, and United Airlines climbed 1.5%.

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PepsiCo rose 1.9% after it reported stronger profit and revenue for its latest quarter than analysts expected. The snack and drink company charged higher prices for its products during the quarter, which helped to make up for a drop in how much it sold. It also raised its forecast for profits for the full year. (More stock market stories.)

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