Good Evening. After a brief respite in the previous session, US stocks dropped again on Tuesday, extending what has mostly been a steady sell-off this month. Investors are anticipating a slew of mega cap tech earnings reports in the coming days, with Microsoft (MSFT) and Alphabet (GOOGL) reporting after the bell.
The S&P 500 index lost 2.81%, while the Dow Jones dropped 2.38%, continuing losses following a 500-point gain on Monday. The Nasdaq Composite Index fell nearly 4.00% on its lowest day since March 7.
BATTLE OF THE BRANDS
Yesterday we told you about Coke, today their rival. According to Bloomberg, PepsiCo (PEP) posted higher-than-expected quarterly earnings of $1.29 per share, exceeding analysts’ expectations of $1.23 per share.
Higher prices and a resurgence in demand for its sodas at theaters and restaurants helped the beverage and snack company improve its full-year revenue prediction. Pepsi now expects organic sales to expand by 8% in fiscal 2022, up from its previous prediction of 6%.
PepsiCo CEO Ramon Laguarta said in the earnings release, “looking ahead, we will focus on controlling what we can, such as enhancing our focus on productivity and sharpening our revenue management capabilities, while also continuing to make the necessary long-term investments to fortify our businesses and win in the marketplace.”
At closing, PEP saw little change staying around $173 per share.
HOME PRICES KEEP GOING UP

The rate of increase in home prices in the United States quickened in February, but a slowdown may be on the way.
Standard & Poor’s reported on Tuesday that its S&P CoreLogic Case-Shiller national home price index increased by 19.8% in February, up from 19.1% in January. Since the index’s inception in the 1980s, this is the third-highest reading.
The yearly growth in the 10-City Composite was 18.6%, up from 17.3% the previous month. The 20-City Composite increased by 20.2% year over year, up from 18.9% the month before.
“The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer,” said Craig J. Lazzara, managing director and global head of index investment strategy at S&P DJI, in a statement. “The post-COVID resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response.” He goes on to say “we may soon begin to see the impact of increasing mortgage rates on home prices.”