Good Evening. Tuesday saw a steep decline in U.S. stocks for the second straight session as investors awaited June inflation data. With oil prices under pressure and the dollar edging closer to breaking parity with the euro, the commodity and currency markets were in the spotlight for the majority of the trading day.
The Dow Jones sank 0.62%, while the S&P 500 and Nasdaq Composite both ended the day down 0.92% and 0.95% respectively.
HIGH INFLATION? NO PROBLEM
Despite decades-high inflation, PepsiCo Inc. (PEP) increased its full-year revenue prediction and indicated that it may boost prices even further in the coming months.
- Revenue: $20.32 Billion vs. $19.51 Billion estimated
- Earnings Per Share: $1.29 vs. $1.23 estimated
Like other manufacturers of packaged foods, PepsiCo was compelled to raise the pricing of its products as a result of pandemic-related disruptions to the world supply chain and rising raw material costs. However, several retailers objected to the price increases, citing a decline in consumer demand.
Hugh Johnston, the chief financial officer of PepsiCo, told Reuters that the business has not observed any slowdown in demand as a result of the price increases. This was put into place late last year, and there was still an opportunity for prices to rise even higher.
How Can Pepsi Do This? PepsiCo and Coca-Cola Co. have the ability to determine how much they can raise prices due to their lack of competition and their large market share.
ORDER FOR EV DELIVERY?
In order to reach net-zero emissions by 2040, Walmart Inc. has agreed to purchase 4,500 electric vehicles from Canoo Inc. On top of that, Walmart has the option to buy up to 10,000 units, as it electrifies its delivery fleet.
The Canoo-Walmart agreement also covers the Lifestyle Delivery Vehicle (LDV) from the EV startup, which is entirely electric. Speaking of LDVs, Canoo plans to begin producing them in the fourth quarter of 2022.
Walmart has already started preparing by placing a reservation for 5,000 electric delivery vans through BrightDrop, General Motors’ commercial EV division.
And… With the producers of electric, hydrogen, and natural gas-powered cars, including Cummins Inc. and Daimler Truck’s Freightliner, Walmart announced in June that it was expanding transportation trial programs.
Walmart isn’t the only one to start to change to all-electric. Businesses including FedEx Corp, Amazon.com Inc, and United Parcel Service Inc. promise to convert their delivery fleets to electric vehicles.