Good Evening. U.S. stocks ended Wednesday’s session slightly lower, as producer price data showed inflation inched up last month and a readout of Federal Reserve meeting minutes affirmed officials were likely to proceed with their rate-hiking plans.
The S&P 500 finished down by 0.33%, while the Dow Jones dropped 0.10%. The Nasdaq Composite also shed 0.09%. All three gave up previous gains throughout the day.
STRONG EARNINGS
PepsiCo’s (PEP) strong performance in the third quarter startled many on Wall Street who were anticipating a negative outlook on the economically distressed consumer, similar to Nike and FedEx’s recent statements.
Here is PepsiCo’s performance relative to Wall Street forecasts:
- Net Sales: $21.97 Billion vs. $20.81 Billion expected
- Organic Sales Growth: +16% vs. +9.1% expected
- Earnings Per Share: $1.97 vs. $1.84 expected
“Historically we have done well as we have moved into recessions,” Johnston stated on Yahoo Finance Live. “A 16% [organic sales] growth rate for PepsiCo is an extraordinary number. But that said, we do think that we will continue to perform pretty well regardless of the economic environment.”
Going forward… PepsiCo remains dedicated to repaying shareholders via dividends and share repurchases. The company expects to return $7.7 million in cash to shareholders in 2022, including $6.2 million in cash dividends and $1.5 billion in share repurchases.
OUT WITH RIVIAN, IN WITH POLESTAR
Polestar has unveiled its most recent innovation, the Polestar 3 electric SUV. Where the Polestar 3 will be manufactured is perhaps more intriguing than its excellent specifications.
“Polestar 3 is a powerful electric SUV that appeals to the senses with a distinct, Scandinavian design and excellent driving dynamics,” stated Polestar CEO Thomas Ingenlath. “It takes our manufacturing footprint to the next level, bringing Polestar production to the United States. We are proud and excited to expand our portfolio as we continue our rapid growth.”
Beginning in mid-2023, Polestar will begin global production of the SUV at Volvo’s facility in Chengdu, China. However, beginning in mid-2024, Polestar will relocate production for North America and other markets to Volvo’s plant in Ridgeville, South Carolina.
How much will it cost? Customers in launch regions can already submit orders on the Polestar website for the Polestar 3 in Long range Dual motor version, which will be available at launch for a starting price of $83,900, according to the firm.