As Friday’s trading session looms, investors are keenly focused on Delta Air Lines’ upcoming earnings report and CEO interview. Meanwhile, PepsiCo shares rallied despite a cut in earnings growth guidance, praised by Jim Cramer for its strong sales and dividend appeal. The broader market will also watch rising French bond yields and a robust energy sector fueled by surging oil prices.
Wall Street is gearing up for a pivotal Friday, with several key movers poised to dictate the market's direction. The artificial intelligence trade softened on Thursday, shifting investor focus to traditional fundamentals and macroeconomic indicators.
All eyes are on Delta Air Lines as the aviation giant prepares to release its latest earnings report early Friday morning ET. CEO Ed Bastian is slated for a live interview on CNBC's "Squawk Box" shortly after. This report comes at a critical time for Delta, with its stock having shed nearly 6% over the past three months and a significant 14% drop from its July 2 high, as reflected in its three-month chart.
Meanwhile, PepsiCo delivered a fascinating performance on Thursday, seeing its stock pop almost 4% despite revealing reduced guidance for earnings growth. CNBC's Jim Cramer lauded the consumer staple, highlighting strong organic and net revenue, alongside an earnings per share beat. Cramer emphasized that while the outlook for earnings growth was trimmed to 2.5% to 3.5%, "there's nothing wrong with Pepsi's sales." He attributed some price adjustments to smart strategy by CEO Ramon Laguarta, adding, "You can do a lot worse than buying Pepsi down here." With its stock down 10.6% year-to-date and offering a robust $5.92 annualized dividend yielding 4.61% as of Thursday, PepsiCo presents a compelling case for income-focused investors, despite being 25% off its February high.
Across the Atlantic, France is drawing attention with its 10-year government bond yield hovering around 4.8%. This rise in European yields is impacting major French equities. The iShares MSCI France ETF (EWQ), which tracks prominent companies like Renault, Carrefour, Total, Dassault, Danone, and L'Oréal, has declined 2% this week and 9% over the past month, as evident in its one-month performance chart. Global investors will be monitoring European bond markets closely for signs of broader economic shifts.
Finally, the Oil and Energy sector continues its powerful run. Brent crude futures were last seen around $104 a barrel, while West Texas Intermediate crude futures traded near $91. The S&P Energy sector has climbed 3.8% this week, with every stock in the sector showing gains. Marathon Petroleum and Valero have led the charge, both surging over 9%, while integrated giants ExxonMobil and Chevron each posted more than 2% increases. This upward trajectory in energy prices and sector performance underscores ongoing supply concerns and robust demand expectations.
