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Pre-Markets Up as Pepsi, Ralph Lauren Beat on Earnings

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Thursday, February 9th, 2023

Pre-market futures are higher this morning, following what looks like a profit-booking exercise across indices yesterday. Even new Weekly Jobless Claims and quarterly earnings report had virtually no effect on levels at this hour: the Dow is +230 points, the S&P 500 is +50 and the Nasdaq is +130 points.

Initial Jobless Claims for last week came in at the highest level since the first couple weeks of the year: 196K, following cycle lows at an unrevised 183K the previous week. That said, we remain toward the lower end of the 12-week cycle, which still averages over 200K new jobless claims going back to late November. Looking back to mid-summer last year, we saw this figure climb to around 260K new claims in a week. So we’re still well beneath that; question is: is that where we’re headed?

Continuing Claims, reported a week in arrears from new claims, also bumped higher in this morning’s print: 1.688 million is higher than the 1.650 million reported the previous week, which stands roughly in the middle of the 12-week cycle. The lows we saw here were back in June of ’22, where we flirted temporarily with just 1.3 million long-term claims per week — an historically low number that takes us all the way back to when the Beatles were still together.

PepsiCo (PEP - Free Report) reported Q4 earnings figures which, as per usual, outperformed expectations (PepsiCo has not missed on earnings estimates in well over a decade): earnings of $1.67 per share surpassed the Zacks consensus by 3 cents, and above the $1.53 per share reported in the year-ago quarter. Revenues of $28 billion beat expectations by +4.27%. The company’s top-line track record is exceedingly impressive, as well.

The soft drinks and snacks giant has not yet taken part in the strong run-up of 2023 stock markets, -5% year to date ahead of the earnings report. Pre-market trading has cut that basically in half. The company entered its Q4 report carrying a Zacks Rank #3 (Hold) and a Value - Growth - Momentum grade of C. For more on PEP’s earnings, click here.https://www.zacks.com/stock/news/2052121/pepsico-pep-tops-q4-earnings-and-revenue-estimates

Ralph Lauren (RL - Free Report) shares are up nearly +2% in today’s pre-market following beats on both top and bottom lines in the company’s Q3 report: earnings of $3.20 per share outpaced the $2.91 in the Zacks consensus on $1.83 billion in sales, which stepped past the $1.76 billion expected, and roughly flat year over year. The commercial fashion brand has not missed on earnings since the pandemic, and the stock continues its strong run from the start of the year.

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