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PepsiCo topped estimates, with EPS of $1.61 versus $1.55. Revenue of $19.44 billion beat expectations of $18.94 billion.
As noted by the company, “For the first time in more than two years, Pepsi’s North American food business reported an increase in volume. The division, a combination of its North American Frito-Lay and Quaker Oats units, has faced pushback from consumers for hefty price rises when inflation spiked in 2022. In February, Pepsi cut prices on Lay’s, Tostitos, Doritos, and Cheetos by as much as 15% to try to win back shoppers; the efforts are paying off already,” as reported by CNBC.
The S&P 500 and Nasdaq now sit at record highs.
Helping to fuel the rally, President Trump said the war with Iran is “very close to over,” as he noted in a Fox Business interview. In addition, Israel and Lebanon will hold talks today. Israel halting its attack on Lebanon has been a key condition for the Iran negotiations.
At the moment, the S&P 500 is up 0.1%, or by about seven points. The SPDR S&P 500 ETF (SPY) is up another 0.15% at $700.96. The Dow is up 0.18%, or by 86 points. The Nasdaq is up 0.18%, or by 47 points. Gold is up by about $13.50 at $4,815. Bitcoin is down about $100 at $74,715.
JPMorgan’s Warning to Wall Street
JPMorgan’s Jamie Dimon warned Wall Street not to get too comfortable.
One, inflation could reignite.
Dimon warned that inflation may not be fully under control, calling it the “skunk at the party.” A resurgence—especially driven by energy shocks—could force interest rates higher again, putting pressure on stocks, bonds, and real estate simultaneously.
Two, geopolitical risks are only increasing.
Dimon pointed to tensions in the Middle East, the war in Ukraine, and strained relations with China as potential catalysts for economic disruption. These conflicts are not just political—they directly affect supply chains, commodity prices, and global growth. Oil shocks in particular could ripple through inflation and consumer spending.
Three, there’s a market complacency issue. Dimon has repeatedly suggested that markets resemble periods before past downturns, with investors underpricing risk and chasing returns.
Goldman Sachs also warned that geopolitical risks are the key threat to global economic growth, driven by conflicts in the Middle East and Ukraine, and US-China tensions. These risks cause energy supply shocks, market volatility, and potential economic downturns, with analysts closely monitoring oil-driven GDP impacts.
Market Movers: TSMC Posted Record Profits
In its most recent quarter, TSMC posted a 58% jump in first-quarter profits, beating estimates and hitting new records thanks to unstoppable AI demand. Revenue was 1.13 trillion new Taiwan dollars ($35 billion) as compared to the $1.127 trillion estimate. Net income of NT$572.48 billion beat estimates of $543.32 billion.
TSMC forecasts full-year 2026 revenue growth of more than 30% year over year. It also forecast second-quarter revenue of $39 billion to $40.2 billion, or a 10% sequential increase.
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