Pepsi Fizzles, Stocks Bubble On

Dow Jones
Jul 10

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What Happened in Markets Today

Markets recovered from the exchange of strikes in the Middle East. President Trump said on Thursday that Iran has called him seeking a deal, though Iran hasn't confirmed this. The S&P 500 index rebounded by 0.8%, and the Nasdaq Composite index gained 1.3%. The Dow Jones Industrial Average climbed 139 points, or 0.3%.

Oil prices retreated. By session's end, brent crude futures were down 2%, to $76.30 a barrel. But the price surge this week demonstrated the fragility of the global oil market, where stockpiles remain dangerously low. New figures also showed tanker crossings on the Strait of Hormuz declined a bit yesterday.

PepsiCo shares fell after its earnings report. The beverage and snack giant reported a rise in sales volume for its North America unit, but a decline in revenue. The company lowered prices on snacks such as Doritos earlier this year. Its chief executive cited the strain of gas prices on family budgets. PepsiCo shares fell 3.3%.

Semiconductors gained ahead of a giant share sale. With SK Hynix on the verge of completing its $28 billion U.S. stock offering, the PHLX Semiconductor index rallied, rising more than 3%.

Costco shares slid on a monthly sales report. The warehouse retailer reported June sales figures growing slightly less than the prior month. Its shares slid more than 4%, among the biggest decliners in the S&P 500.

Existing home sales unexpectedly declined. Sales in the U.S. dropped month-over-month in June. If rising mortgage rates further strain affordability, the fear is that the housing market could be a drag on the economy in the back half of this year. Benchmark U.S. 10-year Treasury yields snapped a seven-session upward streak, dropping to 4.539%.

Markets at a Glance

One Big Story

The taboo against owning cigarette stocks hasn't gone away, but new gray areas are emerging. Companies that make a big share of their sales from smoke-free products like vapes appear to be rejoining polite society, and are getting a boost to their stock-market valuations as a result.

What's Coming Up

   -- Delta Air Lines is reporting earnings on Friday. 

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About Us

Markets P.M. catches you up on the day's most important markets moves, delivered after the closing bell. This email was written by Telis Demos, a writer for Heard on the Street, The Wall Street Journal's home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here's how to submit.

 

(END) Dow Jones Newswires

July 09, 2026 16:36 ET (20:36 GMT)

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