Stock Market Update

[BRIEFING.COM] The major averages trade in a relatively tight range slightly above opening session lows. 

While the consumer staples sector's flat performance does not strike much interest at first glance, the sector has arguably had the busiest morning from a stock-specific storyline perspective. 

Kraft Heinz (KHC 26.54, -1.44, -5.13%) is among the worst-performing S&P 500 stocks after announcing the company will split into two independently traded names. One segment will be temporarily called "Global Taste Elevation Co." will include three billion-dollar brands (Heinz, Philadelphia, and Kraft Mac & Cheese), with approximately 75% of sales coming from sauces, spreads, and seasonings.

Then there will be its "North American Grocery Co." which also includes three billion-dollar brands (Oscar Mayer, Kraft Singles, and Lunchables). Current KHC CEO Carlos Abrams-Rivera will become CEO of this segment.

Constellation Brands (STZ 151.12, -10.82, -6.68%) is also a laggard this morning after the company lowered its FY26 EPS guidance, citing dampened consumer demand and more volatile consumer purchasing behavior.

On the bright side, PepsiCo (PEP 152.35, +3.70, +2.49%) trades higher today after Elliott Investment Management took a $4 billion stake in the company, referring to the stock's underperformance as a historic opportunity. 

In economic data, total construction spending decreased 0.1% month-over-month in July (Briefing.com consensus: 0.2%) following a 0.4% decline in June. Total private construction was down 0.2% month-over-month, while total public construction was up 0.3% month-over-month. On a year-over-year basis, total construction spending was down 2.8%.

The key takeaway from the report is that the softness in July was led by private nonresidential spending, although private residential spending (+0.1%) wasn't exactly strong either.