Stock Market Update

[BRIEFING.COM] The major averages are back near their opening lows, though the losses are relatively modest in nature.

PepsiCo (PEP 125.84, +2.11, +1.71%) is modestly higher following a mixed Q3 earnings report that featured better-than-expected earnings and revenue, but also a reduction in its FY26 outlook. Core EPS of $2.34 and revenue growth of 5.6% to $25.27 billion both exceeded expectations, while the company lowered its FY26 core EPS growth forecast to 2.5--3.5% from the low end of its prior 5--7% outlook, reflecting a slower-than-anticipated recovery in North America.

The modest gain may reflect some relief over sequential improvement in North American demand, particularly with shares entering the report near 52-week lows. However, profitability remains under pressure, and the reduced outlook highlights the challenges still facing the company's turnaround. PepsiCo is not a component of the S&P 500 or DJIA, but peer Coca-Cola (KO 87.00, +1.18, +1.37%), which is included in both indexes, is posting a solid gain amid broad strength in the consumer staples sector (+1.5%).