Oil prices rise on tensions, PepsiCo's Q3 earnings: Morning Brief

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Pepsico News

Oil Prices,Seana Smith,Brad Smith

Morning Brief hosts Seana Smith and Brad Smith cover the latest developments in Middle East tensions, top trending stocks, and PepsiCo's (PEP) third quarter ...

) higher as investors consider the potential for supply disruptions. Invesco Chief Global Market Strategist Kristina Hooper joins the program to explainI'm Brad Smith alongside Sean Smith.Will that features are higher as the Dow and S and P 500 rebound from the worst trading day in a month.

Today, still traders are watching for any escalation between Israel and Iran and how that may impact the commodity.Now we want to bring in Christina Hooper, invests chief Global Market strategist Christina talk to us about this massive move higher that we saw in crude prices last week.We did see an additional move higher yesterday, here are today pulling back that spike that we've seen.

Whereas you might have seen in the past investors become fully risk off so long as they feel they have adequate geopolitical risk hedges, whatever they might be. I'm curious though just bringing it back here to the US and that move higher that we've seen in the bond market with yields.I think so many investors out there are trying to figure out exactly what this means for the move higher in equities.So I think we are going to see some fluctuations in treasury yields that reflects uncertainty around the economy and the Fed.Many investors were surprised over the last two weeks, we saw a stronger us economy than I think even the fed expected.

The last devastating storm to hit the US was Helene damages from that category four storm might cost over $30 billion according to analysis by core logic and its impact on the jobs market and the economy in the southeastern part of the country is still yet to be seen to discuss the storm's potential impact.

And, and when we think about that, where, what are the sectors within the labor market that tend to see the biggest impact as a result of, of these storms and the severity that we've seen to this juncture in the hurricane season.So for example, ports being closed or bridges and roads being washed out that affects transportation.

But certainly when we look at payrolls, um we could see some effects certainly from last week's Hurricane Helene which impacted at least three states. It seems when you have a higher than expected jobs report that just came out for the most recent month that they're also going to have to uh evaluate, especially as it relates to their own fed policy path pathway.We've been looking at the data over the last few months and, and our sense is that the US labor market is fine.

Let's take a look at Honeywell announcing plans to spin off its advanced materials division by early 2026.The business could reportedly be worth more than $10 billion on its own and is on track to bring in about 10% of Honeywell's overall revenue this year the move is part of the CEO S plan to focus on the three core trends of aviation automation and energy transition shares right now are up by about 2.5%.

Well, going forward very much focusing on three sectors of their business, aviation, automation and energy trans transition.The advanced materials business could be worth more than $10 billion. I was looking at the quick street reaction here this morning investor very positive on essentially what the signals just in terms of demand and and the healthy demand here going forward for that A I story.

Yeah, I'm old enough to remember last month in September when Needham had called this the coolest kid in A I town, their words from the analyst over there and no doubt that's translating through to at least our customers and some of their clients are potentially thinking about adding on to their orders.

Um even when they had started the investigation, China had into some of the brandy operators and the Brandy probe that they had initiated as well. Obviously, the impact that it is going to have on consumers, what this means for demand down the road for so many of these companies.

A bit of a reversal from yesterday's downward pressure where we saw the worst performance for the Dow and the S and P in just about a month, but it's a new day and you can see lots of smiles on the floor of the Stock exchange and hopefully the smiles will carry over into the market here this morning.Let's take a look at the three major averages.You've got the Dow and the S and P both trading to the upside here above the flatland dow up almost 100 here.

 

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