The stock market plunged on Friday as weaker-than-expected July jobs report heightened economic fears. Nonfarm payrolls grew by only 114,000 in July, lower than the 179,000 recorded in June and 185,000 projection. Meanwhile, unemployment rate increased to 4.3% from 4.1% in June.
Overall, S&P 500 contracted 1.8% to 5,347, while NASDAQ dropped 2.4% to 16,776.
Tweet of the Day
Metals decline is good news for lower inflation — and lower interest rates! https://t.co/upKmwCUHpX
— David Sharek (@GrowthStockGuy) July 29, 2024
Chart of the Day
Here is the one-year chart of Pepsico (PEP) as of July 21, 2024, when the stock was at $169.
PepsiCo had a poor performance last quarter as US volume declined. Management stated that inflation and high borrowing costs have resulted in tighter wallets within households. PepsiCo also said that consumers were more value conscious with their spending across brands (i.e. they are buying cheaper chips). Frito-Lay North America saw a 4% decline in volume, leading to a slight decrease in sales growth. Quaker Foods North America was particularly hard hit, with a 17% drop in volume this quarter, largely due to recalls for potential salmonella contamination announced in December. Profits grew 13% in 2021, 8% in 2022, and 12% in 2023. Now those days are over, and PEP seems like a 7% grower again.
PEP is a core holding in the Conservative Growth Portfolio.
