Following PepsiCo’s Footsteps, Coca-Cola Co. Posted Strong Quarterly Results

U.S. equity futures are trading moderately higher in late today’s pre-market after recording gains in the previous session. The Dow Jones jumped by more than 400 points yesterday after all the three major indices recorded their best week since June.

As of 3:40 p.m. CET, the futures for the Dow Jones Industrial Average are still in the red by just 0.05% to 31,456, while the S&P500 index futures are advancing by 0.31% to 3,807. Futures for the Nasdaq Composite index are also edging higher by 0.66% to 11,502. Among the most prominent publications tonight, it’s the S&P Case-Shiller home price index for August scheduled for release at 9:00 a.m. EST. Consensus estimate is for the monthly rate decline of 0.8% in August, following a 0.4% drop in July. The FHFA house price index for August will also be released at that time, while the Conference Board's consumer confidence index for October and Richmond Fed's manufacturing index for October will be released at 10:00 a.m. EST. The Federal Reserve is among central banks that are now encountering accounting losses on their massive bond holdings, which were accumulated as part of their economic stimulus efforts in recent years. The U.S. Treasury is said to expect a “stunning swing” from receiving about $100 billion last year from the Fed to a potential annual loss rate of $80 billion by year-end.

Commoditywise, crude oil prices traded lower as Brent Crude futures fell 1.2% to $90.11 per barrel, while U.S. WTI crude futures eased by 1.4% to trade at $90.11 a barrel. The American Petroleum Institute’s data on crude oil stocks will be released later tonight amidst deepening distillates (essentially, diesel fuel) supply crisis. Gold futures are trading lower by 0.5% to $1,646.60/oz, while silver traded down 1.7% at $18.865 an ounce at the time of writing.

Earningswise, The Coca-Cola Company (KO) reported earlier today that its Q3 2022 net revenues came in at $11.1 billion, up 10% YoY, surpassing market estimates. The soft drinks' mogul also noted that its EPS rose by 14% to $0.65, while operating income grew 7%. Those numbers play well with earlier rival PepsiCo’s upbeat quarterly results. KO’s cashflow from operations, however, stood at $8.1 billion YTD, posting a decrease of $1.2 billion on an annual basis. However, Coca-Cola raised its FY outlook and ”expects to deliver organic revenue (non-GAAP) growth of 14% to 15%.” Earlier today this European afternoon, HSBC Holdings plc (HSBA.L) announced its Q3 revenues decreased by 3% over the year to $11.6 billion. The bank's profit before tax also deteriorated by $1.7 billion to $2.6 billion YoY, as its profit after tax fell by $2.3 billion to $3.1 billion. The bank's diluted EPS landed at $0.10, in contrast with last year's $0.18.

European markets are trading mixed today. The Pan-European Stoxx Europe 600 Index is adding 0.46%, the British FTSE 100 eased by 0.65% while the German DAX dropped 0.12%, but the French CAC 40 Index rose 0.68%. The Germany’s Ifo Business Climate indicator fell to 84.3 in October, landing the weakest level since May 2020.

Asian markets also didn’t demonstrate a clear direction this morning. Japan’s Nikkei 225 rose 1.02% and Australia’s S&P/ASX 200 added 0.3%, however, China’s Composite Index fell 0.04%, while Hong Kong’s Hang Seng Index fell 0.1% and India’s S&P BSE Sensex dropped by 0.4%. Hong Kong’s trade deficit widened to $44.9 billion in September from $42.4 billion in the year-ago month.