Business

Oil Prices Spike to 13-year high as Dow futures fall more than 300 points

As U.S. equity futures fell late Sunday evening as U.S. oil prices rose to their highest level since 2008 amid the ongoing war between Russia and Ukraine, U.S. equity futures dipped.

The Dow lost 331 points, or 0.9%, while the S&P 500 futures and Nasdaq 100 futures both fell by 1.3% and 1.8%, respectively.

During the week, West Texas Intermediate crude futures, the U.S. benchmark for crude oil, traded upwards of 10%, reaching $130 per barrel at one point. However, it sagged back a bit. It is also the highest Oil Price since 2008 for Brent crude, an international benchmark, which traded 9% higher to $128.60.

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The Minister of State for Foreign Affairs Antony Blinken said on Sunday, in retaliation for the country’s attack on Ukraine, that he and his allies may consider banning Russian oil and natural gas imports. AAA reports a spike in gas prices, with the national average averaging $4 per gallon, which is the highest level since 2008.

As a result of Russia’s violation of a cease-fire agreement on July 31 and continued fighting in both cities, it has been decided to cancel all planned evacuations from the cities Mariupol and Volnovakha on Saturday. The Mariupol City Council has announced that the Russian army has again violated the terms of a temporary ceasefire set up so that civilians could leave the city.

The Dow Jones Industrial Average fell 179 points, or 0.5%, on Friday, tying its fourth successive week of losses. Despite the drop of 0.7% and the closing of more than 10% from its record close, the S&P 500 has experienced a technical correction. Also, Nasdaq Composite lost 1.6% of its value.

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The moves were made as investors remained closely following the developments in the war between Russia and Ukraine, which weighed heavily on sentiment despite the positive economic data released on Friday by the U.S.

Rather than just all of a sudden jumping out and getting out of the market, investors are switching from Europe to the U.S., away from cyclicals and towards bigger, defensive companies,” said Lindsay Bell, Ally’s chief markets and money strategist in a recent interview on CNBC’s “Closing Bell.” “That is a positive sign, but what we need to see is re-rotation back to the growthier, riskier areas of the market to show that the risk-on mode might

As oil prices began to rise, energy stocks in the market provided a bright spot. One of the biggest winners was Occidental Petroleum which rose by 17 percent. Furthermore, bank stocks, which are likely to benefit from higher interest rates, were down as the benchmark 10-year Treasury fell to around 1.73%.

This was the first time since March 2020 that European equities had been down sharply, ending the week with a 7% drop, marking their worst week since March 2020. Despite being one of the few Russia-linked funds still trading, the VanEck Russia ETF dropped 2% to end the week down more than 60%.

The positive data released by the United States Bureau of Labor Statistics (BLS) was not enough to convince investors to dismiss concerns about the ongoing conflict between Russia and Ukraine. According to the Bureau of Labor Statistics, there were 678,000 jobs in February, the most recent data available. It is estimated that Dow Jones economists had expected a job gain of 440,000 for the month of May. Accordingly, the unemployment rate decreased to 3.8%.

The Dow, S&P 500, and Nasdaq Composite fell by about 1.3% each for the week. It was a loss of about 2.8% for the Nasdaq Composite.

In Jeff Sherman’s view, the bond market ignored the jobs report completely because persons wanted to be defensive over the weekend, and in light of the unfolding situation, people did not want to run the risk that had been mentioned, Jeff Sherman, deputy chief investment officer at DoubleLine Capital, said on “Closing Bell” Friday. “The Treasury market right now is not focused on the backward-looking economic data; it’s focused on the situation in the Ukraine and the crisis we are currently facing.”

In the week ahead, several reports on the economy are scheduled to be released, including the Consumer Oil Price Index, which is scheduled for release on Tuesday. During the week ahead, the key indicator is likely to show that inflation remains on an upward trend, which will keep stock markets volatile.

In the coming days, the JOLTS survey, which measures job openings and labor turnover, or JOLTS, will be released.

This week’s earnings are likely to be quieter than last week’s. Several big technology companies are expected to report earnings, including Oracle, CrowdStrike and DocuSign. A number of other companies, including Rivian Automotive, Ulta Beauty and Bumble, will also be reporting.

Also Check: Euro Drops to Lowest Since June 2020 as Russia Invades Ukraine

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP