Business

Pepsi, Oil Drive S&P 500 to Four-month High

Published

6 years ago

July 10, 2018

Pepsi, Oil Drive S&P 500 to Four-month High

U.S. stocks rose on Tuesday, with the S&P 500 hitting a four-month high, as energy companies got a lift from firming oil prices and strong results from PepsiCo signaled a flying start to the second-quarter earnings season.

PepsiCo’s shares surged 3.7 percent and were poised for their biggest one-day jump in nearly seven years, after the company’s second-quarter results topped estimates on strong sales of snacks.

The company also reaffirmed its full-year forecast amid signs of a gradual recovery in its soda business.

PepsiCo’s surge helped drive a 0.66 percent gain in the consumer staples index, the most among the 11 major S&P sectors. Rival Coca-Cola rose nearly 1 percent.

The energy index was the next biggest gainer, rising 0.72 percent as oil prices rose due to growing supply outages.

Shares of Exxon, Chevron and Schlumberger were all up around 1 percent.

“We have a fairly broad rally in the market today. We have a market that is generating added enthusiasm ahead of earnings.” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville.

Overall, S&P 500 companies are expected to post second-quarter profit growth of around 21 percent, slightly higher than what was forecast in April, according to Thomson Reuters data.

However, investors and analysts will parse quarterly reports to gauge the impact of an escalating trade dispute between China and the United States on company earnings.

“I believe investors have been put through an emotional roller coaster with the trade situation with China. If the market can see solid second-quarter earnings come through, that’s going to diminish the concern of tariff and trade wars,” Bakhos said.

At 11:26 a.m. EDT, the S&P 500 was up 6.60 points, or 0.24 percent, at 2,790.77. The index reached a peak of 2,795.58, its highest since March 13.

The Dow Jones Industrial Average was up 120.48 points, or 0.49 percent, at 24,897.07, and the Nasdaq Composite was up 7.29 points, or 0.09 percent, at 7,763.49.

Ten of the 11 S&P sectors were higher, with the trade-sensitive industrial sector slightly lower. The financial sector was flat, after a 2.3 percent surge on Monday.

JPMorgan Chase, Wells Fargo and Citigroup are scheduled to report results on Friday, kicking off the earnings season in earnest. Their shares were little changed.

Tesla Inc rose 1.4 percent after CEO Elon Musk landed a deal with Chinese authorities to build a new auto plant in Shanghai, its first factory outside the United States, that would double its manufacturing capacity.

Rating downgrades on eBay, Chipotle Mexican Grill and Cerner also pulled shares of the three S&P 500 components down between 1.7 percent and 4.6 percent.

Advancing issues outnumbered decliners by a 1.08-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.17-to-1 ratio on the Nasdaq.

The S&P index recorded 27 new 52-week highs and no new lows, while the Nasdaq recorded 85 new highs and 14 new lows.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Business

How Public-Private Partnership Projects Attracted $500m Investment – FG

Published

12 hours ago

September 19, 2024

Bassey Marshall

Public-private partnership (PPP) projects appear to be of great benefit to Nigeria, particularly within the last year.

Within this period, these projects have attracted over $500 million worth of investment, according to the Infrastructure Concession Regulatory Commission (ICRC).

The Director-General of the ICRC, Dr. Jobson Ewalefoh made this known during his courtesy visit to the Minister of Interior, Hon. Olubunmi Tunji-Ojo.

During the visit, Ewalefoh felicitated with Dr. Tunu-Ojo as the latter was honoured with the PPP Icon Award.

According to him, the $500 million in investments through various PPP projects wouldn’t have been possible without Dr. Tunji-Ojo.

To ensure compliance with statutory requirements, Ewalefoh detailed that the commission will carry out a performance audit of all PPP projects

To him: “We have mechanisms in place to begin auditing PPP agreements, not to terminate them but to optimize them for national benefit. Compliance with the insurance policy is key to protecting our national assets under these partnerships.”

Minister Ojo received praise from Dr. Ewalefoh for his efforts in revenue generation and the continuation of abandoned projects.

Ewalefoh revealed that the past year has the highest number of PPP projects presented to the Federal Executive Council (FEC), a development he attributed to the efforts of the Ministry of Interior.

On the other hand, Minister Tunji-Ojo said the government is more focused on fostering private-sector participation.

To him, this will help bridge resource gaps and create a conducive environment for investments.

Key PPP initiatives within the Ministry include the e-gate system, the Advanced Passenger Information System, and the upcoming Gap Management System, as detailed by the minister.

Minister Ojo signifies that the $500 million investment recorded in the past year is just the beginning of the many benefits of the PPP initiative.

Business

Makinde Moves to Make Ibadan South-West Business Hub With N41bn Ibadan Airport Upgrade

Published

12 hours ago

September 19, 2024

Ugwoke Ogbodo

With a view to making Ibadan, the Oyo State capital the business hub of South West region, Governor Seyi Makinde has officially flagged off the N41bn upgrade of the Ibadan airport, renamed Samuel Ladoke Akintola Airport.

Speaking at the the ground-breaking ceremony for the project held at the airport premises in Ibadan, Makinde said his administration is focused on eradicating poverty in the state saying tye airport is an investment in the future.

Disclosing that the project is expected to be completed within a year, the governor noted that the project has been prioritised by his government since 2019, emphasising his commitment to transforming Ibadan into a regional business hub in the Yoruba region.

The governor stressed that the vision of his administration is fighting poverty and not the poor, admitting that there is hardship in the country of which the project, when completed, would partly contribute in tackling.

Governor Makinde posited that the airline initiative would enhance transportation and attract businesses, tourists, and investors to the region.

For the governor, the upgrade would facilitate modern touch to the airport, of which is essential for connecting the state to the global economy and drawing economic activities to Oyo.

According to him, the airport upgrade will cost N41 billion and that it is expected to enhance air travel operations and provide a reliable transportation network for both business and leisure travelers, positioning the state for economic growth and development.

Meanwhile, the Osun State Governor, Ademola Adeleke, who was the special guest at the event, described Makinde as one who actualises development projects.

He expressed willingness to collaborate with the state to explore mutually beneficial opportunities for both states.

Governor Adeleke reiterated his assurance to completing the 12 years Osun Airport project which his administration inherited, saying it would soon become a reality.

Business

Nigerians Lost ₦42 Billion To POS, Mobile Phone Frauds In 3 Month – Report

Published

22 hours ago

September 19, 2024

Bassey Marshall

The Financial Institutions Training Centre (FITC) has expressed concerns over the increasing cases of fraud in Nigeria.

This is as the institution reveals that it recorded a total of 11,532 fraud cases only in the second quarter of 2024.

In a latest report, FITC revealed that many of these frauds were linked to computers, mobile devices, and point-of-sale (POS) systems.

Also, the report revealed that these frauds did not start now.

It started in 2023 and now, like a deadly plague, it has crawled into the first quarter of 2024.

In the second quarter, the total value of fraud stood at ₦56.3 billion, a significant increase from the ₦34.8 billion reported in the first quarter of the year.

Despite efforts by financial institutions to recover the stolen funds, only ₦13.7 billion was salvaged leaving fraudsters smiling home with a whooping ₦42.6 billion.

When we talk about Mobile fraud, we mean fraud carried out via mobile apps and internet banking.

This fraud scheme accounted for 33.4% of the total cases in the report, making it the largest category.

Fraudsters who operate via POS did not disappoint.

They contributed 24.6% of the cases.

Web-based fraudsters were well represented, holding 16.9% of the total fraud incidents.

Meanwhile, via the report, FITC decried the increase in computer-based fraud as a growing concern.

The report reveals how bank branches counted their losses, with 95% of the total fraud value occurring at the branch level.

Of a truth, there have been many advancements and upgrades in technology.

Yet, fraudsters continue to excel.

We cannot help but blame this on the insiders who betrayed their organizations.

During the quarter in question, 49 employees were dismissed for their involvement in fraudulent activities.

The report also brought to light a new kind of fraud.

It is called fraud by magnitude.

Fraud by magnitude caused bank branches to lose approximately ₦54 billion.

That amount signifies a staggering 95.63% of the overall fraud amount.

Web-based fraud followed closely with losses of ₦1.2 billion (2%).

POS and mobile fraud each contributed around 1%, resulting in ₦651 million and ₦547 million losses, respectively.

On the bright side, there was a 31.8% decline in card-related fraud, but cheque and cash fraud surged significantly.

This rise in cash-related fraud reaffirms that criminals are also updating their skills as the days go by.

The big question is, what is the way forward?

For FITC the use of advanced technology, including artificial intelligence may be worth a shot.

Also, attention must be paid to proactive measures, such as bolstered security systems and continuous training of staff, as critical to reducing fraud.

As detailed in the report, fraudsters have stolen a total of ₦42.6 billion from commercial banks between April and June 2024.