Shares of PepsiCo Inc. slumped premarket Friday, after the beverage and snack giant reported a surprise decline in revenue, marking the first miss of expectations in at least five years amid weakness in the North America businesses. The company also reported a quarterly profit that beat expectations and announced a 7% increase in the annual dividend, but trimmed its full-year sales-growth outlook. “Consumers are likely to remain watchful with their budgets and choiceful with their purchases,” the company said in the prepared post-earnings call remarks, posted on its website. The stock PEP sank 3% in morning trading. That puts it on track for the biggest one-day loss since it fell 5.2% on Oct. 5, 2023, and to suffer the worst one-day post-earnings performance in at least five years, based on available data provided by FactSet. Net income jumped to $1.3 billion, or 94 cents a share, from $518 million, or 37 cents a share, in the same period a year ago. Excluding nonrecurring items, core earnings per share of $1.78 beat the FactSet consensus of $1.72.

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The Switzerland market turned weak after a slightly positive start Friday morning, and despite briefly emerging above the flat line around late morning, failed to find support and eventually ended the day's session on a negative note. The benchmark SMI ended with a loss of 47.27 points or 0.42% at 11,091.58. The index, which edged up to 11,161.06 in early trades, touched a low of 11,064.90 in the final hour. Nestle ended nearly 3% down. Givaudan and Holcim settled lower by 1.48% and 1.22%, respectively. Alcon climbed 1.85%. Sonova and Logitech International ended higher by 1.14% and 1.05%, respectively. Richemont, UBS Group and Novartis posted modest gains. In the Mid Price Index, Adecco, BKW, SIG Combibloc and Lindt & Spruengli lost 2.4 to 2.8%. Ems Chemie Holding, Barry Callebaut, Clariant, Swiss Prime Site, Flughafen Zurich and Sandoz ended lower by 1.2 to 2%. ams OSRAM AG soared 12.6% after reporting Q4 sales in line with market expectations. Straumann Holding and VAT Group gained 1.9% and 1.5%, respectively. Swatch Group, Schindler Ps and Schindler Holding gained 0.5 to 0.7%.

European stocks closed lower on Friday with investors digesting German inflation data, and earnings updates. Uncertainty about interest rate cuts by central banks, and rising geopolitical tensions weighed on sentiment. Bank of England policymaker Jonathan Haskel expressed satisfaction with signs of easing inflation in Britain but stressed the need for more evidence of stability. The pan European Stoxx 600 edged down 0.09%. The U.K.'s FTSE 100, Germany's DAX and France's CAC 40 ended down 0.3%, 0.22% and 0.24%, respectively. Switzerland's SMI settled lower by 0.42%. Among other markets in Europe, Austria, Czech Republic, Finland, Greece, Poland, Russia, Spain and Sweden ended weak. Belgium, Denmark, Iceland, Netherlands, Norway, Portugal and Turkiye closed higher. In the UK market, Legal & General ended 3.3% following a rating downgrade. Glencore also ended more than 3% down. Fresnillo, British American Tobacco, Land Securities, Burberry Group, Anglo American Plc, Ocado Group and Prudential ended lower by 2 to 3%. Natwest Group, Segro, HSBC Holdings, Aviva, Auto Trader Group, Haleon, Airtel Africa and Antofagasta also ended notably lower. In the German market, Siemens, Vonovia, Brenntag, HeidelbergCement and Beiersdorf lost 1.9 to 2.9%. Porsche, RWE, BASF, Continental and Hannover Rueck also closed weak. Infineon climbed about 1.7%. Commerzbank and Merck gained 1.3% and 1.1%, respectively. Covestro and Sartorius posted moderate gains. In Paris, L'Oreal tanked nearly 8% after reporting lower-than-expected fourth-quarter sales.

With technology stocks leading the charge, stocks moved mostly higher over the course of the trading session on Friday. The major averages extended a recent upward trend, with the S&P 500 closing above 5,000 for the first time ever. The tech-heavy Nasdaq posted a standout gain, surging 196.95 points or 1.3 percent to 15,990.66 and continuing to close in the on the record highs set in November 2021. The S&P 500 also climbed 28.70 points or 0.6 percent to 5,026.61, while the narrower Dow bucked the uptrend amid a pullback by Disney (DIS) and edged down 54.64 points or 0.1 percent to 38,671.69. For the week, the Nasdaq shot up by 2.3 percent and the S&P 500 jumped by 1.4 percent. The Dow inched slightly higher. The strength on Wall Street partly reflected a positive reaction to data from the Labor Department showing a modest downward revision to consumer price growth in December. The revised data showed the consumer price index rose by 0.2 percent in December compared to the previously reported 0.3 percent increase. Outside of the tech sector, brokerage and retail stocks saw notable strength, while energy stocks moved to the downside despite a continued increase by the price of crude oil. Among individual stocks, Bitcoin miner CleanSpark (CLSK) skyrocketed by 32.9 percent after reporting an unexpected fiscal first quarter profit on better than expected revenues.

The stock markets in East Asia and Australia are showing a slightly negative trend at the start of the new trading week. However, there is no trading on most trading centres due to public holidays. The stock exchange in Shanghai will be closed for the whole week due to the Chinese New Year, while trading in Hong Kong will only resume on Wednesday. The stock markets in Seoul and Singapore will also be closed at the beginning of the week for the same reason. In Tokyo, trading is suspended due to the "Day of the Founding of the Empire".

In the U.S. bond market, treasuries moved modestly lower over the session after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.7 basis points to a nearly two-month closing high of 4.187 percent.

BoA raises ASML target to EUR 1,064 (904) – Buy

UBS lowers Delivery Hero target to EUR 38 (45) – Buy

UBS raises Unilever target to 3,430 (3,400) p – Sell

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