:max_bytes(150000):strip_icc()/GettyImages-2038740775-d0cabcc739fc43f9b31f10dc96de666b.jpg "Constellation Brands, Block, PepsiCo, and More")
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Key Takeaways
- U.S. equities dropped at midday after a federal appeals court ruled against President Donald Trump’s tariff policy, putting the future of the duties in question.
- Constellation Brands cut its outlook as beer on falling beer demand and the effect of tariffs.
- Activist investor Elliott Investment Management took a large stake in PepsiCo, and presented the board with ideas on lifting the share price.
U.S. equities declined to start the month on uncertainty about the future of Trump administration tariffs. The S&P 500 and Nasdaq lost nearly 1%, and the Dow Jones Industrial Average slipped as well.
Constellation Brands (STZ) shares dipped when the company behind the Modelo and Corona brands slashed its guidance on sliding demand for beer and the impact of tariffs.
Shares of Kraft Heinz (KHC) dropped when the maker of Heinz Ketchup and Kraft Mac & Cheese announced it was splitting the food company in two.
Block (XYZ) shares slumped on a downgrade from BNP Paribas, which said the provider of electronic payment services had had slowing growth even as the stock price has climbed.
PepsiCo (PEP) shares gained after activist investor Elliott Investment Management said it had taken a $4 billion stake in the soft drink and snack giant, and called on the board to take steps to boost the stock price.
Shares of Biogen (BIIB) advanced following Food and Drug Administration (FDA) approval of the drugmaker’s once-a-week injectable Alzheimer’s disease treatment Leqembi, which it makes together with Japan’s Eisai.
Corning (GLW) shares rose on an upgrade from UBS, which cited demand for the fiber optic maker’s artificial intelligence products.
Oil futures jumped. Gold prices traded at record highs. The yield on the 10-year Treasury note surged. The U.S. dollar was up on the euro, pound, and yen. Most major cryptocurrencies traded higher.
