Midday Fly By: Delta beats, PepsiCo names new CFO

The major averages were broadly lower near noon, giving back some of yesterday’s gains as the U.S. government shutdown enters its ninth day. Investors are awaiting remarks from Federal Reserve Chair Jerome Powell, with many seeing his comments as a pivotal guidepost for the path of interest rates this year. Of note, Federal Reserve Bank of New York president John Williams indicated he would back another rate cut this year in a New York Times interview.

Looking to commodities, gold prices are pulling back a bit after reaching new highs yesterday, though the “safe haven” asset remains above the $4,000 mark. Oil prices are dipping as well following yesterday’s spike as an Israel–Hamas ceasefire deal reduced some of the risk premium previously embedded in energy markets.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Delta (DAL) reported upbeat Q3 earnings, provided a better-than-expected Q4 outlook, and reiterated its guidance for FY25
• PepsiCo (PEP) reported better-than-expected Q3 results and named Walmart’s (WMT) Steve Schmitt CFO
• Apple (AAPL) and Meta (META) are close to settling two antitrust cases with the European Commission, FT reports
• Akero Therapeutics (AKRO) agreed to be acquired by Novo Nordisk (NVO) or up to $5.2B in cash
• Microsoft (MSFT) is partnering with Harvard Medical School for a Copilot update that will draw on information from the university’s health research, WSJ reports

2. WALL STREET CALLS:

• DraftKings (DKNG) upgraded at Berenberg following recent selloff
• Tractor Supply (TSCO) upgraded at Citi, here’s why
• Roblox (RBLX) upgraded to Neutral at MoffettNathanson on success with viral experiences
• Jefferies joins BofA in downgrading Freshpet (FRPT)
• Baird starts Oracle (ORCL) at Outperform on AI infrastructure exposure

3. AROUND THE WEB:

• New York City has filed a lawsuit against Facebook (META), Google (GOOGL), Snapchat (SNAP), TikTok, and other online platforms, accusing them of addicting children to social media, Reuters reports
• Warner Bros. Pictures (WBD) co-heads Michael De Luca and Pamela Abdy are being renewed for an unspecified amount of time, Variety reports
• Civitas Resources (CIVI) is weighing a merger with SM Energy (SM), a deal that would be structured as a merger of equals with no premium, according to people familiar with the matter, Bloomberg says
• At an investor event in New York, The Metals Co. (TMC) expressed renewed optimism about beginning seabed mining in the Pacific, citing explicit backing from the Trump administration, Information says
• Netflix (NFLX) is making its video games available for play on TVs, offering games such as Boggle Party, Pictionary: Game Night, Tetris Time Warp and Lego Party, Bloomberg reports

4. MOVERS:

• Serve Robotics (SERV) gains after announcing a multi-year strategic partnership with DoorDash (DASH)
• Tilray (TLRY) increases in New York after reporting Q1 results and providing guidance for FY26
• Oklo (OKLO) higher after Canaccord initiated coverage of the stock with a Buy rating
• Osisko Development (ODV) lower in New York after announcing a C$30M bought deal offering
• Helen of Troy (HELE) falls in New York after reporting Q2 results and providing guidance for FY26 and Q3

5. EARNINGS/GUIDANCE:

• PepsiCo (PEP) reported Q3 results, with EPS and revenue beating consensus
• Ferrari (RACE) raised its guidance for FY25 and provided guidance for FY30
• InMode (INMD) provided guidance for Q3 and FY25
• Neogen (NEOG) reported Q1 results and backed its guidance for FY26
• AZZ Inc. (AZZ) reported downbeat Q2 results

INDEXES:

Near midday, the Dow was down 0.33%, or 155.29, to 46,446.49, the Nasdaq was down 0.27%, or 62.76, to 22,981.13, and the S&P 500 was down 0.27%, or 17.94, to 6,735.78.