What's moving markets today: April 17, 2019
Chip maker Qualcomm (QCOM) closed 23% higher on Tuesday, after it announced it reached a settlement and license agreement with Apple (AAPL) over patents.
The stock extended its gains in early trading: It's up 15%.
The two companies will still work together. Apple and Qualcomm announced a new six-year license contract, with the option to add two more years. It also announced a multi-year chipset supply agreement.
Intel (INTC) shares are up 4% in premarket trading after it announced it will stop making 5G chips for smartphones. Apple used Intel chips in their iPhone XS line, but faced a shaky future with the company because of today's Qualcomm deal.
Shares of PepsiCo (PEP) rose about 2% before trading hours on Wednesday after the company reported earnings that beat Wall Street's expectations.
The beverage company Frito-Lay business was particularly successful in North America. Organic sales of Frito-Lay, which includes Cheetos, Lay's, Doritos, Sun Chips, Fritos and more, grew 6% in the most recent quarter, PepsiCo said. The company's North American beverage business also performed well, with 2.5% growth in organic sales.
Ramon Laguarta, PepsiCo CEO since October, said he is "pleased" with the results, noting that "Frito-Lay North America ... delivered particularly strong operating performance."
Overall, net revenue grew 2.6% to $12.9 billion in the first quarter, a result that Laguarta said was negatively affected by foreign exchange rates. He added that organic growth for the quarter was over 5%.
China's economy grew slightly more than expected in the first quarter of 2019, official data showed Wednesday.
It expanded by 6.4% compared to a year ago, beating economists' forecasts of 6.3%.
The big picture is that policy stimulus is clearly working and should help to shore up China's economy in the coming quarters," said Julian Evans-Pritchard, Senior China Economist at Capital Economics.