5 Things to Know Before the Stock Market Opens

PepsiCo (PEP) earnings come in below estimates and it cuts its full-year guidance; Honeywell (HON) will spin off its Advanced Materials division; a judge rules that Alphabet’s (GOOGL) Google must offer alternatives to its Play Store; Nvidia (NVDA) shares are rising after it overtakes Microsoft (MSFT) as the second-largest company by market capitalization; and Amazon (AMZN) Prime Big Deal Days kicks off as retailers look to grab consumers ahead of the holiday shopping season. Here’s what investors need to know today.

1. PepsiCo Stock Slips After Weaker-Than-Expected Results, Outlook Cut

PepsiCo (PEP) shares are slipping about 1% in premarket trading after the soda giant reported third-quarter revenue of $23.32 billion and earnings per share (EPS) of $2.13 that came in below expectations. “Given our performance to date and our outlook for the fourth quarter, we now expect to deliver a low-single-digit increase in organic revenue (previously approximately 4 percent organic revenue growth),” PepsiCo Chief Executive Officer (CEO) Ramon Laguarta said. PepsiCo’s report comes after it warned about a weaker consumer in its prior-quarter report.

2. Honeywell to Spin Off Advance Materials Business

Honeywell International (HON) will spin off its Advanced Materials division into a separate publicly traded company, the conglomerate said. According to The Wall Street Journal, which earlier reported the plan, the division could be worth more than $10 billion as a separately traded public company. Shares of Honeywell were roughly 2% higher in premarket trading.

3. Judge Rules Google Must Offer Alternatives to Play Store

A U.S. judge has issued a permanent injunction that will force Alphabet’s (GOOGL) Google to offer alternatives to its Google Play Store on Android phones. The ruling comes from video game maker Epic Games’ successful antitrust suit, which found that Google maintained illegal monopoly power in operating its app store. After declining about 2.5% Monday, Alphabet shares are up less than 1% in premarket trading.

4. Nvidia Stock Rises Further After Becoming No. 2 Company by Market Cap

Shares of chipmaker Nvidia (NVDA) are gaining about 2% in premarket trading, a day after it overtook Microsoft (MSFT) in market capitalization to become the second-largest company in the world behind Apple (AAPL).  Nvidia shares added 2% Monday, lifting the chipmaker’s market cap to $3.13 trillion, as its partner Super Micro Computer (SMCI) reported strong shipments of its GPU processors used in artificial intelligence (AI) applications.

5. Amazon Kicks Off Prime Big Deal Days

Amazon (AMZN) will hold its Prime Big Deal Days today and tomorrow as retailers attempt to draw in consumers looking to get an early start on holiday shopping. Concurrently, Walmart (WMT) is running its Holiday Deals event from today through Sunday, while Target (TGT) is holding its second Circle Week of the year through Saturday. Shares of Amazon are higher by less than 1% in premarket trading, while Walmart and Target are little changed.

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