Bull Market Nears Fourth Birthday as Delta and PepsiCo Flash Inflation Warnings

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Summary · why it matters

The current bull market is on track to become the seventh since the 1950s to complete at least four full years on October 12th, according to a new analysis by Truist Co-chief investment officer Keith Lerner. The 119% advance sits near the middle of the pack when measured against every bull market dating back to the 1950s, well below the 401% gain during the 2009 to 2020 cycle and the 582% gain from 1987 to 2000, while the historical average advance in Lerner's measurement period is 184%. Over the 10 prior bull markets, six lasted longer than four years. But early signs of trouble are emerging this earnings season as inflation hits corporate America: Delta said its fuel expense rose by nearly $2 billion year-over-year, a 69% increase, and guided well below consensus on fourth-quarter earnings because of higher fuel prices. PepsiCo cut its full-year profit outlook on Thursday, in part because of inflation hitting all areas of its business, from wheat and corn to the diesel in the trucks that deliver potato chips to supermarkets.

Impact on assets 4

Industrials▼
Delta Air Lines Inc
DAL
▼ NegativeSupplyrelevance

Delta's fuel expense rose nearly $2 billion year-over-year (69% increase), driving a weak Q4 earnings guide due to higher fuel prices.

Consumer Staples▼
PepsiCo Inc
PEP
▼ NegativeSupplyrelevance

PepsiCo cut its full-year profit outlook as inflation raised costs across wheat, corn, and diesel inputs.

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