The Daily Breakdown takes a closer look at PepsiCo stock as shares hit a one-year high. Warner Bros renews its exploration options.
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What’s Happening?
Thanks to Presidents’ Day, we’re heading into a holiday-shortened week. After stumbling into Friday’s rally, markets bounced but still finished lower for the week. The S&P 500 and Nasdaq 100 each fell 1.4%. Bitcoin slipped about 2%, while Ethereum dropped 5.9%.
Key Events
Earnings season is quieter, but several notable reports are still ahead. Palo Alto Networks is up on Tuesday, while Wednesday brings Moody’s, Booking Holdings, DoorDash, and Carvana. Walmart, Deere, and Etsy report Thursday, among others. Several of these names — including MCO, PANW, and BKNG — are well off their highs, so results and guidance could be pivotal. On the macro calendar, GDP and the PCE report — the Fed’s preferred inflation gauge — are due at 8:30 a.m. ET.
Bitcoin
Bitcoin remains below the $72K to $74K zone, an area that has been key on the chart. It was resistance after the early-2024 peak, then flipped to support during the early-2025 tariff selloff. With BTC trying to avoid a fifth straight weekly decline, this area remains in the spotlight.
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The Setup — PepsiCo
PepsiCo has struggled to generate upside momentum, but it appears to be finding its footing as Coca-Cola and other consumer staples have been in demand this year. Recently, PEP reclaimed its 200-week moving average, a constructive technical development. If the stock can hold above the $155 to $160 zone, bullish momentum may continue. A break below that area, however, could invite renewed selling pressure.
Options
As of February 13th, the options with the highest open interest for PEP stock — meaning the contracts with the largest open positions in the options market — were the February 20th $150 calls, followed by the June $170 calls.
Investors who are bullish could consider calls or call spreads as one way to speculate on further upside, while bearish investors could consider puts or put spreads to speculate on a further move to the downside. For options traders, it may be advantageous to have adequate time until the option’s expiration.
To learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
XLU
The breakout in utilities remains strong, with the XLU ETF jumping 2.8% on Friday, its seventh consecutive day of gains. The ETF is now up 9% so far on the year, while the S&P 500 is roughly flat on the year. Check out the charts for XLU.
WBD
Warner Bros. Discovery is in focus this morning after reports that it has reopened deal talks involving Paramount, aided by a temporary waiver from Netflix. The chatter is centered on whether Paramount’s sweetened all-cash bid can top Netflix’s more complex proposal, with regulatory scrutiny still a key wild card.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.