The Daily Chase: Markets point to positive open; Exxon to buy carbon capturer

​I have this theory that all ideas for consumer companies sound dumb.

Here are five things you need to know: 

Markets: The S&P 500 is looking to build on 15-month highs this morning. The risk-on rally yesterday was sparked by cooler U.S. inflation. June was the first time in 29 months that the monthly core inflation print had been beneath two per cent on an annualized basis. The U.S. dollar hit a 15-month low. This lit a fire under a bunch of commodities and thus the TSX. What does this mean for rates? We’ll we got our answer from the Bank of Canada yesterday, but for the U.S. Federal Reserve the market is still pricing in a 90 per cent chance of a rate hike come July 26. What does change, however, is what happens next. The market priced in reduced expectations of more rate hikes later in the year.  As for the Bank of Canada, another rate hike later this year is getting about one in three odds right now.

Pepsi pops: Shares of Pepsi are rallying in the pre-market after the snack and drink maker beat earnings expectations and boosted its forecast. Sales and profit for Q2 grew faster than anticipated and the company says its bottom line will grow 12 per cent this year — which is also higher than expected. This is an example of an inflation story that is still working. Volumes for snacks and beverages, actually fell, but pricing was up 15 per cent. This is the sixth consecutive quarter of double-digit price increases. Some analysts are cautious though, noting that aspartame could be labeled “potentially carcinogenic” by the World Health Organization. This could hurt sales of its low calorie beverages according to Garret Nelson at CFRA.