Yahoo Finance's Emily McCormick joins The First Trade with Alexis Christoforous to discuss last week's jobless claims, PepsiCo earnings and Bed Bath & Beyond earnings.
ALEXIS CHRISTOFOROUS: Let's begin with those jobless claims, Emily. What else can you tell us?
EMILY MCCORMICK: Well, Alexis, taking a look at this jobless claims report, we did have a better-than-expected print on those seasonally adjusted new weekly unemployment claims. Those came in at 837,000 last week for a print better than the 850,000 expected and upwardly revised 873,000 during the prior week.
Now this marked the fifth straight week that new jobless claims came in below the 1 million mark. We also saw a decline in the seasonally unadjusted claims figure to reaffirm that improvement. Now that said, we're still well above pre-pandemic levels when it comes to new claims since those have been coming in at a rate of about 200,000 per week as recently as February this year.
Now taking a look here by region, I want to point out that the majority of states did report improvements in unadjusted new claims last week. That was led by Florida with a decline of over 9,600 claims to about 29,000. Now Texas and Georgia also reported sizable declines in new claims.
Now one quirk from this jobless claims report that I want to highlight is a technical note that the Labor Department included, which is that California has announced a two-week pause in its processing of initial claims for unemployment insurance benefits. Now if you take a look at this report, we did see those claims for California apparently holding steady at an unadjusted basis at 226,000. But again, that's because California is pausing its processing of these new claims. So something to watch in the reports to come, if we see some give back there.
The last thing I want to point out here is that we did see continuing unemployment claims actually fall below the 12 million mark for the first time since April in this week's report. We saw those come in at 11.77 million, better than the 12.2 million that had been expected, Alexis.
BRIAN SOZZI: And, Emily, what's latest on Pepsi? Earnings out this morning, so far so good.
EMILY MCCORMICK: Absolutely, Brian. Taking a look at those PepsiCo third-quarter earnings, we saw a net revenue of 18.1 billion, better than the 17.2 billion expected. Quarter earnings per share up $1.66, ahead of estimates by $0.17. Now taking a look at those results, those are driven by Quaker Foods North America and Frito-Lay North America, with both of those units' organic sales up 6%. So still seeing that pantry stocking among consumers during the pandemic carrying over into this third quarter.
I also want to note that PepsiCo's North American beverage unit returned to growth on the top line with organic sales up 3%. That followed a sales drop in the second quarter when a lack of live events, restaurant dining, and a drop in convenience store purchases had hit that beverage revenue.
The company also gave guidance for the full-year earnings, that top consensus estimates. And the company does see full-year core earnings of $5.50 per share, better than the 5.36 consensus had been looking for, Brian and Alexis.
ALEXIS CHRISTOFOROUS: All right, Emily, and I want to mention we're going to dig deeper into that PepsiCo report with the company's CFO, Hugh Johnston. He's going to be joining us here on "The First Trade" at 9:40 Eastern. Also, before we let you go, Bed Bath & Beyond is reporting a nice profit report here-- first same-store sales increase in nearly four years. And I guess it looks like e-commerce driving things higher there.
EMILY MCCORMICK: Absolutely, Alexis. E-commerce, really the strong point here. We saw digital channel growth of 89%, which more than offset an about 12% decline in comparable store sales at their physical locations. Now that was good enough to bring their comparable sales up 6% in the quarter. Consensus estimates had been looking for a 1.3% decline. So that surprise upside we saw in that top-line growth really helping propel shares here in premarket trading. We did see those higher by as much as 21%, Alexis.