What's rattling the markets? GE and Wells Fargo face shareholders; Coke vs. Pepsi

This newsletter is ending. Follow Quest on Markets Now Thanks for being a loyal reader of Quest's Profitable Moment. The Quest Profitable Moment weekly newsletter will be ending on Thursday, May 3. But don't worry, there are plenty of ways to keep up with CNNMoney and Richard Quest. Richard will be hosting Markets Now, a weekly digital show, live from the New York Stock Exchange, every Wednesday from 12:45 pm – 1 pm ET.  You can also sign up for our daily Markets Now newsletter and some other CNN newsletters we think you might like.  Profitable Moment  This is what's rattling stocks right now It is getting increasingly difficult to understand what's happening in this market when you try to figure out the trend and its likely future direction.    Oh, I'm not talking about soothsaying or reading the tea leaves to try and figure out which way the market is heading.    I'm talking about the underlying currents that are starting to carry investors and their money in a particular direction .  For instance, the 10-year US Treasury note has now gone above 3%. That in itself has certain implications for the rotation of money out of equities and into fixed income.    You also have earnings season. We've already had results from many companies, including Caterpillar, 3M, Coca-Cola and GE. Investors are even punishing stocks of companies with good results.    Take 3M, for example. In a market that's priced to perfection, if you're not bang on the nose, saying the future is looking bright … then you are going to feel a caning from investors.    And that's before we add in all the extras. Toss in worries over a trade war with China, geopolitics playing out in Syria, and issues with Iran. Add in domestic politics in the United States, with the Mueller investigation and where does that leave you?    It leaves both you and the market exhausted.  -Richard.Quest@cnn.com What's new... what's next By Matt Egan, Paul R. La Monica and Nathaniel Meyersohn of CNNMoney 1. Wells Fargo, GE blasted by shareholders Angry shareholders voiced extreme displeasure this week at two of America's biggest companies. At Wells Fargo's annual meeting, the bank was slammed for abusing customers and tarnishing its reputation. "This company has harmed and wounded millions," one activist shareholder told the bank. Workers, retirees and shareholders at GE's annual meeting bemoaned the downfall of the company they love. One investor called GE an "embarrassment." Both companies insisted better days are ahead and urged patience. Despite all of the obvious frustration, none of the shareholder proposals were adopted. 2. What rising commodity prices mean for your pocketbook Costs are rising for America's leading food, drink and household goods producers. Companies such as Coke, Hershey, General Mills and Procter & Gamble are all flagging higher prices for raw materials and freight. Truck driver shortages are raising shipping prices, while aluminum, wheat, cocoa and chemicals prices are up. Rising costs mean tighter profit margins for companies, and could force producers to pass them off to consumers. But goods producers will face pushback from retailers that need to keep prices on the shelves low to compete against Amazon and discount stores. That could blunt the hit to your wallet. 3. Pepsi vs. Coke: The cola wars are back! Pepsi is still facing "challenges" in its US soda business. But sales of tea, water and organic beverages are growing. The company is also doing well overseas. And its Frito-Lay snacks business continues to thrive. Pepsi CFO Hugh Johnston told CNNMoney the company expects big things from its new bubly brand of sparkling water and Gatorade Zero — a version that has no carbs. But Coca-Cola is also doing well. Diet Coke sales rose for the first time in more than seven years, thanks to new flavors. And Coke is also making a big bet on sparkling water with the purchase of the US rights for Mexico's Topo Chico.  4. Quick Takes: Facebook reversed its first-ever decline in daily active users despite the backlash from a massive data scandal. Facebook's stock soared Thursday. Still, billionaire investor Jeff Gundlach is shorting Facebook's stock. The yield on the 10-year Treasury note, which helps set rates for auto loans, mortgages and other lending, climbed to 3% on Tuesday for the first time in four years. The Treasury Department said Monday it will consider easing the sanctions on Rusal, the second-largest aluminum producer in the world, if Russian oligarch Oleg Deripaska divests. Aluminum stocks tanked. President Donald Trump says he's sending some of his top economic advisers to China "in a few days" for talks on the simmering trade tensions between the world's two largest economies. Snapchat's stock plunged Wednesday after it changed its app again — only months after a previous redesign that ticked off users. And it's bringing Spectacles back too. 5. What's next: GDP watch: On Friday, the United States will provide its first glimpse at how fast the economy grew in the first quarter. Economists forecast the economy grew at a rate of 2%. That's not bad, but it's not nearly as strong as earlier predictions just after Republicans passed the tax cut bill. The Eurozone will report its GDP growth on Wednesday, May 2. Apple earnings: Apple will report earnings on Tuesday, and Wall Street investors will be closely watching the number of iPhones the company sold last quarter. A key Apple chip supplier — Taiwan Semiconductor — warned of "mobile softness" and "continued weak demand" when it reported earnings this week. Make this newsletter better. Please send us your feedback to CNNMoneyFeedback@turner.com Share Tweet Forward Sign up for CNN Money's morning markets newsletter: Before the Bell Sign up for CNN Money's closing markets newsletter: Markets Now Copyright © 2018 Cable News Network, LP, LLLP. A Time Warner Company. All Rights Reserved., All rights reserved. You're receiving this newsletter because you opted in at cnn.com or cnnmoney.com. 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