The government’s own nonfarm payrolls report is due out Friday. The Institute for Supply Management reported its non-manufacturing activity index hit 64.1 last month from 60.1 in June, the highest reading in its history. Contributing to the market sentiment on Wednesday, Federal Reserve Vice Chair Richard Clarida commented that the economy is on track to meet the employment and inflation goals the Federal Reserve has set for raising interest rates.
While food stocks may show gains from foodservice recovery and solid demand, high costs are a woe for Kellogg (K), Beyond Meat (BYND), Post Holdings (POST), Celsius Holdings (CELH) and Corteva (CTVA).
Beyond Meat's (BYND) second-quarter performance is likely to have gained from strong retail sales and recovery in foodservice demand. Rising transportation and warehouse costs are a concern.