Some Midday Observations

Avatar photo Doug Kass on September 2, 2026

* Market breadth has improved.

* The Russell is crowing relative to the senior averages.

* Bonds can’t rally.

* Financials can’t hold their gains.

* Many large-cap tech stocks continue to show signs of rolling over. 

* It is all $NVDA, all the time.

* On the other hand, consumer non-durables ($KO, $PEP, $PG, $KMB, etc.) are suddenly rallying today after days of weakness.

* The business media is preoccupied with silly data on September weakness. (Another CNBC Blather Survey — there have been nine discussions of this thus far today.)

Bottom Line

A sloppy and trendless tape.

Position: Long PG (VS), PEP (VS), KO (VS), KMB (VS)

Cutting Back on Staples

Avatar photo Doug Kass on August 24, 2026

I am further reducing consumer staples exposure on the strong move today and over the last week — $PEP, $PG, $KMB and $KO.

These stocks have been reasonably good performers and stalwarts in a backdrop of volatility.

The recent advance has reduced the reward vs. risk.

Position: Long PEP (VS), PG (VS), KMB (VS), KO (VS)

A Low Drama Day

Avatar photo Doug Kass on August 21, 2026

* TGIF!

With three hours left in the trading week, markets seem to meandering (though they have recovered about half of yesterday’s decline.

Breadth is uninspiring and so is the volume low.

The indices full of sound and fury — gapped higher, retreated, advanced and are stable now.

The strength is a bit surprising considering that yields are up for the second day in a row — and back to where the Treasury announced their intentions.

The algos seem quiet with some strength in Mag 7 after an awful day yesterday and memory/chips exhibiting some further losses. 

Financials were stronger in the morning and have given up most of the gains and then some.

Consumer staples-are showing strength (with $PG and $PEP leading the way) — somewhat surprising considering the better market tone. $KO looks about to make a 52-week high.

Cannabis is trying to break out of a trading range… to the upside.

I see little in the way of extremes (from a sector or stock standpoint) or trading opportunities.

Doing mostly research and anticipating the end of a long week. 

Most importantly, Ollie the doxie (I was at vet two more times in the last 24 hours) is mending and the family health issue has passed.

Position: Long PG (S), PEP (VS), KO (S)

A Real KO!

Avatar photo Doug Kass on July 28, 2026

Coca-Cola ($KO) beat earnings per share expectations by $0.04, beat revenue expectations and raised its fiscal 2026 organic revenue growth and comparable EPS growth guidance.

Not surprisingly, I expect a positive market response to the release, which should have a collaterol benefit to PepsiCo ($PEP).

Here is the complete release.  Coca-Cola Reports Second Quarter 2026 Results and Raises Full Year Guidance :: The Coca-Cola Company (KO)

Positions: KO VS PEP S