The European Union struck a 1.8 billion-euro spending package on Tuesday -- a deal amounting to about $2.08 trillion -- to prevent further economic carnage on the continent in the wake of the pandemic.
The agreement was greeted favorably by Europe's major stock market indices, with the FTSE 100, Euronext 100 and DAX all closing higher on the day. The deal signaled a more firmly united EU, with some of its most troubled southern member nations receiving about 750 billion euros ($865 billion) to help them rebuild.
Italy and Spain, two prominent members of the bloc but also some of the most fiscally stressed countries in the EU, will receive a significant amount of payouts among the bloc's 27 member states.
And, not to be outdone, the U.S. is also gearing up for a second round of post-pandemic stimulus. The Dow Jones Industrial Average rose 0.6%, or 159 points, to finish at 26,840 on Tuesday.
Uncle Sam, could you spare $1 trillion? As the EU struck its historic agreement, the U.S. Congress itself is in the early stages of crafting another spending bill intended to prevent more severe economic fallout from the pandemic.
While GOP leadership reportedly wants to draw a line in the sand and cap the bill at $1 trillion, an even starker line of debate between Democrats and Republicans looks to be the $600 per week unemployment benefit, which is set to expire at the close of July. Democrats largely prefer to extend those benefits, while the GOP aims to focus more on hiring and back-to-work incentives, as well as liability protection for businesses.
The bill, whatever its details, looks unlikely to come until August.
Coca-Cola needs some pep in its step. One of the most iconic brands and stereotypically American large businesses around, beverage giant Coca-Cola (ticker: KO) reported plunging second-quarter sales on Tuesday, with revenue down 28% year over year.
Although business picked up in May and June, and while the company emphasized a recovery in Western Europe and Asia, the worldwide lockdowns and stay-at-home orders hit Coca-Cola hard last quarter. A huge chunk of revenue comes from restaurants, bars and entertainment venues -- not exactly a red-hot segment of the economy these days.
KO stock still managed to tick up more than 2% as it barely beat earnings expectations and missed Wall Street's revenue estimates.
This quarter should highlight for the individual investor the stark difference that actually exists between Coca-Cola and PepsiCo ( PEP) as businesses: While Coca-Cola saw sales plunge, Pepsi revenue was essentially flat last quarter, as its vast snacks business saw an uptick that offset falling beverage sales.