The Coca-Cola Company

Coca-Cola and PepsiCo delivered contrasting second-quarter 2026 results, with Coca-Cola raising full-year guidance on 5% global unit case volume growth while PepsiCo reaffirmed guidance and conceded its Q2 volume fell short. Coca-Cola shares are up 33.35% year to date versus PepsiCo's 2.76% gain. PepsiCo posted $24.18 billion in revenue, up 6.4%, but its PFNA foods segment fell 2% and CEO Ramon Laguarta blamed a weaker consumer driven mainly by gas prices. Coca-Cola's revenue reached $13.38 billion, with Coca-Cola Zero Sugar volume up 16%, and new CEO Henrique Braun highlighted the FIFA World Cup platform spanning more than 180 markets. Coca-Cola's operating margin of 34.9% is more than double PepsiCo's 14.4%, though PepsiCo offers a 3.87% dividend yield backed by a 54th consecutive dividend increase.

The National Restaurant Association's 2026 Restaurant Beverage Trends report finds beverages are becoming a major growth driver for restaurants, with 87% of fullservice operators and 80% of limited-service operators saying beverages can drive traffic. The report, sponsored by The Coca-Cola Company, shows 72% of consumers see restaurants as a good place to discover new beverages, and 37% make beverage-only purchases at least weekly, including 50% of Gen Z adults and 47% of millennials. It also identifies packaging innovation as a key opportunity, with 83% of delivery customers saying they would order beverages more often if packaging improved. Operators are prioritizing smarter menus, with limited-service operators focusing on coffees, teas, smoothies, and wellness beverages, while fullservice operators expand cocktails, alcohol-free options, beer, and wine.

Coca-Cola shares have outperformed every member of the Magnificent 7 tech complex this year, trading at a record high and up 32% year to date under new CEO Henrique Braun. The beverage giant posted second quarter net revenue of $13.4 billion, up 7% year-over-year, with earnings per share rising 16% to $1.03, driven by a 6% organic revenue increase and 5% gain in global unit case volume. By comparison, Meta is down 15% and Tesla is off 22% in 2026, making Tesla the worst performing Magnificent 7 member. Coca-Cola also raised its full-year earnings guidance, citing pricing power, operational efficiencies, and favorable currency tailwinds, while investors have bid up shares as a defensive haven amid market volatility.

Coca-Cola has emerged as the strongest growth name among the largest consumer-staples stocks, according to Seeking Alpha's latest quantitative rankings. The beverage giant earned a B growth grade, the best among the sector's 10 largest holdings, ahead of Monster Beverage and Costco at B-, Philip Morris at C+, and Mondelez at C. PepsiCo was graded D+, while Altria, Colgate-Palmolive, and Procter & Gamble each received a D. Coca-Cola's lead is backed by improving fundamentals, including second-quarter net revenue up 7% to $13.4 billion, organic revenue up 6%, global unit-case volume up 5%, and comparable EPS up 11% to $0.97. Management also raised its full-year outlook to roughly 5% organic revenue growth and comparable EPS growth of 9% to 10% versus 2025, with free cash flow expected to reach approximately $12.4 billion.

Coca-Cola is adapting its beverage portfolio as consumer preferences evolve, reducing the risk that changing tastes could materially undermine its core business. Trademark Coca-Cola volume grew 5% in the second quarter of 2026, its strongest growth in 17 years excluding the COVID recovery period, while Powerade volume increased 8% globally. Fairlife grew 18% in the quarter as the company ramped up capacity at its Webster facility, and Coca-Cola Zero Zero is being expanded globally following encouraging initial performance in Europe. PepsiCo is expanding functional, zero-sugar and permissible offerings, though North America beverage volumes remained subdued, while Monster Beverage's zero-sugar portfolio remained a significant contributor to U.S. growth with the Ultra family growing 19% in the second quarter. Coca-Cola shares have rallied 11.8% in the past three months and trade at a forward price-to-earnings ratio of 26.47X, above the industry's 20.05X.

Monster Beverage's core Monster Energy Drinks segment posted net sales of $2.36 billion in the second quarter of 2026, up 21.6% year over year from $1.94 billion. Overall company net sales advanced 20.2% to $2.54 billion, while operating income increased 17.2% to $740.4 million and earnings per share rose 19% to $0.59. The company cited resilient category demand, product innovation, and expanding global distribution, along with deeper collaboration with Coca-Cola bottling partners, as key drivers. Management highlighted the zero-sugar Ultra family and Juice Monster as important growth contributors, while noting higher aluminum, freight, fuel, and marketing costs as ongoing challenges.

Coca-Cola's second-quarter 2026 results show a more balanced growth engine, with organic revenues up 6% and unit case volume up 5%. Price/mix contributed 2% to growth, consisting of three points of pricing offset by one point of unfavorable mix related to investment timing in Asia Pacific. North America volume grew 3%, while Trademark Coca-Cola volume rose 5% globally, its strongest growth in 17 years excluding the COVID recovery. Management expects volume and price/mix to move more in tandem during 2026, balancing affordability and premiumization through packaging formats and entry price points.

Foods & Inns Ltd reported a slowdown in export dispatch due to vessel non-availability and significant increases in ocean freight, leading to delayed call-ups and a backlog of 1,800 million tons of finished goods. Average realization declined by 18.5% year-on-year due to lower raw material (mango) prices, impacting top-line value growth despite volume growth. The company received a higher order from its top customer, Coca-Cola, for the Maza brand, which celebrated its 50th anniversary. The frozen food segment continues to show strong growth, with a 20% growth in Q1 and a 30% CAGR over the last two years, and the company is expanding capacity to meet demand. The pectin segment has started commercial production, with samples sent to big brands and consumer testing underway, expected to yield opportunities in the second half of the year.

Five Dividend Aristocrats posted better-than-expected second-quarter earnings and raised full-year guidance, according to 24/7 Wall St. American States Water crushed Q2 estimates and rewarded shareholders with an 8% dividend hike, extending its 70-year streak of consecutive increases. Coca-Cola reported $13.37 billion in revenue and $0.97 in comparable EPS, beating consensus and raising its full-year earnings growth forecast to 8% to 9%. Dover's adjusted EPS climbed 12% to $2.74, and the company raised full-year guidance for both organic revenue and adjusted earnings. Federal Realty Investment Trust posted a 96% occupancy rate and extended its record 59-year streak of annual dividend increases. Stanley Black & Decker delivered a massive earnings beat, reporting $1.57 adjusted EPS versus the $1.21 consensus.

The Trump administration is weighing a plan to index capital gains for inflation, which would reduce but not eliminate the tax bill on Warren Buffett's long-held stock positions. National Economic Council Director Kevin Hassett confirmed the White House is developing capital gains proposals ahead of November's midterms, with inflation-indexed cost basis at the center. For Berkshire Hathaway's Coca-Cola stake, built between 1988 and 1994 with a split-adjusted cost basis near $3.25 a share, cumulative inflation of roughly 2.7 times would push the adjusted basis to around $8 to $9, but with Coca-Cola trading in the high $80s, the adjustment shaves only a few dollars off the taxable gain per share. The Cruz-Scott version of indexing was estimated to reduce federal revenue by about $200 billion, while the Committee for a Responsible Federal Budget warned that executive action alone could add $170 billion to $950 billion to the national debt by 2035. Investors whose holdings merely tracked inflation would benefit most from indexing, while genuine long-term compounders still owe tax on decades of real outperformance.

Coca-Cola raised its full-year 2026 guidance following a second-quarter earnings beat, while PepsiCo maintained its more modest outlook amid ongoing North American weakness. Coca-Cola reported net revenue of $13.37 billion, up 7% year over year and ahead of estimates of $13.05 billion, with adjusted earnings per share of $0.97 beating the $0.92 consensus. The company lifted its organic revenue growth forecast to approximately 5% from a prior range of 4% to 5%, and now expects adjusted EPS growth of 9% to 10%, up from 8% to 9%. PepsiCo posted net revenue of roughly $24.18 billion, topping expectations of $23.86 billion, and adjusted EPS of $2.20, edging estimates of $2.19, but North American beverage volumes fell 4% and snack volumes were flat. PepsiCo reiterated its fiscal 2026 outlook for organic revenue growth of 2% to 4% and adjusted EPS growth of approximately 5% to 7%, while Coca-Cola's premium valuation and stronger growth trajectory have widened the divergence between the two consumer staples stocks.

Apple, Microsoft, and Coca-Cola each reported quarterly results that reinforced their durable competitive advantages. Apple's Services revenue reached $30.98 billion and its active device base exceeded 2.5 billion, while Microsoft's AI business surpassed a $37 billion annualized run rate, up 123% year-over-year. Coca-Cola extended its dividend streak to over 63 years and raised 2026 EPS growth guidance to 8-9% after a 12% revenue increase. All three companies face distinct risks, including Apple's premium valuation, Microsoft's surging capital expenditures, and Coca-Cola's impairment and divestiture headwinds.

Coca-Cola raised its full-year guidance for the second time this year after second-quarter net revenue climbed 7% to $13.4 billion and comparable earnings per share rose 11% to 97 cents, beating Wall Street estimates by five cents. Global unit case volume grew 5%, the fastest pace in years outside pandemic-recovery comparisons, driven by a 16% jump in Zero Sugar volume and an 8% increase in Powerade volume, which was helped by placement during World Cup hydration breaks. The company now expects 2026 organic revenue growth of about 5%, up from a prior range of 4% to 5%, and raised comparable EPS growth guidance to 9% to 10% from 8% to 9%. CFO John Murphy told Reuters that the company lost value share in India's ready-to-drink beverage market due to aluminum can shortages, while rising aluminum and PET plastic costs are pressuring margins. Coca-Cola shares closed at $87.05 on Friday, near a 52-week high, and the stock is up roughly 26% so far this year.

Coca-Cola raised its 2026 outlook, citing broad-based momentum across emerging markets that is helping to offset pressure on lower-income consumers in North America. Management highlighted Asia Pacific, particularly India and China, as significant long-term opportunities, with India accounting for seven of the company's top 10 brands and both countries delivering strong volume growth. The company also reported broad-based growth across Latin America, Africa and Asia Pacific, underscoring an increasingly diversified growth engine beyond developed markets. In the United States, Coca-Cola is addressing consumer spending pressure through value-focused packaging, affordable price points and targeted innovation rather than relying solely on pricing. The Zacks Consensus Estimate for 2026 and 2027 earnings implies year-over-year growth of 9.7% and 6.7%, respectively, and the stock carries a Zacks Rank #2 (Buy).

Zacks Investment Research identifies five soft drink stocks poised for growth amid rising demand for healthier beverages and digital transformation. The Zacks Beverages – Soft Drinks industry, ranked in the top 37% of over 250 Zacks industries, is benefiting from consumer shifts toward zero-sugar, low-calorie, and functional drinks, as well as investments in AI, e-commerce, and smart manufacturing. The Coca-Cola Company, Monster Beverage Corporation, Fomento Económico Mexicano, Primo Brands Corporation, and The Vita Coco Company are highlighted as well-positioned to capitalize on these trends, though the industry faces headwinds from rising input costs and tariff uncertainty. Vita Coco holds a Zacks Rank #1, Coca-Cola and Primo Brands hold a Zacks Rank #2, and Monster Beverage and Fomento Económico Mexicano hold a Zacks Rank #3.

Coca-Cola raised its fiscal 2026 outlook following better-than-expected second-quarter results. The company now expects organic revenues to increase about 5% in 2026, at the high end of its previous 4-5% range, and comparable currency-neutral earnings per share to rise 7-8%, above the prior 6-7% forecast. Second-quarter revenues increased 7% year over year to $13.38 billion, beating the Zacks Consensus Estimate of $13.06 billion, while comparable earnings of 97 cents per share topped the consensus of 92 cents. Global unit case volume advanced 5%, supported by growth across markets and beverage categories, and comparable operating margin expanded to 35.6% from 34.7%. The pending sale of Coca-Cola Beverages Africa is expected to improve the structural margin profile but will create a 2-3% drag on comparable revenues and an approximately 1% headwind to comparable earnings per share for 2026.

A growing number of companies are raising their profit outlooks despite macroeconomic uncertainty. More S&P 500 firms are lifting guidance than cutting it, and Wall Street analysts have raised third-quarter earnings estimates for the index for the second consecutive quarter. Argus research analyst Christine Dooley views consistent guidance raises as a catalyst for market-beating returns. Among the companies that have raised guidance in the second quarter so far are Cheesecake Factory, Ford, General Motors, Hasbro, Starbucks, Coca-Cola, Charles Schwab, PayPal, US Bancorp, ASML, Seagate Technology, Supermicro Computer, Bristol Myers Squibb, Johnson & Johnson, UnitedHealth Group, 3M, Lockheed Martin, Northrop Grumman, United Airlines, and United Parcel Service.

Coca-Cola's early investment in zero-sugar drinks is paying off with stronger growth and market share gains, while PepsiCo struggles with declining volumes and brand fatigue. Coca-Cola Zero Sugar grew 16% globally in the second quarter, and Diet Coke and Coca-Cola Light added another 7%, helping drive a 5% volume gain and 6% organic revenue growth. In contrast, PepsiCo's North American beverage volume fell 4%, its North American food business saw organic revenue slip 2%, and overall organic revenue grew just 2.4%. Coca-Cola trades at a premium to PepsiCo, which offers a cheaper valuation and a higher dividend yield, but Coke's operational edge appears durable.

Zacks Investment Research recommends four consumer staples stocks as a defensive play amid declining consumer confidence and market volatility. Consumer confidence fell to 90.8 in July from an upwardly revised 92.2 a month earlier, according to the Conference Board, missing the consensus estimate of 92.3. The Present Situation Index declined 3.6 points to 114.9, marking its third straight monthly drop, while the Expectations Index held at 74.7. The recommended stocks are The Vita Coco Company, The Coca-Cola Company, John Wiley & Sons, and Carriage Services, all of which have seen positive earnings estimate revisions over the past 90 days.

The Consumer Staples Select Sector SPDR Fund rose 2.6% in July, as gains in discount retailers offset declines in alcoholic beverage and tobacco stocks. Target and Dollar General each rose about 10%, while Coca-Cola gained 7%, Molson Coors added 6.7%, and Philip Morris advanced 5.7%. Constellation Brands fell 6.3% to become the sector's worst performer, followed by Altria down 5.6%, Keurig Dr Pepper down 4%, and Procter & Gamble and Walmart each down 2%. Analyst Justin Purohit said Target's rally was driven by company-specific execution, while Dollar General's strength reflected consumers trading down amid inflation pressures, and he flagged discount retailers including Dollar Tree, TJX Companies, Ross Stores, and Burlington Stores as best positioned if inflation remains sticky.

This week’s tech selloff underscored a classic investing lesson: the market still rewards large, scaled companies that find a new gear. Meta shares tumbled after CFO Susan Li declined to provide a 2027 capex outlook, fueling fears of runaway AI spending. In contrast, Starbucks posted a 7.9% jump in global comparable-store sales, its fourth straight quarter of growth under CEO Brian Niccol, with adjusted earnings of $0.85 per share beating estimates by $0.19 and operating margin expanding to 14.4%. Coca-Cola delivered a 7% net sales increase to $13.4 billion and an 11% rise in comparable earnings per share to $0.97, driven by a 5% volume gain for its trademark brand and a 16% surge in Coca-Cola Zero Sugar. Both consumer giants raised guidance or signaled durable momentum, reminding investors to look beyond the AI trade.

Greg Abel is expected to continue holding Berkshire Hathaway's stake in Coca-Cola, a stock Warren Buffett backed for decades. Berkshire will receive $848 million in dividends from Coca-Cola this year, up from $75 million in 1994, when it completed its $1.3 billion purchase of Coca-Cola stock. Coca-Cola shares recently hit a record high after reporting a 7% revenue increase to $13.4 billion and a 16% rise in earnings per share to $1.03 for the 2026 second quarter. The strong results were aided by high visibility during the World Cup, with Powerade volume up 8% and trademark Coca-Cola volume up 5%. Abel has reassured shareholders he is not looking to shake up the portfolio, having sold 16 smaller positions in the first quarter while keeping the three stocks Buffett said he would never sell.

Coca-Cola has raised its dividend for the 64th consecutive year, reinforcing its status as a Dividend King. The stock has returned 26% in 2026 through late July, outpacing the S&P 500's 9% gain. The company reported second-quarter net revenue of $13.4 billion and adjusted earnings per share of $0.97, both exceeding analyst estimates, and raised its full-year adjusted EPS growth guidance to 9% to 10%. Free cash flow reached $6.9 billion over the past six months, supporting a current dividend yield of 2.4%.

Morgan Stanley raised its price target on Coca-Cola to $100 from $89 and kept the stock as its top pick in the beverage sector after the company posted adjusted earnings of 97 cents a share, beating the 93-cent consensus, and revenue rose 7% to $13.4 billion. Organic sales growth came in at 7%, well above the 5% consensus, with unit case volume growing 5%, more than double the 2.2% analysts had modeled. The bank highlighted that Coca-Cola has outpaced PepsiCo and Keurig Dr Pepper in U.S. Nielsen scanner sales by roughly 400 basis points and beaten mega-cap staples peers by nearly 300 basis points, while pushing through roughly 3% pricing in the quarter. Even the dairy brand Fairlife, which suffered an eleven-day production shutdown from a ransomware attack, still grew sales 18% year over year, and Morgan Stanley estimates Fairlife alone could add more than 100 basis points a year to corporate sales growth. Asia Pacific was a soft spot with price and mix falling 9%, but unit case growth remained strong at 8%, and the bank expects easier comparisons by the fourth quarter.

Coca-Cola stock reached an all-time high following its latest earnings report, which showed a 6% increase in organic revenue and a comparable operating margin of 35.6%, up from 34.7% a year ago. The company, a Dividend King with 64 consecutive years of payout increases, now pays an annual dividend of $2.12 per share. At the current price, a $25,000 investment buys 283 shares and generates $600 in annual passive income, reflecting a dividend yield of 2.4%. The yield has compressed from its historical level of around 3% as the stock price has surged.

Coca-Cola reported second-quarter 2026 earnings that surpassed analyst expectations and raised its full-year outlook, driven by pricing gains and a boost from FIFA World Cup demand. Comparable earnings per share rose 11% to 97 cents, beating the Zacks Consensus Estimate of 92 cents, while revenue grew 7% to $13.38 billion, exceeding the $13.06 billion estimate. Organic revenue increased 6%, with trademark Coca-Cola volume up 5% globally and Coca-Cola Zero Sugar surging 16%. The company now expects 2026 organic revenue growth of 5%, up from a prior forecast of 4% to 5%, and comparable earnings growth of 9% to 10% from a 2025 base of $3, compared with the previous outlook of 8% to 9%. Shares of Coca-Cola have gained about 27.5% year to date and rose 5% following the earnings release.

Coca-Cola reported quarterly results that exceeded Wall Street projections and raised its full-year earnings guidance, driven by strong demand in key areas. North American volume rose 3% despite higher fuel prices squeezing consumer spending, indicating the company is outperforming some rivals in one of its main regions. The results were also boosted by greater sales and a worldwide marketing effort tied to the World Cup. Shares rose more than 3% in early trading following the report. Investors will now focus on whether the North American momentum continues and if the company can sustain its higher earnings estimate.

The Dow Jones Industrial Average closed on July 28, 2026, surging 537.24 points to 52,747.32, boosted by strong earnings from Boeing and Coca-Cola, a more than 4% drop in crude oil prices, and a rotation out of semiconductors into traditional economy sectors ahead of the Federal Reserve meeting this Wednesday. The S&P 500 added 15.60 points to 7,428.78, while the Nasdaq fell 55.17 points to 24,876.91, pressured by chip stocks, with the VanEck Semiconductor ETF sliding more than 3% and shares of Micron and AMD each tumbling over 8%. European markets rose for a third straight session, with the Stoxx 600 gaining 0.35%, supported by strong results from Unilever. West Texas Intermediate crude fell $3.35 to settle at $79.26 a barrel, and Brent dropped $4.27 to $84.09 a barrel.

The Dow Jones Industrial Average closed up 537.24 points to 52,747.32, boosted by Boeing shares surging 4.8% and Coca-Cola rising 5%. The S&P 500 ended 0.21% higher, while the Nasdaq slipped 0.22% as selling in semiconductor stocks dragged the PHLX Semiconductor Index down 4.5%. Investors are eyeing earnings from major technology companies, including Microsoft reporting on Wednesday and Amazon and Apple on Thursday. Apple briefly touched a market value above 5 trillion dollars during the session. The market is also awaiting the Federal Reserve meeting, with a 71% chance of rates being held steady.

U.S. stocks settled mostly higher on Tuesday, with the Dow Jones Industrial Average climbing to a 1.5-week high, up 1.03%, and the S&P 500 adding 0.21%, while the Nasdaq 100 fell 0.98% to a 2.75-month low. Better-than-expected earnings from Boeing, Coca-Cola, and Sherwin-Williams supported the broader market, and software stocks rallied as investors rotated into recently underperforming sectors. However, the Nasdaq 100 was pressured by a deepening rout in chipmakers and AI-infrastructure stocks, driven by fresh concerns over artificial intelligence spending and rising competition from China, alongside an unexpected decline in U.S. July consumer confidence. Lower crude oil prices, with September WTI crude falling more than 4% to a one-week low, eased inflation concerns and pushed the 10-year Treasury yield down 5 basis points to 4.60%. The Conference Board's consumer confidence index unexpectedly fell to 90.8, below the expected 92.4, while the S&P CoreLogic Case-Shiller home price index rose 1.6% year-over-year in May, the largest increase in 10 months.

In New York trading on the 28th, the dollar edged lower but held near a one-month high, while the 10-year Treasury yield declined for a third straight session. The Dow Jones Industrial Average and the S&P 500 both extended their gains. The dollar index against major currencies slipped 0.2 percent to 101.35, staying close to the late-June high of 101.80. Markets are pricing in about a 40 percent probability of a rate hike at the FOMC meeting on the 29th, up from around 20 percent a week ago. The 10-year yield fell 3.9 basis points to 4.602 percent, and the 2-year yield dropped 4.8 basis points to 4.275 percent, as falling crude oil futures fueled expectations of easing inflationary pressures. In equities, Boeing rose 4.8 percent and Coca-Cola gained 5 percent, while the Philadelphia Semiconductor Index tumbled 4.5 percent and the Nasdaq Composite edged lower. Gold futures slipped 0.9 percent to 4,038.70 dollars per ounce, weighed by a stronger dollar, and US WTI crude oil futures settled 4.1 percent lower at 79.26 dollars a barrel.

Boeing surged 6% and Coca-Cola jumped 4% on Tuesday, powering the Dow Jones Industrial Average while the NASDAQ 100 slipped 0.48% as investors rotated out of AI-heavy growth names. Boeing shares rose to $223.18 after the company reported adjusted free cash flow of $631 million, far exceeding the expected outflow of about $331 million, despite a wider adjusted loss of $0.76 per share tied to a $280 million charge on the Air Force One VC-25B program. Coca-Cola shares climbed to $87.72, on pace for their best day since February 2009, after the company posted its fifth straight earnings beat with adjusted EPS of $0.97 versus a $0.9323 consensus and raised full-year guidance to 5% organic revenue growth and 9% to 10% comparable EPS growth. The SPDR Dow Jones Industrial Average ETF gained 1.3%, with other Dow components including McDonald's, Verizon Communications, Procter & Gamble, and Johnson & Johnson also trading higher, while the S&P 500 added 0.49% and the NASDAQ 100 fell 0.48%.

U.S. stock indexes were mixed on Tuesday, with the Dow Jones Industrial Average climbing to a 1.5-week high while the Nasdaq 100 fell to a 2.75-month low. The Dow rose 0.738% and the S&P 500 edged up 0.05%, but the Nasdaq 100 dropped 1.12% as a deepening rout in chipmakers and AI-infrastructure stocks weighed on the market. Better-than-expected earnings from Coca-Cola and Sherwin-Williams provided support, while an unexpected decline in the Conference Board's July consumer confidence index to 90.8 added to cautious sentiment. The iShares Semiconductor ETF fell more than 5% to a 2.5-month low, with Sandisk down over 14% and Western Digital down over 13%. In contrast, software stocks gained, with Workday up over 7% and Thomson Reuters up over 6%.

The Dow Jones Industrial Average climbed 659 points, or 1.3%, on Tuesday as strong earnings from Coca-Cola and Sherwin-Williams lifted blue-chip stocks while falling oil prices added support. Sherwin-Williams stock surged 8% after topping second-quarter estimates, Coca-Cola stock climbed 5% after beating on revenue and earnings and lifting its full-year guidance, and Salesforce stock also gained 5%. A broad rotation out of technology and into other sectors drove much of the day's action, with consumer-staples stocks leading the S&P 500 with a 2.7% gain. The VanEck Semiconductor ETF dropped more than 3%, marking a fourth straight session of losses for chip stocks, while West Texas Intermediate crude futures fell 5% to just above $78 per barrel. The Federal Reserve is set to announce its rate decision on Wednesday, with fed funds futures pricing in a quarter-point rate increase in September.