Why Coca-Cola Stock Is Moving

Coca-Cola Co KO shares are trading lower by 1.2% to $56.91 during Monday's session, depsite a lack of company-specific news. Several consumer discretionary and consumer staples stocks are volatile in recent sessions with concerns about future rate hikes following last Wednesday's FOMC statement and lower-than-expected initial jobless claims data.

See Also: Coca-Cola Short Seller Says Dominance Fizzles In Face Of Bubbly Upstarts, Weight Loss Drugs

When there are concerns about future rate hikes, it can lead to higher borrowing costs for both consumers and businesses. For a company like Coca-Cola, which relies on consumer spending and has debt on its balance sheet, higher interest rates can increase its cost of capital.

This, in turn, can lead to a decrease in the present value of the company's future cash flows, which can put downward pressure on its stock price.

Coca-Cola stock is also known for its dividend payments, and it is often considered by income-focused investors. When interest rates rise, fixed-income investments like bonds become more attractive in comparison to dividend-paying stocks.

This can lead some investors to shift their investments away from stocks like Coca-Cola, potentially putting downward pressure on its stock price.

What's Going On?

The Federal Reserve last week maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.

The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year...Read More

According to data from Benzinga Pro, Coca-Cola has a 52-week high of $64.99 and a 52-week low of $54.02.