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5 things to know before the stock market opens Thursday

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Here are the most important news, trends and analysis that investors need to start their trading day:

1. Stock futures mixed ahead of key consumer inflation data

Traders on the floor of the NYSE, Feb. 9, 2022.

Source: NYSE

Wall Street’s multiday rally may depend on how key inflation data comes in at 8:30 a.m. ET. Ahead of expectations that consumer prices in January will stay at 40-year highs, U.S. stock futures were mixed and the 10-year Treasury yield ticked lower to 1.92%, just under highs back to November 2019. Earnings season continues Thursday, the morning after Disney reported strong results, sending the Dow stock up 7.5% in premarket trading.

2. Consumer prices in January expected to stay at 40-year highs

Economists expect the January consumer price index to rise 7.2% year over year, according to Dow Jones, the highest since 1982 and up from 7% in December. Core CPI, excluding food and energy, is expected to climb in January to 5.9% year over year. In the final month of last year, core CPI gained 5.5% year over year.

The CPI is key for markets since inflation is seen as a direct trigger for the Federal Reserve’s first Covid-era interest rate hikes, which are expected to begin in March. Initial jobless claims, also out at 8:30 a.m. ET, are seen dipping to 230,000 for the week ended Feb. 5.

3. Coca-Cola, PepsiCo both beat estimates on earnings, revenue

A worker restocks a display of Coca-Cola Co. soft drinks at a store in Orem, Utah, U.S., on Tuesday, Feb. 9, 2021.

George Frey | Bloomberg | Getty Images

Coca-Cola on Thursday reported quarterly earnings and revenue that topped expectations, and the Dow stock rose nearly 1% in the premarket. Profit in the fourth quarter was 45 cents per share on $9.46 billion in revenue. However, Coca-Cola issued a weaker-than-expected outlook, predicting higher inflation would continue as a drag on its earnings throughout 2022.

In this photo illustration PepsiCo products are shown on October 05, 2021 in Chicago, Illinois.

Scott Olson | Getty Images

PepisCo shares were basically flat in the premarket after the soda and snacks company Thursday beat expectations with fourth-quarter earnings and revenue but, similar to Coca-Cola, warned of inflationary pressures ahead from rising transportation and packaging costs. Profit in the quarter was $1.53 on sales of $25.25 billion. Pepsi expects in the coming year to pay $6.2 billion in dividends and execute buybacks totaling $1.5 billion.

4. Shares of Twitter, Uber pop after reporting quarterly results

A person in a mask approaches the New York Twitter offices after they announced they will close their re-opened offices effective immediately in response to updated CDC guidelines during the outbreak of the coronavirus disease (COVID-19) in Manhattan, New York City, U.S., July 29, 2021.

Andrew Kelly | Reuters

People wear protective masks in front of Uber Technologies Inc. headquarters in San Francisco, California, U.S., on Wednesday, June 9, 2021.

David Paul Morris | Bloomberg | Getty Images

Uber shares gained 5.5% in Thursday’s premarket, the morning after the company reported better-than-expected quarterly revenue. Uber’s ride-hailing rebounded and Uber Eats food delivery continued to see strong demand. The company reported fourth-quarter net income of $892 million, including a $1.4 billion net benefit, pretax, related to its equity investments. Uber’s EPS of 44 cents includes that investment gain. Excluding it, Uber posted a narrower-than-expected loss of 26 cents per share.

5. Disney’s blockbuster earnings led by parks recovery, streaming growth

People leave the Disneyland Resort on Disneyland Park and Disney California Adventure’s reopening day amidst the coronavirus disease (COVID-19) outbreak, in Anaheim, California, April 30, 2021.

Mario Anzuoni | Reuters

Disney late Wednesday said it earned an adjusted $1.06 per share in its fiscal first quarter, helped by growth in its Disney+ subscriber base and record profit from its theme parks. Revenue of $21.82 billion also beat estimates. Disney+ subscribers surpassed projections, coming in at 129.8 million. Revenue of $7.2 billion at Disney’s parks, experiences and consumer products division doubled from pandemic-depressed year-ago levels and came in above estimates.

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