Here are the most important news, trends and analysis that investors need to start their trading day:
Traders on the floor of the NYSE, Feb. 9, 2022.
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.
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.
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.
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.
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.