Tuesday Market Update: CPI, Earnings in Focus
On Tuesday, US futures traded slightly lower in the pre-market session, with some of the stocks that may be in focus including Avis Budget Group, Inc. (NASDAQ: CAR), Marriott International, Inc. (NASDAQ: MAR), Arista Networks, Inc. (NYSE: ANET), The Coca-Cola Company (NYSE: KO), and Roblox Corp (NYSE: RBLX). Analysts expect Marriott to have earned $1.89 per share on revenue of $5.47 billion for the latest quarter, while Coke is estimated to post quarterly earnings at $0.45 per share on revenue of $10.02 billion.
On the economic front, the Bureau of Labor Statistics will release the Consumer Price Index (CPI) for January at 8:30 ET (13:30 GMT). It was down 0.5 percent, but the consensus is for an increase of 0.4 percent. The Producer Price Index or PPI for January is expected at 8:30 am ET with the consensus for an increase of 0.4 percent, while it was down 0.5 percent. The Core Consumer Price Index, omitting fuel and energy costs, is predicted to go up by 0.4% in the month and 5.5% over the year.
The Federal Reserve has been analyzing data on inflation and employment to determine their next move on interest rates, and the market is anticipating a quarter point increase when the meeting takes place next month. Analysts anticipate that the May gathering will result in an additional similar-sized rise.
Investors will be keeping an eye on the CPI as the market expects the Fed to raise interest rates another quarter of a percentage point when it meets in March. The market predicts that the benchmark rate will reach a point higher than 5% in the summer, and that is when the Federal Reserve might stop raising the rate.
Besides the CPI data, investors will also be paying close attention to the earnings results of Avis Budget Group, Arista Networks, Marriott International, The Coca-Cola Company, and Roblox Corp. Avis Budget reported better-than-expected results for its fourth quarter on Monday, while Arista Networks reported upbeat results for its fourth quarter and issued strong Q1 sales forecast.
0. “Coca-Cola, Marriott International And 3 Stocks To Watch Heading Into Tuesday By Benzinga” Investing.com UK, 14 Feb. 2023, https://uk.investing.com/news/stock-market-news/cocacola-marriott-international-and-3-stocks-to-watch-heading-into-tuesday-2913629
1. “Consumer prices, Coca-Cola, Travel earnings: 3 things to watch By Investing.com” Investing.com, 13 Feb. 2023, https://www.investing.com/news/stock-market-news/consumer-prices-cocacola-travel-earnings-3-things-to-watch-3002096
2. “Wall Street Might Open Broadly In Negative Territory” RTTNews, 15 Feb. 2023, https://www.rttnews.com/3344275/wall-street-might-open-broadly-in-negative-territory.aspx
3. “Wall Street Poised To Start Lower” RTTNews, 16 Feb. 2023, https://www.rttnews.com/3344652/wall-street-poised-to-start-lower.aspx
4. “5 things to know before the stock market opens Tuesday” CNBC, 14 Feb. 2023, https://www.cnbc.com/2023/02/14/5-things-to-know-before-the-stock-market-opens-tuesday-february-14.html
5. “Producer prices, Applied Materials, Constellation Energy: 3 things to watch” Yahoo Entertainment, 15 Feb. 2023, https://www.yahoo.com/entertainment/producer-prices-applied-materials-constellation-160225623.html
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