Tuesday Market Update: CPI, Earnings in Focus
By 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).[0] 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.[0]
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).[1] It was down 0.5 percent, but the consensus is for an increase of 0.4 percent.[2] 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.[3] 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.[4]
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.[1] Analysts anticipate that the May gathering will result in an additional similar-sized rise.[5]
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.[1]
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]
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
