What to watch today: Stock futures fell, bond yields rise after strong inflation report
BY THE NUMBERS
U.S. stock futures turned lower Thursday after government data showed a stronger-than-expected increase in consumer inflation. The 10-year Treasury yield jumped to 1.98%, around late 2019 highs. Earnings season continues Thursday, the morning after Disney reported strong results, sending the Dow stock up 7% in premarket trading. (CNBC)
The Dow Jones Industrial Average and the S&P 500 on Wednesday both posted solid advances for the third straight session. The Nasdaq logged back-to-back gains, with the tech-heavy index 9.7% below its Nov. 19 record close but 10.6% below its Nov. 22 all-time intraday high.
The January consumer price index rose 7.5% year over year, more than estimates and the biggest jump since February 1982. Core CPI, excluding food and energy, rose in January 6% year over year, slightly higher than estimates and the biggest increase since August 1982. The CPI is key for markets since inflation is seen as a direct trigger for Fed interest rate hikes, which are expected to begin in March. (CNBC)
Initial jobless claims, also out before the bell, dropped to 223,000 for the week ended Feb. 5, fewer than expected.
IN THE NEWS TODAY
Coca-Cola (KO) 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. (CNBC)
PepisCo (PEP) 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. (CNBC)
Shares of Twitter (TWTR) rose 4% in premarket trading after the social media company announced a new $4 billion share buyback program. In its first earnings report under new CEO Parag Agrawal after co-founder Jack Dorsey stepped down from that role in November, the company missed estimates on profit of 33 cents per share, revenue of $1.57 billion and monetizable daily active users of 217 million. (CNBC)
Uber (UBER) shares gained 5.5% in Thursday's premarket, the morning after the company reported better-than-expected quarterly revenue. 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. (CNBC)
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 division doubled from pandemic-depressed year-ago levels and came in above estimates. (CNBC)
* Investing Club: Disney rewards its patient investors with a blockbuster quarter (CNBC)
* Investing Club: 4 things Disney CEO Bob Chapek said that give us confidence (CNBC)
Binance, the world's biggest cryptocurrency exchange, is making a $200 million strategic investment in Forbes, the 104-year old magazine and digital publisher, CNBC has learned. The funds will help Forbes execute on its plan to merge with a publicly-traded special purpose acquisition company, or SPAC, in the first quarter, according to people with knowledge of the deal. (CNBC)
Peloton (PTON) held a virtual all-hands meeting Wednesday that was meant to introduce its new CEO, Barry McCarthy. Instead, a conversation between McCarthy and former CEO John Foley was abruptly cut short, according to three people familiar with the details of the meeting. (CNBC)
* Activist Macellum seeks to take control of Kohl's board, nominates 10 directors (CNBC)
Salesforce (CRM) told employees Wednesday the company plans to release an NFT Cloud, according to people with knowledge of the matter. NFTs, or nonfungible tokens, are unique digital assets stored using blockchain. Salesforce sees an opportunity to bring them into enterprise software. (CNBC)
The Biden administration this week rolled out a plan to allocate $5 billion to states to fund electric vehicle chargers over five years, as part of the bipartisan infrastructure package that includes $7.5 billion to build a sprawling network of EV charging stations across the country. (CNBC)
The select House committee investigating the Jan. 6 Capitol riot issued a subpoena seeking testimony and records from Peter Navarro, who had served as trade advisor to former President Donald Trump. Navarro in a statement to CNBC noted that Trump had invoked executive privilege. (CNBC)
STOCKS TO WATCH
Twilio (TWLO) rocketed nearly 20% higher in premarket action after the communications software company reported a narrower-than-expected quarterly loss and revenue that was well above estimates. Twilio also issued an upbeat current-quarter revenue outlook.
Mattel (MAT) came in 23 cents above estimates with adjusted quarterly earnings of 53 cents per share, and the toy maker's revenue also beat analysts forecasts. Mattel's results were driven in part by growth in its Barbie brand, and it also issued an upbeat 2022 outlook. The shares soared 12.6% in the premarket.
Tapestry (TPR), owner of Coach and Kate Spade brands, reported adjusted quarterly earnings of $1.33 per share, beating estimates. Revenue also beat. Tapestry raised its full-year guidance on rising demand for its luxury goods. The stock rose 3.8% in the premarket.
Canada Goose (GOOS) tumbled 10% in premarket trading after its earnings fell below analyst forecasts, although revenue topped predictions. The maker of winter wear cut its full-year forecast, as Covid-related restrictions impact demand for its parkas and footwear.
Sonos (SONO) allied 6.4% in premarket trading after topping analyst estimates on the top and bottom lines for the latest quarter. The maker of smart audio equipment said demand remains strong although it is still being impacted by supply chain issues.
Datadog (DDOG) surged 14.5% in the premarket after the cybersecurity platform company reported better-than-expected profit and revenue for its latest quarter.