1. The consumer price index, used to measure inflation, rose 0.5% in January, putting the year-over-year change at 6.4%. Both numbers beat the expectations of economists surveyed by Dow Jones, who estimated 0.4% and 6.2%, respectively. Recent comments from Federal Reserve officials indicate the central bank is willing to continue raising interest rates to bring inflation back in line with its target of 2%. Q: Do you think inflation will continue to rise over the next few months? Let us know at Inside.com. |
2. On Tuesday, Coca-Cola reported Q4 earnings that beat analysts' expectations, with $10.13B in revenue driven by price increases for its beverages. Higher prices led to a slight reduction in demand, with Coke's unit case volume dropping 1% in the quarter. Investors were unfazed, leading Coca-Cola's stock to remain flat throughout the day. |
3. FanDuel's Irish parent company Flutter Entertainment is considering listing on a U.S. stock exchange as its board begins to gauge interest among its current European shareholders. The development follows a record-breaking weekend for sportsbooks amid Super Bowl LVII, during which FanDuel's online gambling platform averaged 2 million active users and accepted 50,000 bets per second at its peak. Q: Would U.S. investors respond positively to a Flutter Entertainment stock listing? Share your thoughts on Inside.com. |
4. Ford has put the brakes on production and shipment of its electric F-150 Lightning truck in response to a potential battery issue, according to spokeswoman Emma Bergg. The pause in production is the latest in a series of "execution issues," which Ford CEO Jim Farley vowed to improve after the automaker posted dismal Q4 earnings. |
5. Airbnb shares jumped 11% in extended trading on Tuesday after the vacation rental company surpassed analysts' expectations for its Q4 earnings and posted its first profitable year. Revenue for the quarter was up 24% YoY to $1.9B, with $319M in net income compared to $55M last year. |
6. In a recent Bank of America survey of 299 fund managers with a combined $847B in assets under management, only 24% of investors predicted a recession, compared to the 77% who did in November. As investors adopt a more optimistic outlook, partly due to the Fed's dovish comments on future rate hikes, they are swapping more cash for equity allocations. |
7. Retail sales experienced a 3% bump in January, beating Dow Jones' estimate of 1.9%, with food service and drinking places, motor vehicle and parts dealers, and furniture stores seeing the most growth. Year-over-year retail sales rose 6.4%, the exact amount the CPI increased in the same period. Despite the positive news, stocks moved lower on Wednesday, with other economic indicators, like industrial production, utilities, and capacity utilization underperforming investor expectations. |