The latest Consumer Price Index (CPI) report showed a rise of 0.3% in January, surpassing expectations and signaling a potential delay in interest rate cuts by the Federal Reserve. The year-over-year inflation rate accelerated to 3.1%, with shelter costs contributing significantly to the increase. Food index also rose, with both food at home and away from home experiencing a monthly uptick, while energy index saw a decline due to lower gasoline prices. Core CPI, excluding food and energy, also exceeded forecasts with a 0.4% rise.
Following the inflation report, U.S. stock index futures saw a decline, with Nasdaq 100 futures (NDX:IND) dropping by 1.6% and S&P futures (SPX) by 1.0%. Doubts in the chip sector were fueled by Lattice Semiconductor's (LSCC, Financial) weak guidance, while Dow futures (INDU) also fell by 0.7%. The market's reaction reflects concerns over an underpriced risk of inflation resurgence, despite a strong labor market and economic growth projections.
Shopify Inc. (SHOP, Financial) shares fell nearly 12% ahead of the market opening, despite reporting a Q4 top and bottom line beat. The company's gross merchandise volume surged by 23% year-over-year, and it forecasts Q1 2024 revenue growth slightly above consensus estimates. However, the stock's significant rise in value in 2023 set high investor expectations that were not fully met.
Microsoft's (MSFT, Financial) new AI assistant software, Copilot for Microsoft 365, received mixed reviews from testers over a six-month period. While the tool showed promise, concerns about its accuracy and value at its current price point were raised. Juniper Networks (JNPR, Financial) expressed hesitation in adopting the tool company-wide at the current pricing.
Several stocks saw significant movements, with notable gainers including Ohmyhome (OMH, Financial), ARB IOT Group (ARBB, Financial), and VCI Global (VCIG, Financial). On the other hand, G1 Therapeutics (GTHX, Financial) and Polished.com (POL, Financial) experienced sharp declines following updates on a study and payment issues, respectively.
Datadog (DDOG, Financial) shares dropped premarket after the company's annual forecast fell short of expectations. Despite a 26% year-over-year revenue increase in Q4, the full-year forecast disappointed investors. The company also reported a substantial growth in larger customers and a robust adjusted operating margin.
British American Tobacco (BTI, Financial) announced a quarterly dividend increase, reflecting confidence in its focus on smokeless tobacco and financial stability. The company also provided an outlook for the fiscal year, emphasizing its commitment to growth and shareholder returns.
Beamr Imaging (BMR, Financial) shares are poised to continue their gains after announcing a collaboration with Nvidia (NVDA, Financial) to promote the adoption of the AV1 video standard. The company also disclosed the pricing of a public offering aimed at funding research and development, among other initiatives.
CRISPR Therapeutics (CRSP, Financial) entered into an investment agreement for a registered direct offering, with significant participation from institutional investors. The financing is expected to support the company's ongoing development efforts.
Federal REIT (FRT, Financial) maintained its quarterly dividend, signaling stability and investor confidence. The company's guidance and earnings call transcript provided insights into its performance and outlook for the year ahead.
Shopify's (SHOP, Financial) early trading decline came despite a positive Q4 report, with the company emphasizing its commitment to innovation and merchant support for the upcoming year. Revenue growth expectations for 2024 were set at a low-twenties percentage rate year-over-year.
The CPI report also highlighted a 3.9% year-over-year increase in core inflation, with food categories showing both increases and decreases in prices. The report suggests a moderating inflation trend for certain food groups, influenced by lower transportation and shipping costs.
Ecolab (ECL, Financial) shares surged premarket after an optimistic earnings outlook for the current quarter, projecting significant earnings growth and a continuation of the company's long-term growth trajectory.
Digital Brands Group (DBGI, Financial) reaffirmed its fiscal year 2024 forecast, committing to no equity offerings for the year and highlighting revenue scale and reduced operating costs.
Coca-Cola Company (KO, Financial) experienced an early trading boost following a strong Q4 earnings report, with organic sales surpassing estimates and robust guidance set for the future.
3D Systems (DDD, Financial) and Stratasys (SSYS, Financial) received positive coverage from Cantor Fitzgerald, with price targets set at nearly double their current trading prices, indicating a bullish outlook for the 3D printing industry.
InMode (INMD) released its Q4 earnings, beating expectations and providing a positive outlook for 2024, with anticipated revenue growth and a focus on international expansion and consumables sales.
