News of the day for February 13, 2024
Published February 13, 2024
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The consumer price index reading for January, due for release this morning, is expected to show continued signs of cooling inflation, supporting the case for the Federal Reserve to start cutting interest rates. Coca-Cola’s (KO) fourth-quarter sales and guidance came in better-than-expected, while Tripadvisor (TRIP) shares are rising on the prospects of a deal and shares of JetBlue Airways (JBLU) are surging after Carl Icahn disclosed an almost-10% stake. Here’s what investors need to know today.
1. CPI Likely To Show Easing Price Pressures
Economists expect that the January Consumer Price Index (CPI), due to be released at 8:30 a.m. ET, will show slower growth than it did for December, which would be good news for consumers and market participants. The widely watched inflation gauge compiled by the Bureau of Labor Statistics is likely to have risen 2.9% over the 12 months to January, down from 3.4% the prior month, according to a survey of economists by Dow Jones Newswires and the Wall Street Journal. A disinflationary reading from this data point, as well as others in the coming weeks, would support the case for the Federal Reserve to start cutting interest rates, though Fed Chairman Jerome Powell has already said the base case isn’t for a March rate cut.
2. Coca-Cola Q4 Sales, Outlook Beat Forecasts
Coca-Cola’s (KO) fourth-quarter sales beat forecasts and showed that consumers are still buying its drinks even though it has hiked prices amid inflation pressures. The company posted revenue for the three months to December of $10.85 billion, up 7% year-on-year, and exceeding the $10.76 billion forecast by analysts. The world’s most valuable beverage company also said it expects 2024 organic revenue growth to be 6% to 7%, ahead of analysts’ expectations for 5.9% growth. Earnings per share came in as expected at 49 cents. Coca-Cola shares were up about 0.3% in pre-market trading.
3. Tripadvisor Rises as Committee to Look Into Deals
Tripadvisor (TRIP) shares surged almost 12% in pre-market trading, after the travel-website operator said it had established a special committee to consider potential deal proposals. Tripadvisor will release its fourth quarter and full-year 2023 financial results on Wednesday after the closing bell, with investors likely to focus on any information on the transaction the company is weighing.
4. Cadence Slumps as Guidance Falls Below Forecasts
Cadence Design Systems (CDNS) were nearly 9% lower this morning after the company’s guidance for the first quarter undershot analysts’ forecasts, even as its fourth-quarter results topped expectations. The company, which provides software for artificial intelligence hardware, said late Monday it sees adjusted earnings in the current quarter of $1.10 to $1.14 per share on revenue of between $990 million and $1.01 billion.
5. Jetblue Jumps After Carl Icahn Discloses Stake
Shares of JetBlue Airways (JBLU) rose more than 14% in pre-market trading after activist investor Carl Icahn disclosed a 9.91% stake in the airline, saying the stock represents “an attractive investment opportunity.” The billionaire said in a filing he is also in talks with the carrier’s management about the possibility of board representation. JetBlue’s plans to expand have been hobbled by federal courts in the past year, leading the airline to pull out of a partnership with American Airlines (AAL) and scrap an acquisition of Spirit Airlines (SAVE) last month.
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