Dow Futures Flat as Bond Market Turns Volatile

Futures on the Dow Jones Industrial Average (DJI) are struggling for direction this morning, last seen just below breakeven as investors continue to digest yesterday's hotter-than-expected inflation reading and the subsequent spike in the 10-year Treasury yield, which topped 2% for the first time since 2019. Meanwhile, the 2-year yield saw its widest single-day jump since 2009. Futures on the S&P 500 (SPX) and Nasdaq-100 Index (NDX) are also sitting slightly below their respective breakeven levels, while traders weigh the possibility of even more upcoming interest rate hikes.

Continue reading for more on today's market, including:  

• Another look at Mattel's impressive earnings story. 
• Weighing the pros and cons of 2 easy options strategies. 
• Plus, EXPE jumps on earnings beat; AFRM gaff sends stock spiraling; and UAA eyes supply chain headwinds. 

5 Things You Need to Know Today

1. The Cboe Options Exchange (CBOE) saw 1.75 million call contracts traded on Thursday, and 862,926 put contracts. The single-session equity put/call ratio rose to 0.49, and the 21-day moving average stayed at 0.54.
2. Expedia Group Inc (NASDAQ:EXPE) posted a fourth-quarter earnings beat, and revenue that fell just below estimates. It added that the effects of Covid-19 were not as hard on its travel booking as prior waves, leading the stock 5.8% higher ahead of the bell. 
3. Affirm Holdings Inc (NASDAQ:AFRM) stock is extending yesterday's 21.4% plunge, down 10.8% this morning, following Thursday's inadvertently early earnings release. The company missed expectations, and posted a higher transaction volume forecast. 
4. The shares of Under Armour Inc (NYSE:UAA) are down 2.6% in premarket trading. While the company's fourth-quarter earnings and revenue topped estimates, its gross margins dropped by 200 basis points during the current-quarter due to supply chain issues. 

5. The week will wrap up with the University of Michigan consumer sentiment index and the UMich 5-year inflation expectations.

Overseas Markets React to U.S. Inflation Data

Markets in Asia slipped today, as investors reacted to the U.S. inflation report. The South Korean Kospi led the losses with a 0.9% deficit, after video game maker Krafton fell 12.8% following a steep drop in net profit for the fourth quarter. Hong Kong's Hang Seng and China's Shanghai Composite fell 0.07% and 0.7%, respectively, while Japan's Nikkei was closed for holiday.

The stateside inflation report is still weighing on the European bourses as well, while investors unpack plenty of corporate earnings. London's FTSE 100 is down 0.6% at last glance, while the French CAC 40 drops 1%, and the German DAX sheds 0.3%.