January's CPI reading came in well above expectations
A hotter-than-expected consumer price index (CPI) is pressuring stocks this morning, marking a 0.5% rise in January that was well above estimates of a 0.3% increase. Plus, the core 12-month inflation rate rose above expectations to 3.3%. Futures on the Dow Jones Industrial Average (DJIA) and Nasdaq-100 Index (NDX) are carrying triple-digit deficits, while S&P 500 Index (SPX) futures are gapping lower as well. The 10-year Treasury yield topped 4.6% in response to inflation data, as fears of higher interest rates and an economic slowdown reemerge.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.8 million call contracts and 945,786 put contracts exchanged on Tuesday. The single-session equity put/call ratio rose to 0.53 and the 21-day moving average stayed at 0.60.
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Intel Corp (NASDAQ:INTC) stock is up 4.9% in premarket trading, looking to extend the previous session's 6.1% gain. This bull gap comes after Vice President J.D. Vance said the Trump administration will prioritize building artificial intelligence (AI) systems in the U.S. with
American-made chips. INTC carries a 52.5% year-to-date deficit.
- Biogen Inc (NASDAQ:BIIB) reported a fourth-quarter earnings and revenue beat, thanks to cost cutting and new product growth. The biotech name's lackluster profit forecast for 2025 is capping gains, however. BIIB is up 1.5% ahead of the open, and shed 43% in the last 12 months.
- CVS Health Corp (NYSE:CVS) is down 10.9% before the bell, after the pharma retailer reported better-than-expected earnings and revenue for the fourth quarter, while its 2025 profit outlook met expectations. CVS is down 28.8% year over year.
- Inflation data for January is on tap this week.
Asian Markets Brush Off Tariff Tensions
Asian markets finished higher on Wednesday, despite rising trade tensions with the U.S. amid Trump’s tariffs. Hong Kong’s Hang Seng led the region with a 2.6% pop, while Japan’s Nikkei returned from holiday with a 0.4% gain. Elsewhere, China’s Shanghai Composite and the South Korean Kospi rose 0.8% and 0.4%, respectively, with Alibaba (BABA) propping up the former amid a partnership with Apple (AAPL).
European markets are moving quietly today, as investors await U.S. inflation data. Notably, Dutch brewer Heineken (HEINY) is surging after earnings, up over 12% and heading for its best day since 1989. At last look, London’s FTSE 100 was up 0.02%, the French CAC 40 was down 0.02%, and the German DAX was 0.3% higher.