The stock market has been volatile in recent weeks as investors try to gauge the direction of the markets. On February 9, 2023 at 1:00 AM +00:00, the Dow Jones Industrial Average declined -0.46% and lost about -156.66 points, settling at the end of trading at 34,089.28.[0] This was a break from a two-session streak of gains, where on Monday the Dow was up 1.11%.[1] The S&P 500 rose 1.6% and the Nasdaq Composite jumped 3.3% last week.[2] The small-cap Russell 2000 index was up 3.9% over the same period.[3]
Inflation data is being heavily watched by the Federal Reserve as it prepares to meet next month.[4] The consensus is for an increase of 0.5% month-over-month and 6.2% year-over-year in January’s Consumer Price Index (CPI). However, this figure ended up being higher than expected, coming in at 0.5% month-over-month and 6.4% year-over-year. Core CPI, which excludes fuel and energy prices, was higher than the predicted 0.4% and 5.5%, coming in at 0.4% and 5.6% respectively.[5]
On the economic front, the Commerce Department’s Retail Sales for January was published at 8:30 AM ET, with a consensus of 1.7% uptick from December’s 1.1%.[4] The figure ended up being higher than expected, at 1.8%. Business Inventories for December were released at 10:00 AM ET, with a consensus of 0.3% increase from November’s 0.4%.[6]
Stocks of companies such as Cisco Systems Inc (NASDAQ: CSCO), Airbnb Inc (NASDAQ: ABNB), Marriott International Inc (NASDAQ: MAR), and The Coca-Cola Company (NYSE: KO) will all be watched as they look to release their financial figures in the postmarket period. Cisco Systems Inc (NASDAQ: CSCO) is projected to announce a profit of $0.86 per share on revenue of $13.4B, Airbnb Inc (NASDAQ: ABNB) is expected to report earnings per share of 25 cents on revenue of $1.[7]
0. “Dow futures tick lower, CPI in focus By Investing.com” Investing.com, 12 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-tick-lower-cpi-in-focus-3001275
1. “Dow Jones Technical Analysis: The Index is Falling Due to Stubborn Resistance” DailyForex.com, 15 Feb. 2023, https://www.dailyforex.com/forex-technical-analysis/2023/02/dow-jones-technical-analysis/191500
2. “Dow Jones Futures Fall: Stock Market Rally Signals It’s No Bear Run, But Don’t Get Complacent | Investor’s Business …” Investor’s Business Daily, 6 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-rally-signals-its-not-a-bear-run-what-to-do-now/
3. “Dow Jumps Over 300 Points, Dollar Surges in Midday Trading” Marketscreener.com, 13 Feb. 2023, https://www.marketscreener.com/quote/stock/FIDELITY-NATIONAL-INFORMA-12027/news/Dow-Jumps-Over-300-Points-Dollar-Surges-in-Midday-Trading-42974955
4. “Retail sales, Cisco earnings, Shopify results: 3 things to watch” Yahoo! Voices, 14 Feb. 2023, https://www.yahoo.com/now/retail-sales-cisco-earnings-shopify-154646688.html
5. “5 things to know before the stock market opens Tuesday” CNBC, 14 Feb. 2023, https://www.cnbc.com/2023/02/14/5-things-to-know-before-the-stock-market-opens-tuesday-february-14.html
6. “Wall Street Might Open Broadly In Negative Territory” RTTNews, 15 Feb. 2023, https://www.rttnews.com/3344275/wall-street-might-open-broadly-in-negative-territory.aspx
7. “Consumer prices, Coca-Cola, Travel earnings: 3 things to watch By Investing.com” Investing.com, 13 Feb. 2023, https://www.investing.com/news/stock-market-news/consumer-prices-cocacola-travel-earnings-3-things-to-watch-3002096