Beat the Street: CPI; Delta; Walgreens; Ford
A hotter-than-expected CPI reading after high PPI prompts US interest rate concerns. Delta Air Lines’ quarterly profit tops estimates. Walgreens Boots Alliance sees weak annual profit. Plus, US car strike spreads at Ford.
(Video Transcript Summary)
Birkenstock IPO flops
In this edition of Beat the Street, host financial analyst Angeline Ong highlights key factors like the consumer price index (CPI), jobs data, tensions in the Middle East and oil prices. She says Delta Air Lines' financial results exceeded expectations, but the company trimmed its outlook, which could impact its stock prices.
She also talks about Birkenstock: the German sandal-maker’s share prices dropped after its market debut. In terms of the market, Angeline notes that the volatility index (VIX) has slightly decreased, while the US dollar has increased marginally.
She speaks to IG financial analyst Jeremy Naylor, who says that market reaction to the CPI numbers has been minimal. He discusses the movements in the S&P 500, US tech market and Dow, pointing out that tech stocks are currently affecting the S&P 500 negatively while the Dow is performing better.
Middle East, earnings reports could feed volatility
Jeremy also mentions how traders are closely watching the situation in Israel and the upcoming earnings reports for potential market volatility.
In terms of specific stocks, Delta Air Lines saw its shares rise due to stronger demand and better-than-expected profits, but the situation in Israel and its potential impact on oil prices could affect airline stocks.
Walgreens profits fall with drop in Covid resources demand
Walgreens' Q4 profits fell below expectations because of decreased sales in Covid-related products. Microsoft received a hefty $28.9 billion tax bill that it plans to appeal.
Ford's ongoing strikes and the demand for higher pay from the United Auto Workers Union are concerning and could impact US gross domestic product (GDP) numbers. Additionally, Birkenstock's disappointing market debut indicates that investors are cautious about new listings.
Angeline also mentions that the International Energy Agency (IEA) has lowered its forecast for oil demand growth in 2024 due to global economic conditions and energy efficiency improvements. Technical analyst Sean Morrison discusses the volatility in oil prices and suggests that Brent crude might continue to experience gains, providing a technical perspective.
In terms of the US dollar, Angeline notes that the CPI numbers and ongoing geopolitical tensions could result in higher borrowing costs for a longer period of time. This information is valuable for traders who want to stay informed about potential market movements and make more informed trading decisions.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
