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.
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