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Coffee With Greta: Hot Inflation Stunts Rally


DJIA Futures: -361 (-0.9%)

SPX Futures: -63 (-1.3%)

NASDAQ Futures: -303 (-1.7%)

Good morning friends!

Futures are falling after the release of hotter-than-expected inflation data. 

Let’s get right to it!

Yields Jump, Stocks Drop On Hot CPI

Treasury yields are rising while stocks are sliding after the January CPI came in hot.

The Bureau of Labor Statistics’ consumer price index rose 0.3% last month and 3.1% year over year. 

That was higher than expectations for a 0.2% monthly and 2.9% annual gain. 

The core CPI rose 0.4% monthly and 3.9% annually vs 0.3% monthly and 3.7% annually expected. 

Higher housing prices accounted for much of the increase with shelter prices up 0.6% monthly and 6% annually. 

Food prices rose 0.4% monthly and energy prices dropped 0.9%. 

The 10-year Treasury yield is up nine basis points at 4.28% while the 2-year yield is up 11 basis points at 4.6%.

Coca-Cola Rises On Sales Beat

Coca-Cola (KO) shares are up 1.2% ahead of the open after reporting mixed Q4 results. 

Here’s how the beverage giant’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.49, in line with expectations
  • Revenue: $10.85 billion vs $10.68 billion expected

Total revenue rose 7% year over year while organic revenue jumped 12%. 

Sales volume in North America shrank 1% but higher prices helped offset that decline. 

Coke forecast 2024 organic revenue growth of 6% to 7% in 2024 with comparable EPS expected to grow 4% to 5%. 

Shopify Drops Despite Earnings Beat

Shopify (SHOP) shares are tumbling 12.3% in premarket trade despite beating Q4 expectations on the top and bottom line. 

Here’s how the e-commerce platform’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.34 vs $0.30 expected
  • Revenue: $2.14 billion vs $2.08 billion expected

Gross merchandise volume rose 23% to $75.1 billion vs $72.2 billion expected. 

Shopify forecast 2024 revenue growth year over year at a “low-twenties” percentage rate. 

Analysts were anticipating revenue of $8.39 billion which implies 19% growth. 

But the company warned it expects “meaningfully higher” operating expenses in the first quarter, which appears to be weighing on the stock. 

Hasbro Drops On Q4 Miss, Weak Outlook

Hasbro (HAS) shares are down 5.8% ahead of the open after missing Q4 expectations and issuing weak guidance. 

Here’s how the toy maker’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.38 vs $0.65 expected
  • Revenue: $1.29 billion vs $1.34 billion expected

Revenue dropped 23.2% year over year and it was the third straight quarter Hasbro has missed earnings expectations. 

The company’s Wizards of the Coast and Digital Gaming segments saw revenue rise 10% from a year ago.

But Consumer Products revenue dropped 25% as toys and game volume sank 19%.

Entertainment revenue also plunged 31%.

Hasbro said it expects Wizards of the Coast revenue to fall between 3% and 5% in 2024 with Consumer Products revenue down 7% to 14%. 

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