Stocks Open Mixed Amid Earnings Deluge and Revised Inflation Data
Wall Street Mixed at Friday’s Open
Wall Street saw a mixed start to trading on Friday as investors navigated through a busy week of quarterly corporate results and a yearly revision to U.S. inflation data.
Market Performance
By 09:42 ET (14:42 GMT), the benchmark index had added 0.1%, the tech-heavy index had gained 0.3%, and the blue-chip index had inched down by 0.1%. On Thursday, the three main averages closed in the green, putting them on pace to post their fifth-consecutive weekly gain.
Revised Inflation Data
A revised print of U.S. consumer price index data showed that the annualized rate of inflation in the fourth quarter was unchanged at 3.3%, indicating that an easing in price pressures throughout last year is still in tact. Officials at the Federal Reserve had said that they would be keeping an eye on the updated reading as they assess the path ahead for interest rates.
Corporate Updates
PepsiCo unveiled a full-year forecast for organic revenue growth of at least 4%, below Bloomberg consensus expectations of 5.2%, as the food and beverage group flagged waning benefits from elevated prices. However, fourth-quarter core per-share earnings beat estimates. Shares in the Doritos chips owner were lower in early trading. Shares in Pinterest tumbled after the social media company missed fourth-quarter revenue expectations and issued soft guidance for the March quarter. Cloudflare shares spiked after the internet firm unveiled first-quarter income and revenue guidance that topped Wall Street expectations. Take-Two Interactive cut its annual bookings guidance, citing projected softness for titles like “NBA 2K24” and a planned release moving out of its fiscal fourth quarter. Shares in the video game publisher fell sharply.
Oil Prices and Middle East Tensions
Oil prices were higher as ongoing violence in the Middle East showed little signs of abating after Israel rejected a ceasefire offer from Hamas. At 09:45 ET, the contract expiring in April was up 0.9% at $82.40 a barrel, while Brent crude climbed by 1.3% to $77.22 per barrel. Israeli forces carried out an attack on the southern border city of Rafah on Thursday following a decision by Prime Minister Benjamin Netanyahu to refuse to bring hostilities to a halt. Crude prices rose in the prior session.
