Stock Market Today: Inflation Concerns and Upcoming Earnings Shape Market Sentiment
As of Thursday, February 13, 2025, the stock market is navigating through a complex landscape of economic data, corporate earnings, and geopolitical developments. Investors are closely watching inflation trends and their potential impact on Federal Reserve policy, while also anticipating a series of important earnings reports.
Market Performance and Inflation Concerns
The stock market showed mixed performance on Wednesday, February 12, with major indexes reacting to hotter-than-expected inflation data. The Dow Jones Industrial Average fell 0.5%, while the S&P 500 shed 0.2%. The Nasdaq Composite managed to finish the session marginally higher, up less than 0.1%.
The Consumer Price Index (CPI) rose 3% in January, marking its largest increase since June and surpassing economists’ expectations. This data has raised concerns about the Federal Reserve’s timeline for potential interest rate cuts. As a result, Treasury yields surged, with the 10-year Treasury yield jumping to 4.63% from 4.53% the previous day.
Federal Reserve Outlook
Federal Reserve Chair Jerome Powell, in his testimony before Congress, reiterated that the central bank is in no rush to cut interest rates. The recent inflation data has further reinforced this stance. Interest rate futures now suggest traders see about a 70% chance of a 25 basis point rate cut by the end of 2025, down from about an 80% chance on Tuesday.
Upcoming Economic Data
Investors are now turning their attention to the January Producer Price Index (PPI) report, scheduled for release on February 13 at 8:30 a.m. ET. Economists polled by Reuters expect a monthly increase of 0.3%. This data will be crucial in further assessing inflationary pressures and their potential impact on Fed policy.
Major Stock Movements
Several stocks have been making significant moves in recent trading sessions:
1. CVS Health (CVS): Surged 15% after beating fourth-quarter profit estimates.
2. Gilead Sciences (GILD): Jumped 7.5% following an optimistic 2025 earnings forecast.
3. Tesla (TSLA): Added more than 2% in Wednesday’s session, showing resilience amidst broader market concerns.
4. Lyft (LYFT): Dropped 8% after forecasting lower-than-expected gross bookings for the current quarter.
5. Robinhood Markets (HOOD): Surged 15.7% in after-hours trading following better-than-expected fourth-quarter results.
Upcoming Earnings Reports
Several major companies are set to report earnings on February 13, which could significantly impact market sentiment:
1. Deere & Company (DE): The farm machinery giant is expected to report earnings per share of $3.14, representing a 49.60% decrease compared to the same quarter last year.
2. Moody’s Corporation (MCO): Analysts forecast earnings per share of $2.60, an 18.72% increase year-over-year.
3. Duke Energy Corporation (DUK): Expected to report earnings per share of $1.61, a 6.62% increase from the previous year.
Other notable companies reporting include Howmet Aerospace (HWM), Datadog (DDOG), and CBRE Group (CBRE).
Global Factors
Adding to the market’s complexity, U.S. President Donald Trump has reported separate phone calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy, both expressing a desire for peace. This development has introduced a geopolitical element that could influence market sentiment in the coming days.
Looking Ahead
As the market digests the latest inflation data and awaits the PPI report, investors remain cautious. The interplay between economic indicators, corporate earnings, and global events will likely continue to drive market movements in the near term. With the Federal Reserve’s stance on interest rates becoming increasingly crucial, market participants will be closely monitoring upcoming economic data and Fed communications for clues about the future direction of monetary policy.
In this dynamic environment, investors are advised to stay informed about both macroeconomic trends and individual company performances as they navigate the complexities of the 2025 stock market landscape.
