Daily Brief - CPI is here!

TLDR: As January closed its doors, the Consumer Price Index bestowed upon us a tale of shifting economic winds.

In a modest ascension, the CPI for All Urban Consumers edged up by 0.3% on a seasonally adjusted basis, marking a 3.1% climb over the past 12 months.

Diving deeper, we see the fabric of our economy woven with threads of both resilience and challenge. The index for all items less food and energy, often seen as a core measure of inflation, rose by 0.4% in January, seasonally adjusted, tallying up to a 3.9% increase over the year.

The narrative of food and energy sectors themselves tells a story of contrast. Energy indices dipped by 0.9% in January, with gasoline prices leading the descent. Yet, not all was gloomy; the electricity and natural gas indices saw increases, painting a picture of a sector marked by variability.

The food sector, on the other hand, showcased a more upbeat performance. Notable was the rise in the food at home index by 1.2% over the last 12 months, with nonalcoholic beverages and other food at home seeing significant climbs. The dining out experience also became pricier, with the index for food away from home rising by 5.1% over the past year.

Market Movers: When 10Y yields jump?

Here are the best and worst performing sectors on a 1-month basis based on previous episodes of the US 10Y crossing 4.3%:

Top 3 Sectors:

1. Financials Sector: 2.20%
2. Consumer Discretionary Sector: 1.95%
3. Financials Sector: 1.85%

Bottom 3 Sectors:

1. Materials Sector: -1.58%
2. Information Technology Sector: -2.87%
3. Real Estate Sector: -4.89%

Earnings Update: Airbnb reports tonight

Analysts predict the company to post quarterly earnings of $0.27 per share, which would represent a substantial 237.5% increase from the previous year. Revenue is also expected to rise, with forecasts suggesting a 21.6% jump to $1.86 billion compared to the same quarter last year.

These expectations reflect the broader industry's recovery and Airbnb's strong positioning within it, as the company continues to capitalize on the increasing demand for travel and lodging options post-pandemic.

Discover how other companies could react post earnings with the help of TOGGLE's WhatIF Earnings tool.

Asset Spotlight: Up, up and away!

In the 4 past occurrences when analysts were bullish about Nvidia's EPS, analysis from Toggle indicated a pattern of a median upward movement in the stock price over the next 3 months.

NVIDIA is set to report its next quarterly earnings on February 21, 2024, after the market closes. For the upcoming earnings, growth is anticipated to continue, reflecting NVIDIA's strong position in the market.